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The Victoria, British Columbia, location, an urban area, suggested that ATL might make more profit on its bikes if some were moved to resort towns.
The Victoria, British Columbia, location, an urban area, suggested that ATL might make more profit on its bikes if some were moved to resort towns. From February 1 to July 31, 2021, ATL relocated 100 bikes from Victoria to the resort town of Fernie, British Columbia. As the bikes are all usable in winter weather, they were consistently used throughout this period. When used in Victoria, these bikes had an annual contribution margin of $600,000. While in Fernie, each bike averaged nine trips per operational day and earned average revenue of $2.50 per trip. Each bike operated 90% of the available days; the rest of the time, they were being serviced. A maintenance worker can maintain a maximum of 100 bikes per year. In Fernie, ATL was able to pay their maintenance worker $45,000 annually whereas a similar worker in urban areas is paid $75,000. Over the course of the trial, replacement parts in Fernie averaged $50 per bike. Given the results, should we move more bikes to resort locations or keep them in the current, urban, locations
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