COST TYPE Head office-related. (in Detroit station) Roadbed, track, and signaling equipment-related Station-related Train-related Onboard services VOLUME COST ELEMENTS Trips Total Passengers (over all trips) Average Ticket Price Administrative personnel, marketing costs, $500,000 per month IT costs Depreciation of track & signaling equipment Interest payments Maintenance workers Repair materials. Building costs (temperature control, leasing costs, etc.) and other costs (including cleaning service, ticket, and baggage handling personnel) Leasing costs-slow-speed train Leasing costs-high-speed train Hauling costs (power and fuel) Engineers and onboard service staff total Table 2 Ann Arbor Railroad - Projected Business for March 20X0 Gourmet services contract. Slow-Speed 200 75,000 $50 AMOUNT 300 $1,000,000 per month $180 $500,000 per month $5,000 per month $200 per slow-speed trip $400 per high-speed trip Detroit: $20,000 per month Chicago: $32,000 per month All other stations combined: $7,000 per month $100,000 per month per train $500,000 per month per train High-Speed $5,000 per slow-speed trip $8,000 per high-speed trip $150,000 per month $700,000 per month $8 per passenger 100,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Qd.7.

COST TYPE
Head office-related
(in Detroit station)
Roadbed, track, and
signaling equipment-related
Station-related
Train-related
Onboard services
VOLUME
COST ELEMENTS
Trips
Total Passengers
(over all trips)
Average Ticket Price
Administrative personnel, marketing costs, $500,000 per month
IT costs
Depreciation of track & signaling
equipment
Interest payments
Maintenance workers
Repair materials
Building costs (temperature control,
leasing costs, etc.) and other costs
(including cleaning service, ticket, and
baggage handling personnel)
Leasing costs - slow-speed train
Leasing costs-high-speed train
Hauling costs (power and fuel)
Table 2
Ann Arbor Railroad - Projected Business for March 20X0
Engineers and onboard service staff total
Gourmet services contract
Slow-Speed
200
75,000
$50
AMOUNT
300
$1,000,000 per month
$180
$500,000 per month
$5,000 per month
$200 per slow-speed trip
$400 per high-speed trip
Detroit: $20,000 per month
Chicago: $32,000 per month
All other stations combined:
$7,000 per month
$100,000 per month per train
$500,000 per month per train
High-Speed
$5,000 per slow-speed trip
$8,000 per high-speed trip
$150,000 per month
$700,000 per month
$8 per passenger
100,000
Transcribed Image Text:COST TYPE Head office-related (in Detroit station) Roadbed, track, and signaling equipment-related Station-related Train-related Onboard services VOLUME COST ELEMENTS Trips Total Passengers (over all trips) Average Ticket Price Administrative personnel, marketing costs, $500,000 per month IT costs Depreciation of track & signaling equipment Interest payments Maintenance workers Repair materials Building costs (temperature control, leasing costs, etc.) and other costs (including cleaning service, ticket, and baggage handling personnel) Leasing costs - slow-speed train Leasing costs-high-speed train Hauling costs (power and fuel) Table 2 Ann Arbor Railroad - Projected Business for March 20X0 Engineers and onboard service staff total Gourmet services contract Slow-Speed 200 75,000 $50 AMOUNT 300 $1,000,000 per month $180 $500,000 per month $5,000 per month $200 per slow-speed trip $400 per high-speed trip Detroit: $20,000 per month Chicago: $32,000 per month All other stations combined: $7,000 per month $100,000 per month per train $500,000 per month per train High-Speed $5,000 per slow-speed trip $8,000 per high-speed trip $150,000 per month $700,000 per month $8 per passenger 100,000
Question 1 - Total projected cost for March 20X0.
Costs
Head Office Costs
Roadbed Costs
Station Costs
Trains Costs
Total Roadbed Related Costs
Total Station Related Costs
Total Trains Related Costs
Gourmet Services Costs
Variable
Fixed
Total Projected Cost for March
$ Total
Transcribed Image Text:Question 1 - Total projected cost for March 20X0. Costs Head Office Costs Roadbed Costs Station Costs Trains Costs Total Roadbed Related Costs Total Station Related Costs Total Trains Related Costs Gourmet Services Costs Variable Fixed Total Projected Cost for March $ Total
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