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Page 1/12

Buses Route 1

now after year 1 after year 2


buses route 1 buses route 1 buses route 1
No. of buss 9 No. of buss 7 No. of buss 7
No. of drivers 25 No. of drivers 21 No. of drivers 21
trip length (miles) 10 trip length (miles) 10 trip length (miles) 10
total annual Miles 462620 total annual Miles 462620 total annual Miles 462620
total annual trips 46262 total annual trips 46262 total annual trips 46262
average passengers 25 average passengers 27 average passengers 30
average fare 1.1 average fare 1.1 average fare 1.1
buses cost 90000 buses cost 70000 buses cost 79920
Fuel & tyres costs 138800 Fuel & tyres costs 145740.1 Fuel & tyres costs 153026.8
maintenance costs 36000 maintenance costs 28000 maintenance costs 28000
cost of drivers 600000 cost of drivers 504000 cost of drivers 504000
overhead costs 180000 overhead costs 140000 overhead costs 140000
total cost 1044800 total cost 887741 total cost 904946.8
total revenue 1272205 total revenue 1373982 total revenue 1526646
profit (loss) 227405 profit (loss) 486241 profit (loss) 621700

7 buses instead of
9
21 drivers instead of 25

price per new bus =(499200(price for new buses at the end of 1st year)/4)=
12480 79920 124800. dep. = 124800/10years. 3 old buses with dep. Of 10000 each. Dep for all buses = 10000*3+12380*4

12480 79920 price per new bus =(499200(price for new buses at the end of 1st year)/4)=124800. dep. = 124800/10years. 3 old
Page 2/12

Buses Route 2 (page 1)

now now after year 1


buses route 2 buses route 3 buses route 2
No. of buss 1 No. of buss 2 No. of buss 1
No. of drivers 4 No. of drivers 8 No. of drivers 4
trip length (miles) 3.5 trip length (miles) 3 trip length (miles) 12.14
total annual Miles 42385 total annual Miles 72660 total annual Miles 86704
total annual trips 12110 total annual trips 24220 total annual trips 7142
average passengers 12 average passengers 10 average passengers 28
average fare 0.9 average fare 1 average fare 1.1
buses cost 10000 buses cost 20000 buses cost 10000
Fuel & tyres costs 12717 Fuel & tyres costs 21800 Fuel & tyres costs 27314.53
maintenance costs 4000 maintenance costs 8000 maintenance costs 4000
cost of drivers 96000 cost of drivers 192000 cost of drivers 96000
overhead costs 20000 overhead costs 40000 overhead costs 20000
total cost 142717 total cost 281800 total cost 157315
total revenue 130788 total revenue 242200 total revenue 219974
profit (loss) -11929 profit (loss) -39600 profit (loss) 62659
Page 3/12

Buses Route 2 (page 2)


Lease 1 bus

after year 1 after year 2 after year 2


buses route 2 (lease) buses route 2 buses route 2 (lease)
No. of buss 1 No. of buss 1 No. of buss 1
No. of drivers 4 No. of drivers 4 No. of drivers 4
trip length (miles) 12.14 trip length (miles) 12.14 trip length (miles) 12.14
total annual Miles 86704 total annual Miles 86704 total annual Miles 86704
total annual trips 7142 total annual trips 7142 total annual trips 7142
average passengers 28 average passengers 30 average passengers 30
average fare 1.1 average fare 1.1 average fare 1.1
buses cost 24000 buses cost 10000 buses cost 24000
Fuel & tyres costs 27314.53 Fuel & tyres costs 28680.21 Fuel & tyres costs 28680.21
maintenance costs 4000 maintenance costs 4000 maintenance costs 4000
cost of drivers 96000 cost of drivers 96000 cost of drivers 96000
overhead costs 20000 overhead costs 20000 overhead costs 20000
total cost 171315 total cost 158681 total cost 172681
total revenue 219974 total revenue 219974 total revenue 235686
profit (loss) 48659 profit (loss) 61293 profit (loss) 63005
Page 4/12

Luxury Coaches (page 1)

now year 1 offer year 1


Coaches (luxury) Coaches (luxury) Coaches (luxury offer year 1)
No. of coaches 2 No. of coaches 2 No. of coaches 1

