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Small Towns Want to Restrict the Speed of Trains Passing

question 3

Essay

Small towns want to restrict the speed of trains passing through the towns to 20 miles per hour. The Federal Railroad Administration allows trains to travel through the towns at up to 70 miles per hour. Discuss whether or not the towns may restrict the speed of the trains.
The administration should analyze if this decision of the state comes with the intent of taking extra precautions for public safety. Have accidents occurred in the past? Notwithstanding, state statutes can be preempted by federal statutes in areas that are traditionally that of the federal government.


Definitions:

Contribution Margin Ratio

A measure that indicates the percentage of each sales dollar that contributes to covering fixed costs and generating profit.

Target Profit

The amount of net income that a company aims to achieve within a specific time frame.

Fixed Expenses

Costs that remain constant for a given period of time regardless of the level of production or business activity.

Variable Expenses

Costs that vary directly and proportionally with the level of output or sales volume.

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