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Their financial analyst has estimated that the cost for this route will be as follows: 8) Amtrack currently provides box lunches for each passenger. The
Their financial analyst has estimated that the cost for this route will be as follows: 8) Amtrack currently provides box lunches for each passenger. The variable cost of each lunch is $5, while the fixed costs are $100,000. Bojangles has offered to supply each lunch for $7. If Amtrack outsourced the lunches the fixed would be eliminated. a. If Amtrack transported 30,000 passengers a month should they outsource the lunches? Explain-show work b. What if they had 50,000 passengers? Explain -show work
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