CMA Intermediate · Cost Accounting · Operating Costing - Transport, Hotel and Healthcare
Sunrise Travels runs a bus with 40 seats on a route of 50 km one way, making 4 round trips per day for 25 days. The bus is 75% occupied on average. How many passenger-km are charged for the month?
Passenger-km is 3,00,000. The bus runs 400 km a day for 25 days, which is 10,000 km, and carries an average of 30 passengers, being 75% of 40 seats. Multiplying 10,000 by 30 gives the figure.
- A3,00,000Correct
- B1,50,000
- C7,50,000
- D2,00,000
Explanation
Distance per day = 50 x 2 x 4 = 400 km. Month = 400 x 25 = 10,000 km. Passengers carried on average = 40 x 75% = 30. Passenger-km = 10,000 x 30 = 3,00,000. Using 1,50,000 would count only one direction.
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