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(b) (4 marks) Quber wants to give insights in advance to the drivers on how many rides on average need to be completed per month
(b) (4 marks) Quber wants to give insights in advance to the drivers on how many rides on average need to be completed per month to make a profit of $5,000 per month. Calculate the number of rides required for a driver to make $5,000 profit per month. (c) (4 marks) The drivers ban together at a local petrol station and want to reduce the number of rides required to make a profit $5,000 per month. They have asked Quber to give them insights into their variable costs to achieve the same profit but only are required to complete 308 rides per month. Calculate the new petrol cost per ride. (d) (2 marks) What is the effect from the change in the cost of petrol per ride to contribution margin? Explain the effect of this change on the break-even number in part (a). Hint! Your discussion should focus on the impact made by the contribution margin. You can show the calculation of the contribution margin to support your discussion, but no other calculations should be used. (b) (4 marks) Quber wants to give insights in advance to the drivers on how many rides on average need to be completed per month to make a profit of $5,000 per month. Calculate the number of rides required for a driver to make $5,000 profit per month. (c) (4 marks) The drivers ban together at a local petrol station and want to reduce the number of rides required to make a profit $5,000 per month. They have asked Quber to give them insights into their variable costs to achieve the same profit but only are required to complete 308 rides per month. Calculate the new petrol cost per ride. (d) (2 marks) What is the effect from the change in the cost of petrol per ride to contribution margin? Explain the effect of this change on the break-even number in part (a). Hint! Your discussion should focus on the impact made by the contribution margin. You can show the calculation of the contribution margin to support your discussion, but no other calculations should be used
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