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<p>[quote user="blue streak 1"]</p> <p>It appears that passenger load factors are a bucket of worms. I cannot imagine the accounting nightmare this variable of return for a fixed cost durable goods figures must pose. Not simple double entry ? Neither does my accountant daughter [/quote]</p> <p>There are many ways to look at the issue. However, without access to Amtrak's accounting records, it is impossible to determine the need for additional equipment. It is equally impossible to determine the incremental cost of adding another car and therefore the incremental revenue that would be needed to justify doing so.</p> <p>Amtrak knows or should know how many people are turned away upon attempting to book a sleeper. It should know the number of days the current equipment is sold out and what segments caused it to be sold out. It should also know the cost of operating a sleeper. And it should know what revenues the sleeper is generating. The current data, including the cost information, is easy to get assuming Amtrak has good accounting records, and I believe it does. What's not so easy is predicting whether the company can generate enough incremental revenues from the increment increase space to offset the incremental cost of the new equipment.</p> <p>As a matter of interest how did you determine that the cost of the new sleepers is in the neighborhood of $3.5 million? </p>
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