month ? If Springfield Express raises its average passenger fare to $ 190 , it is estimated that the average load factor will decrease to 60 percent . What will be the monthly break-even point in number of passenger cars ? ( Refer to original data .) Fuel cost is a significant variable cost to any railway . If crude oil increases by $ 20 per barrel , it is estimated that variable cost per passenger will rise to $ 90 . What will be the new break-even point in passengers and in number of passenger train cars ? Springfield Express has experienced an increase in variable cost per passenger to $ 85 and an increase in total fixed cost to $ 3,600,000 . The company has decided to raise the average fare to $ 205 . If the tax rate is 30 percent , how many passengers per month are needed to generate an after-tax profit of $ 750,000 ? ( Use original data ). Springfield Express is considering offering a discounted fare of $ 120 , which the company believes would increase the load factor to 80 percent . Only the additional seats would be sold at the discounted fare . Additional monthly advertising cost would be $ 180,000 . How much pre-tax income would the discounted fare provide Springfield Express if the company has 50 passenger train cars per day , 30 days per month ? Springfield Express has an opportunity to obtain a new route that would be traveled 20 times per month . The company believes it can sell seats at $ 175 on the route , but the load factor would be only 60 percent . Fixed cost would increase by $ 250,000 per month for additional personnel , additional passenger train cars , maintenance , and so on . Variable cost per passenger would remain at $ 70 . Should the company obtain the route ? How many passenger train cars must Springfield Express operate to earn pre-tax income of $ 120,000 per month on this route ? If the load factor could be increased to 75 percent , how many passenger train cars must be operated to earn pre-tax income of $ 120,000 per month on this route ? What qualitative factors should be considered by Springfield Express in making its decision about acquiring this route ?