No. of drivers 4 No. of drivers 3 No. of drivers 2


250
trip length (miles) 200 trip length (miles) 200 trip length (miles)
total annual miles =
total annual Miles 100000 total annual Miles 100000 total annual Miles 75000 total annual trips * trip length(500*200)
total annual trips 500 total annual trips 500 total annual trips 300
ours (500trips*500pounds)/ offer
earnings 250000 earnings 250000 earnings 142500 (300trips*475pounds)
coaches cost(dep) 40000 coaches cost(dep) 40000 coaches cost(dep) 20000 dep./ ours 2*20000/ offer 20000
Fuel & tyres costs 30003 Fuel & tyres costs 31503.2 Fuel & tyres costs 23627.4 fuel increased in year 1 by 5%
maintenance costs 8000 maintenance costs 8000 maintenance costs 4000 (give in the case)
cost of drivers 104000 cost of drivers 63250 cost of drivers 51290 see summary1 file
overhead costs 40000 overhead costs 40000 overhead costs 20000
total cost 222000 total cost 182754 total cost 118918
total revenue 250000 total revenue 250000 total revenue 142500
profit (loss) 27997 profit (loss) 67246 profit (loss) 23582

2 full time + 1 part time driver 2 full time drivers


see file for calculations of drivers
Page 5/12

Luxury Coaches (page2)

year 2 offer year 2


Coaches (luxury) Coaches (luxury offer year 2)
No. of coaches 2 No. of coaches 1
No. of drivers 3 No. of drivers 2
trip length (miles) 200 trip length (miles) 250
total annual Miles 100000 total annual Miles 75000
total annual trips 500 total annual trips 300
earnings 250000 earnings 157500 ours (500trips*500pounds)/ offer(300trips*525pounds)
coaches cost 40000 coaches cost 20000
fuel in year 2 increased by
Fuel & tyres costs 33078.3 Fuel & tyres costs 24808.73
5%
maintenance costs 8000 maintenance costs 4000
cost of drivers 63250 cost of drivers 51290
overhead costs 40000 overhead costs 20000
total cost 184329 total cost 120099
total revenue 250000 total revenue 157500
profit (loss) 65671 profit (loss) 37401
Page 6/12

School and Private Hire Coaches

now year 1 year 2


Coaches (schools & private) Coaches (schools & private) Coaches (schools & private)
No. of coaches 4 No. of coaches 3 No. of coaches 3
No. of drivers 3 No. of drivers 3 No. of drivers 3 (Ref)
trip length (miles) 10/100 trip length (miles) 10/100 trip length (miles) 10/100 (1)
total annual Miles 36520 total annual Miles 36520 total annual Miles 36520 (2)
total annual trips 1152/250 total annual trips 1152/250 total annual trips 1152/250 (3)
school earnings 129600 school earnings 129600 school earnings 129600 (4)
private earning 87500 private earning 87500 private earning 87500 (5)
coaches cost 48000 coaches cost 36000 coaches cost 36000 (6)
Fuel & tyres costs 10957.1 Fuel & tyres costs 11504.97 Fuel & tyres costs 12080.2 (7)
maintenance costs 16000 maintenance costs 12000 maintenance costs 12000 (8)
cost of drivers 39168 cost of drivers 10070 cost of drivers 10070 (9)
overhead costs 80000 overhead costs 60000 overhead costs 60000 (10)
total cost 194125.1 total cost 129575 total cost 130151
total revenue 217100 total revenue 217100 total revenue 217100
profit (loss) 22975 profit (loss) 87525 profit (loss) 86949
Page 7/12

10 miles per trip/ 100 miles for short hire (1)


total annual miles = total annual trips * trip length =10*1152+250*100 (2)
192 working days * 6trips per day/ 250 tripsper yer (3)
225 per day * 192 days * 3 schools (4)
350 per trip * 250 trips (5)
depreciation per coach = 120000(price)/10(years) * 3 coach (6)
now = 0.3, year1 = 0.3*1.05, year2= year1*1.05 (price * total annaul miles) (7)
4000 per coach * 3 coaches (8)
see summary1 file (part time) (9)
20000 per coach * 3 coaches (10)
Page 8/12

Buses route 1 (A-B-A)

Bus No. 1 2 3 4 5 6 1 2
A Depart 6:00 6:15 6:30 6:45 7:00 7:15 7:30 7:45
B Arrive 6:40 6:55 7:10 7:25 7:40 7:55 8:10 8:25
B Depart 6:45 7:00 7:15 7:30 7:45 8:00 8:15 8:30
A Arrive 7:25 7:40 7:55 8:10 8:25 8:40 8:55 9:10

