The drivers still have registration costs of $480 per year as well as car servicing which costs $240 every 6 months, monthly phone costs of $50 and car loan repayments of $250. In addition, drivers still need to buy petrol and it has been calculated the use of petrol for an average ride is $1 per ride.

In addition, Quber wants to take the break-even analysis further and give insights back to the drivers and suggest, on average, how many rides are needed to be completed per month for drivers to make a monthly salary of $5,000. You have analysed the historical data of the rides per driver per month for you and determined a ride on average costs $25 per ride. Currently, Quber wants you to base your analysis on the assumption drivers receive a 72% cut of the average fare.

Use this information above to complete the requested analyses below.

1. Calculate:
   1. The break-even number of rides needed by the company.
   2. The break-even number of rides to inform a driver.
   3. The income made by the company at break-even.

Show all working out including the modelling and solution steps.

2. 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.
3. 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.
4. (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.

5. In Excel, produce a break-even graph for Quber and include it here
6. In Excel, produce a Net Profit graph for a Quber driver and include it here.

7. There will be 2 lines on the Drivers graph: one for total profit with the original petrol cost and one for total profit for the revised petrol cost for a driver.

   On the graph, identify the general regions corresponding to profits and losses. The units along the x-axis will be the number of rides. The units along the y-axis gives the revenue in dollars

\begin{tabular}{|r|r|} \hline \multicolumn{1}{|c|}{ Description } & \multicolumn{1}{|c|}{ Cost } \\ \hline Quber's Office Space & 50,000 \\ \hline Salaries & 200,326 \\ \hline Driver's \& Company Insurances & 600,250 \\ \hline Ad hoc Maintenance & 80,000 \\ \hline Website Management & 30,000 \\ \hline Government Tax & $1.00 per ride \\ \hline App Service Fee & $0.25 per ride \\ \hline \end{tabular} \begin{tabular}{|r|r|} \hline \multicolumn{1}{|c|}{ Description } & \multicolumn{1}{|c|}{ Cost } \\ \hline Quber's Office Space & 50,000 \\ \hline Salaries & 200,326 \\ \hline Driver's \& Company Insurances & 600,250 \\ \hline Ad hoc Maintenance & 80,000 \\ \hline Website Management & 30,000 \\ \hline Government Tax & $1.00 per ride \\ \hline App Service Fee & $0.25 per ride \\ \hline \end{tabular}