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In 2012, Canadian Pacific Railway Ltd

question 302

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In 2012, Canadian Pacific Railway Ltd. announced that it would invest $1.2 billion in order to improve its operating ratio. This is an example of a financial plan.


Definitions:

Selling Price Per Unit

The amount at which a single unit of product is offered for sale to customers.

Contribution Margin

The amount by which a product's sales exceed its variable costs; used to cover fixed costs and contribute to profit.

Variable Cost

Costs that vary in direct proportion to changes in levels of activity or volume of goods produced, such as materials and labor.

Selling Price

The amount charged to customers for a product or service, determining the revenue earned by a business.

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