 Minimize the stoppage time for the buses at B & A


 Eliminate bus No. 7 with all its costs
 maintaining the same schedule
 sell one of the reserve buses
 profit increased from 227405£ to 391405£

Buses route 2 (A-C-D-A and A-D-C-A)

Bus No. 1 1 1 1 1 1 1 1
A Depart 6:00 6:55 7:50 8:45 9:40 10:35 11:30 12:25
acda 6:50 7:45 8:40 9:35 10:30 11:25 12:20 13:15
Bus No. 2 2 2 2 2 2 2 2
A Depart 6:00 6:55 7:50 8:45 9:40 10:35 11:30 12:25
adca 6:50 7:45 8:40 9:35 10:30 11:25 12:20 13:15
Page 9/12

 connect routes (A-C-A) & (A-D-A) up on the following graph


B

10m

5.64m
D
C

3m 120°
3.5m

A
5.64=√(3.5)²+(3)²-2(3)(3.5)Cos120°
 total trip length 12.14, total trip time 50min
 2 buses operating in opposite directions
 55min between each bus
 Increase in number of people because the route is connected with route (A-B-A) which is the favorable one
 Increased the fare to 1.10£
 From a loss of – 51529£ to a profit of 113920£
(Sell 4 buses and lease 1 in the 1st year)
School coaches and short private hire
Page 10/12

 Buy new 3 coaches and sell the 4 they have


 Negotiate with council regarding the price as the new coaches has safety measures
 Hire employees on part time bases
 Profit increased from 22974£ to 88072£

Luxury coaches

 Accept the offer and buy 1 coach separate for it


 Have only 2 employees and when ever needed hire a part time employee.
 Profit increased from 27997£ to 93454£ in the 1st year and 108454£ in the 2nd year.
Page 11/12

Calculating the part time drivers for the school coaches:

-- Short hires: 100 miles per trip with a speed of 60 miles per hour (100/60) = 1.6667 hours. With 250 trips per year (250*1.6667) = 416.6667
hours per year.
-- School trips: 20 miles daily per school with 40 minutes for 10 miles (from buses route 1) = 1.333 hours. With 192 days in a year (192*1.333)
= 256, for 3 schools (250*3) = 768 hours.
So 416.667 + 768 = 1184.667 hours with 8.5 pounds per hour (1184.667*8.5) = 10069.67 pounds

Calculating the part time & full time drivers for our luxury coaches:
Full time drivers: 10 pounds per hour, 50 hours per week, 52 weeks, 2 drivers (10*50*52*2) = 52000 pounds
Part time driver: for half of the trips(total trips 500) and running for 4.5 hours per trip (250*4.5) = 1125 hours
Pay is 10 pounds per hour (1125*10)= 11250 pound
So total driver’s cost = 52000+11250= 63250 pounds

Calculating the full time drivers for the offer luxury coaches:
10 pounds per hour for 50 hours a week for 51.29 weeks and 2 driver (10*50*51.29*2) = 51290 pounds

Fuel & Tyre Cost calculation


cost per mile = Total annual mile / total cost
0.3=36520/130151
fuel & tyre cost= cost permile * total annual miles
10957=0.3*36520

Total Annual Miles


School coaches
10miles*3coaches*2trip a day= 60 miles per day
60miles per day * 192 working days per year
school coaches miles per year = 11520
private hire trips
250 trips*100miles per trip = 25000 miles per year
Page 12/12

Total Annual miles = school coaches miles per year + private hire trips mile per year
Total Annual Miles = 11520 + 25000
Total Annual Miles = 36520

Profit and loss account

Show profit from one year to another.


Show growth from one year to another in profit
It also shows the contribution of each business unit.
(mention the profit and growth from one year to another)
We increased the fuel price by 5%
However, First buses, the bus company, is enjoying the increase as people are leaving their cars and they are using public transportation. Their
revenue increased by 3.5%

Balance for reserve:

You have to mention the things the company has to buy or sell are going to do now, then take 60% of profit at the end of 1st year & add it to
reserve to reinvest in the company & show what they have to buy and sell at the end of the 1st year, then take 60% of profit at the end of 2nd year
& add it to reserve to reinvest in the company & show what they have to buy and sell at the end of the 2nd year. We only bought 1 luxury coach
assuming that the holiday company will not renew their offer. If they want to continue with their offer, we have to buy 2 luxury coaches instead
of 1. We increased the price of buses and coaches by 4% due to inflation.
We have renewed the whole fleet. Now we have a total of 9 new buses, 3 new school coaches & 2 new luxury coaches.