C D H M Slow-speed N 2 Revenue: ts High-speed Total 3,750,000.00 3 Costs: 18,000,000.00 S 21,750,000.00 Variable Costs Cost Driver No. of cost drivers Unit cost $ total Hauling costs No. of cost drivers Unit cost unT # of trips 200 $ $ total 5,000.00 , 000,000.00 300 Repair Materials 200 S ,000.00 # of trips 200.00 ,400,000.00 $ 40,000.00 3,400,000.00 Gourmet services contract 300 S 400.00 # of passenger 120,000.00 160,000.00 100000 3.00 S Total Variable Costs 800,000.00 ,040,000.00 800,000.00 Fixed Costs Allocation ,320,000.00 s Total Costs Activity level (X) 4,360,000.00 Leasing Costs Allocation Activity level (X) of Train 10 $ 100,000.00 S 1,000,000.00 # of Trains Depreciation of track & 10 $ 500,000.00 S 5,000,000.00 6.000.000.00 11 ignaling equipmer 17% 1,000,000.00 166,666.67 83% 12 833,333.33 Interest Payment 17% 00,000.00 $3,333.33 83% 1,000,000.00 To allocate the depreciation we used the Ratio of leasing cost. ( 100000+500000=600000) ratio = 100/600000. 16,666.67 8 13 Maintenance Workers 50% S 5,000.00 500,000.00 To allocate the depreciation we used the Ratio of leasing cost. ( 100000+500000-600000) ratio = 100/600000. 2,500.00 50% S 2,500.00 Engineers and onboard 5,000.00 We used the 50/50 Ratio 14 service staff total 38% 150,000.00 S $7,692.31 62% S 92,307.69 Administrative personnel, N/A 15 marketing costs, IT costs 500,000.00 150,000.00 To Allocate the Engineers and onboard service staff Based on Power and fuel ratio or Hauling costs. (5000+8000=13000) ratio = 5000/13000 N/A S 500,000.0 tations, which are only used by the slow-speed trains, are largely paid for by the local 16 Gourmet services contract N/A 700,000.0 500,000.00 municipalities. Station-related / Detroit N/A N/A 20,000.00 700,000.00 700,000.00 Station-related / Chicago N/A N/A 32,000.00 20,000.00 20,000.0 Station-related / All other N/A NIA 7,000.00 $2,000.00 7,000.00 N/A 32,000.00 Total Fixed Costs 7,000.00 21 1,317,192.31 Total Costs: Variable + Fixed 7,596,807.69 s 2,357,192 8,914,000.00 22 Cost per passenger 0,916,808 $ 13,274,000.00 31.43 23 Profitability: 109.17 140.60 24 Operating Income (Revenues-Costs) 8,476,000.00 5 Profitability per passenger 1,392,807.69 7,083,192.31 8,476,000.00 18.57 26 70.83 89.40 27 28 29A E G Slow-speed % High-speed % Total Revenue S 3, 750, 000.00 100% S 18, 000, 000.00 100% S 21, 750, 000.00 100% Costs: Variable Costs 1, 040, 000.00 27.7% $ 3,320, 000.00 18.4% $ 4, 360, 000.00 20.0% Contribution Margin S 2, 710,000.00 72.3% S 14, 680, 000.00 31.6% S 17,390,000.00 80.0% Traceable Fixed Costs EA 1,000, 000.00 26.7% $ 5,700,000.00 31.7% $ 6,700,000.00 30.8% Segment Margin 1, 710,000.00 45. 6% S 8,980, 000. 00 49.9% S 10, 690, 000.00 49.1% Common Fixed Costs $ 317,192.31 8.5% 1,896, 807.69 10.5% 2,214,000.00 10.2% Operating Income $ 1,392,807.69 37.1% $ 7,083,192.31 39.4% 8,476,000.00 39.0% Sales Mix 13 14 15 Slow-speed High-speed 16 Segments Breakeven # Of Tickets Sales # Of Tickets Sales 17 19 20 21 Sales w Company Breakeven 25