FastBus Inc. FastBus Inc. offers low-cost bus transportation between Philadelphia and New York City. The company has 2 buses, each bought for $300,000. Each bus can carry 40 passengers per trip and does 7 daily round trips between Philadelphia and New York City. The price of each one-way ticket is $12. The company sells 28 seats on average per one-way trip, so the load factor is 70%. The annual fixed cost of running the company is $3,000,000. The major variable cost in their line of business is gasoline, which costs $25 per one-way trip. Fast Bus Inc. buses operate 365 days a year. Define the return on invested capital as the ratio of the profits (PER YEAR) and the invested capital. You can draw an ROIC tree in the same way that we drew a KPI tree in class. Simply have the ROIC as “the root” of the tree instead of profits. Then answer the question: What is the current number of customers that are served each year? Assume that FastBus operates 365 days per year and that each customer buys only one one-way ticket per person
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
FastBus Inc.
FastBus Inc. offers low-cost bus transportation between Philadelphia and New York City. The company has 2 buses, each bought for $300,000. Each bus can carry 40 passengers per trip and does 7 daily round trips between Philadelphia and New York City. The price of each one-way ticket is $12. The company sells 28 seats on average per one-way trip, so the load factor is 70%.
The annual fixed cost of running the company is $3,000,000. The major variable cost in their line of business is gasoline, which costs $25 per one-way trip. Fast Bus Inc. buses operate 365 days a year.
Define the return on invested capital as the ratio of the profits (PER YEAR) and the invested capital. You can draw an ROIC tree in the same way that we drew a KPI tree in class. Simply have the ROIC as “the root” of the tree instead of profits. Then answer the question:
What is the current number of customers that are served each year? Assume that FastBus operates 365 days per year and that each customer buys only one one-way ticket per person.
(Note: please enter your answers in numeric form only. Do NOT use commas or other punctuation in your answer).
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