Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The First cost of a passenger bus is 800,000. Its estimated life is 4 years with no salvage value. The operating cost per year of

The First cost of a passenger bus is 800,000. Its estimated life is 4 years with no salvage value. The operating cost per year of 300 days of operation are as follows: Tires, 24,000; gasoline, 60 liters per day at 15 per liter; Oil, 80 per day; maintenance and repair, 40,000; labor 800 per day; miscellaneous expense, 18,000; depreciation, sinking fund at 10%. If the average passenger fare is 3.50 for each passenger one way and expected profit or return is 15% determine the minimum average number of passengers that should be transported each day. Use the AW method and Future worth method.

Please don't copy paste answer otherwise ready for dounvote

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Called To Account Fourteen Financial Frauds That Shaped The American Accounting Profession

Authors: Paul M. Clikeman

1st Edition

0415996988, 978-0415996983

More Books

Students also viewed these Accounting questions