Question: Bay Ferry Co. has a net investment of $1 million in ferry and facilities and is allowed a 10% return. Operating costs are half a

Bay Ferry Co. has a net investment of $1 million in ferry and facilities and is allowed a 10% return. Operating costs are half a million dollars per year, one-half of which is for fuel. Ticket sales are the only revenues. If fuel costs are projected to rise from $2 to $3 per gallon, what percent, to the nearest percent, of ticket price increase is justified, assuming no other changes?

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