Answer 1
Assuming that I am Kalpana. Following are the questions that that need to be raised answered
minimum fair to charge customers for Rapid to open the commuter bus service.
I. How many people will use the commuter bus service?
II. What will be anticipated daily demand for each of bus trip during the day?
III. How much would be the costs for these buses?
IV. What will happen if the buses are breakdown? What will be used as breakup and what
will this cost?
V. What is fuel cost expected to be?
VI. What will the route be?
VII. How many days a week will the service be in operation?
VIII. How many weeks will the bus service be in operation?
IX. How will the bus be staffed? What will be employee cost?
X. What should the profit/return be for Rapid?
The answer of the questions are as follows,
I. City Valley University’s department of institutional research revealed that 116 faculty
and staff as well as 464 students lived in Midtown. These people were surveyed and an
analysis of the results lead to a projection that approximately 200 would use the
commuter service.
II. Following table shows the daily demand of the buses,
III. A 32-passenger bus can be acquired for $335,000/bus.
IV. If a bus breaks down, RAPID will immediately dispatch a backup bus to the scene. The
cost of dispatching this bus will be $5500, and includes mileage, driver salary, etc.
Busses are well maintained, and this is expected to seldom happen.
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