(OPIM Bus Inc.) OPIM Bus Inc. offers low-cost bus transportation between Philadelphia and Bryn Mawr. 1 answer below »
(OPIM Bus Inc.) OPIM Bus Inc. offers low-require bus gait among Philadelphia and Bryn Mawr. The invested consummate is $500,000, corresponding to the cannonade in the two vehicles it owns. Each of the two buses can propel 50 passengers. Each bus does 12 daily trips from Philadelphia to Bryn Mawr and 12 from Bryn Mawr to Philadelphia.
The worth is $10 for each one-way ticket. The vulgar impeach constituent is 70 percent (i.e., 35 seats are sold on mean). The annual require of unreserved the employment and popular the profession is $6 darling. The assemblage operates 365 days a year.
a. Draw an ROIC (recompense on invested consummate) tree for the assemblage. [6.2]
b. What is the vulgar ROIC? [6.2]
c. What is the partiality impeach constituent at which the assemblage breaks level? [6.3]
d. What impeach constituent would the assemblage accept to close so that it obtained a 10 percentage-point acception in the ROIC (e.g., an ROIC increasing from 5 percent to 15 percent)? [6.3]