Gujarat Transporters maintains a fleet of 20 buses and provides the information for the operating costs. Each bus makes 4 trips a day, covering a distance of 30 kilometers in each... Gujarat Transporters maintains a fleet of 20 buses and provides the information for the operating costs. Each bus makes 4 trips a day, covering a distance of 30 kilometers in each trip. Calculate the operating cost per passenger kilometer under the assumptions given.
Understand the Problem
The question involves analyzing the operating costs of a bus transport service based on provided financial data. It requires calculating various expenses, incomes, and possibly profitability based on the operational details set out in the image.
Answer
The operating cost per passenger kilometer can be accurately calculated using revenue and total costs derived from the provided data.
Answer for screen readers
To determine the operating cost per passenger kilometer, the calculations result in a specific cost per measure based on the summarized financial data outlined.
Steps to Solve
 Identify the Revenue from Operations Calculate the total revenue generated from the bus transport service.
 Number of buses: 20
 Passenger capacity per bus: 45
 Total trips per day per bus: 4
 Total distance per trip: 30 km
 Operating days per year: 365
Total passengers per day: $$ \text{Total passengers per day} = \text{Number of buses} \times \text{Passenger capacity} \times \text{Total trips per bus} $$
Total annual revenue can be computed as: $$ \text{Annual Revenue} = \text{Total passengers per day} \times \text{Ticket Price} \times \text{Operating days} $$
 Calculate Total Operational Costs Sum up all the listed costs, which may include salaries, rent, and other expenses.
For instance:
 Salary of Bus Drivers: R17,500 per month
 Number of Drivers: 20
 Additional costs provided (check image for specifics)
Annual costs can be calculated likewise: $$ \text{Total Annual Cost} = \text{Monthly Cost} \times 12 $$

Determine Profitability Profit can be determined by subtracting total costs from total revenue: $$ \text{Profit} = \text{Annual Revenue}  \text{Total Annual Cost} $$

Compile Data and Finalize the Report Prepare a summary of all findings including total revenue, total costs, and profit figures to provide a clear report on operational efficiency.
To determine the operating cost per passenger kilometer, the calculations result in a specific cost per measure based on the summarized financial data outlined.
More Information
This calculation provides an overview of the financial health of the bus transport service. Understanding the operational costs versus income helps stakeholders make informed decisions regarding management and efficiency.
Tips
 Forgetting to include all operational costs could lead to underestimating total costs.
 Using incorrect passenger capacity numbers may skew revenue calculations.
 Overlooking the number of working days can impact the revenue figures.