Answer to the whole of question 8.

Question 8 Basubiya bus services provided transport services to the general public four days per week. It's services include trips from Gaborone to Kazungula Bridge. If the bus is not fully booked passengers who drops off in Nata and Kasane are allowed to board but on the uniform fee. The following are variable costs per trip: Variable costs per trip Wi-Fi 10.00 Lunch and snacks 15.00 The fixed costs per trip are as follows Salary-bus driver 560 Salary conductor 640 Fuel 3,500 Insurance 250 Basubiya bus services charges each passenger BWP190 per trip. Required a) Calculate contribution margin and cont ribution in sales value. [3 marks] b) Determine the number passengers required to board the bus in order to breakeven. Calculate the breakeven in sale value [3 marks] c) If the bus company targets operating profit of BWP4,125 per trip, compute the number of passengers who should board the bus per trip. [3 marks] d) The fuel prices increase during the month of September, now each trip requires to fill up the tanks with BWP4,250 for each trip. The shareholders also employed a bus inspector who will be paid BWP240 per trip. Calculate the new bus fare per passenger to meet the target operating profit assuming the same number of passengers as in item (C) above. [4 marks]