Question 1 Merlion LuxBus Pte Ltd provides point-to-point coach services between Singapore and various Cities in Malaysia. It competes based on differentiated luxury and on-time services. It owns a fleet of 12 buses, each with a capacity of only 24 passengers in a 2 is to 1 seating arrangement per row and up to 8 rows. This allows the seats to be nearly fully reclined with good leg room for passengers.

Singapore is the hub of Merlion's operations. Point-to-point travel service means that buses will depart in the morning for a Malaysian city. The same buses will return to Singapore with Malaysian passengers in the evening.

The COVID19 pandemic in 2020 and 2021 closed land travel between Singapore and Malaysia. This severely affected the business of Merlion. To cope with the downturn, they pivoted towards local tour services. With both countries now moving towards the endemic phase of COVID19 and opening up quarantine-free cross border travel, Merlion is now planning to revert to its core business of luxury point-to-point services between the 2 countries.

Table 1. Daily Market Demand (passengers) From \\ To Singapore Malacca Kuala Lumpur Penang Singapore 0 200 350 120 Malacca 250 0 0 0 Kuala Lumpur 400 0 0 Penang 100 0 O 0Table 2. Profit Per Passenger ($) From \\ To Singapore Malacca Kuala Lumpur Penang Singapore 0 15 30 33 Malacca 15 0 Kuala Lumpur 30 0 0 0 0 Penang 33