Question 02Mr. Rahman is the CEO of Rider Inc. a ride sharing, digital ticketing and reservation platform for public transport. Right now, they collaborate with the AC bus services on a few routes only. However, they want to start their own transport services on a new route. To run this operation, it requires leasing a few buses for monthly payments of 50000 taka/year. Variable costs would be 50 per/ticket. Each ticket will be sold to customers at an average price of 70taka. What would be the profit/loss if 3000 tickets are sold per year?How many tickets per year should be sold in order to break even?What volume is needed to obtain a profit of 20000 taka per year?If 2300 tickets can be sold and a profit target is 15000 taka, what price should be charged per ticket?If the buses have design and effective capacities of 10,000 and 5000 customers per year, respectively, and only 3000 customers/year use these buses during pandemic, what will be the utilization of the holding area?

If 3,000 tickets are sold per year: Cost incurred = Monthly leasing cost + Variable cost of tickets…

Answered: Mr. Rahman is the CEO of Rider Inc. a…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Question 02

Mr. Rahman is the CEO of Rider Inc. a ride sharing, digital ticketing and reservation platform for public transport. Right now, they collaborate with the AC bus services on a few routes only. However, they want to start their own transport services on a new route. To run this operation, it requires leasing a few buses for monthly payments of 50000 taka/year. Variable costs would be 50 per/ticket. Each ticket will be sold to customers at an average price of 70taka.

What would be the profit/loss if 3000 tickets are sold per year?
How many tickets per year should be sold in order to break even?
What volume is needed to obtain a profit of 20000 taka per year?
If 2300 tickets can be sold and a profit target is 15000 taka, what price should be charged per ticket?
If the buses have design and effective capacities of 10,000 and 5000 customers per year, respectively, and only 3000 customers/year use these buses during pandemic, what will be the utilization of the holding area?

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