CA Intermediate · Cost and Management Accounting · Service Costing
Sunrise Travels runs a bus on a route of 40 km one way, making 3 round trips daily for 25 days in a month. The bus carries on average 30 passengers on every trip, in each direction. What is the total passenger-km for the month?
Total passenger-km is 1,80,000. The bus covers 80 km per round trip, 240 km daily and 6,000 km in 25 days. Multiplying 6,000 km by 30 passengers carried on every trip in both directions gives 1,80,000 passenger-km.
- A180000Correct
- B90000
- C108000
- D135000
Explanation
Daily km = 40 x 2 x 3 = 240 km. Monthly km = 240 x 25 = 6,000 km. Passenger-km = 6,000 x 30 = 1,80,000. Using only one-way distance gives 90,000, which is wrong.
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