Slumber bus services provided transport services to the general public four days per week. Its services include trips from Gaborone to Francistown. If the bus is not fully booked passengers who drops off in Palapye and Phikwe are allowed to board but on the uniform fee. The following are variable costs per trip:

BWP

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

Slumber bus services charges each passenger BWP190 per trip.

Required a) Calculate contribution margin and contribution in sales value.

b) Determine the number passengers required to board the bus in order to breakeven.

Calculate the breakeven in sale value

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.

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.