Answer: Megabus being a late mover in the US, has allowed the company to learn from past mistakes by companies such as Greyhound, who filed for bankruptcy in the mid 90's and who lost most of it's business due to poorly maintained terminals, high prices for fares and unsafe conditions. Mega bus's advantages include fares as lows as 1 dollar, free wi-fi, stylish buses and power outlets. They Can offer these low fares since the company eliminated purchase Windows for tickets, selling tickets online only and by eliminating expensive terminal operations by dropping off and picking up riders at sidewalk stops like public bus operators. There are few disadvantages besides the fact that rising gas prices affect travel and low fare prices affect revenue if quantity is not met .
Advantages - 1. Affordable 2. Pretty scenery 3.You get what you paid for
Disadvantages-1. Uncomfortable 2. It’s Either Freezing or Sweltering 3. Odd People
2. Yes it has own Overwhelming resources and capabilities 3. Train
Explanation:
Answer:
Company should continue with old machine (Alternative 1)
Explanation:
Preparation of a differential analysis dated April 11 on whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2)
DIFFERENTIAL ANALYSIS
Continue with old machine(Alternative 1) ; Replace with old machine(Alternative 2); Differential effect on income
REVENUES
Proceeds from sale of machine
$0 $50500 $50500
COSTS
Purchase price $0 -$75000 -$75000
Direct labor -$56000 -$37000 19000
(11200*5 = -56000)
(7400*5 = -37000)
Income (loss) -$56000 -$61500 -$5500
Based on the above differential analysis the Company should continue with OLD MACHINE (Alternative 1)
Answer:
Teller's break-even point in sales dollars for 2012 is $400,000
Explanation:
The formula to compute the break even point in dollars is shown below:
Break even point (in dollars) = (Fixed expenses) ÷ (contribution ratio)
where,
Fixed expense is $120,000
And, the contribution ratio equals to
= (Contribution per unit) ÷ (sales per unit) × 100
where,
Contribution is = Selling price - variable cost per unit
= $300 - $210
= $90 per unit
Now put the values to the above formula
So, the ratio would be
= ($90 per unit) ÷ ($300 per unit) × 100
= 30%
Now put the values to the above formula
So, the value would be
= $120,000 ÷ 30%
= $400,000
