If Intervale Railway’s fixed costs total $90,000 per month, the variable cost per passenger is $45, and tickets sell for $75, how much revenue must the Railway generate to earn $120,000 in operating income per month? $350,000 $210,000 $7,000 $525,000

Managerial Accounting
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ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
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Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
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If Intervale Railway’s fixed costs total $90,000 per month, the variable cost per passenger is $45, and tickets sell for $75, how much revenue must the Railway generate to earn $120,000 in operating income per month?

  • $350,000
  • $210,000
  • $7,000
  • $525,000
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