According to data provided by British Rail to the Mergers and Monopolies Commission, the 1988 costs of a Sprinter (Class 150/2) train were: Capital Cost 525,000, Annual costs (per unit): Depreciation 26,300, Overhaul and maintenance 32,600, Stabling and cleaning 9,400, Total annual cost of: 2 drivers 20,200, 2 guards 15,600, Mileage costs (per mile): Maintenance 0.15, Fuel 0.126. Assuming 90,000 miles annual use and an average of 45 passengers, what is the average cost per passenger mile?
According to data provided by British Rail to the Mergers and Monopolies Commission, the 1988 costs of a Sprinter (Class 150/2) train were: Capital Cost 525,000, Annual costs (per unit): Depreciation 26,300, Overhaul and maintenance 32,600, Stabling and cleaning 9,400, Total annual cost of: 2 drivers 20,200, 2 guards 15,600, Mileage costs (per mile): Maintenance 0.15, Fuel 0.126. Assuming 90,000 miles annual use and an average of 45 passengers, what is the average cost per passenger mile?
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter8: Cost Analysis
Section: Chapter Questions
Problem 1E
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According to data provided by British Rail to the Mergers and
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