Assume Intervale Railway is considering hiring a reservations agency to handle passenger… 1 answer below »

1. For Frank’s Funky Sounds, units of production depreciation on the trucks is a

a. variable cost.

b. fixed cost.

c. mixed cost.

d. high-low cost.

2. Assume Intervale Railway is considering hiring a reservations agency to handle passenger reservations. The agency would charge a flat fee of $13,000 per month, plus $3 per passenger reservation. What is the total reservation cost if 200,000 passengers take the trip next month?

a. $613,000

b. $3.07

c. $600,000

d. $13,000

3. If Intervale Railway’s fixed costs total $90,000 per month, the variable cost per passenger is $45, and tickets sell for $75, what is the breakeven point in units?

a. 1,200 passengers

b. 2,000 passengers

c. 225,000 passengers

d. 3,000 passengers

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