Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Nevada railroad company expects to incur monthly fixed cost of $5.5 million and a variable cost of 15 Cents per ton. The average

The Nevada railroad company expects to incur monthly fixed cost of $5.5 million and a variable cost of 15 Cents per ton. The average cost of cargo haul per ton is 45 Cent. 1. How much cargo should the Railroad company haul to break-even? 2. What would be the average cost of cargo haul per ton for the break-even point and the monthly revenue? 3. If the company desires to make a profit of one-half million dollars, how much cargo should the Railroad company haul per month?

Step by Step Solution

3.42 Rating (155 Votes )

There are 3 Steps involved in it

Step: 1

To answer your questions lets go through each scenario 1 To break even the revenue should cover both ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management and Cost Accounting

Authors: Colin Drury

8th edition

978-1408041802, 1408041804, 978-1408048566, 1408048566, 978-1408093887

More Books

Students also viewed these General Management questions

Question

14. Let X be uniform over (0, 1). Find E[X|X Answered: 1 week ago

Answered: 1 week ago