Reference no: EM132796630

Bus companies (stage buses) have regularly experienced losses and some operations and are not viable for services. This were due to isolated areas, smaller target audiences, distance, high cost of maintenance, operating and fuel price rises. Your company is expected to set up bus services as suggested by the routes, depending on the demand in specific areas. As a new transport officer, you expect to introduce the services as needed in response to the needs of the government.

Assignment specifics are as follows (Table 1);
Info on the task

Table 1: Gohead-Gostan Sdn Bhd

1. Operating hours.....................12 hours (0700-1900)

2. Distance (one way) ............... 39 km

3. Route ................................. Sintok---- Alorsetar

4. Speed.................................70 km/h

5. Layover time......................... 15 minutes

6. Headway.............................. 25 minutes

7. Fuel..................................... Target 2.4 km/l/

8. Fuel price..............................2.25

9. Wages: driver/ per month.........1200

10. Incentive / trip.........................10

11. Admin costs ...........................2000

12. General insurance/year/ for passenger/ drives............. $ 3000

13. Seating capacity.....................30 seats

14. No. of stoppages- 26................ 30 second

15. Bus price............................... $ 300,000

16. Depreciation (vehicles) /year......... 20%

17. Repair and maintenance............ 15%

18. Profits.......................................12%

19. Taxes (SST/GST) ......................10%

Question a. Calculate the total number of trips under the operating hours for each bus.

Question b. Calculate the total number of buses necessary and plan the bus schedules for the entire day of operations.

Question c. Calculate and suggest the ticket price (one way) from Changlun to Alor Setar by means of a baseline estimate (table 2) and the government rate (table 2). Justify and why and why

Question d. Calculate the use of fuel for all bus movements in one day.

Question e. Calculate and explain the BEP (Breakeven Point) for one bus and all movements.

Table 2:  The rate of government

1. Government rate per km/run............ $ 0.095