Pallavan Transport Corporation runs the following fleet of buses in a particular area of Madras for 30 days in a month: 25 buses of 50 passenger capacity, On an average, each bus makes 10 trips a day covering a distance of 8 km in each trip with 75% of seats occupied. Generally, 10% of buses are kept away from the roads for repairs.

	Rs
Monthly expenses:
Rent	2,500
Road tax	500
Salary of chief operating manager	1,500
Salary of three assistant managers	800 each
Salary of four supervisors	400 each
Wages of 30 cleaners	100 each
Wages of 25 drivers	240 each
Wages of 25 conductors	200 each
Consumable stores	4,500
Diesel	34,000
Lubricants	5,500
Replacement of tires	1,750
Miscellaneous	2,750
Depreciation	6,500
Workshop expenses	3,500

Calculate the cost per passenger-km of operating the service.

Answer rating: 100% (QA)

Cost per passenger kilometre Total expenses ... View the full answer