Question

Two businessmen jointly bought a minibus which could ferry 25 paying passengers when full. The fare between two towns A and B was Kshs 80 per passengers for one way. The minibus made three round trips between two towns daily. The cost of fuel was Kshs 1500 per day. The driver and the conductor were paid daily allowances of 200 and Kshs 150 respectively.A further Kshs 4,000 per day was set aside for maintenance, insurance and loan payment.(a) One day, the minibus was full on every trip.(i)How much money was collected from the passengers that day?(ii) How much was the net profit

Answer 1

Final Answer:

The correct amount of money that was collected from the passengers on the day when the minibus was full on every trip, is 6000 Kshs

The calculated net profit is 150 Kshs.

Given:

We are given the two businessmen jointly bought a minibus which could ferry 25 paying passengers when full.

The fare between two towns A and B was Kshs 80 per passengers for one way.

The minibus made three round trips between two towns daily.

The cost of fuel was Kshs 1500 per day.

The driver and the conductor were paid daily allowances of  Kshs 200 and Kshs 150 respectively.

A further Kshs 4,000 per day was set aside for maintenance, insurance and loan payment.

One day, the minibus was full on every trip.

To Find:

We are required to find the money that was collected from the passengers that day and also the net profit.

Explanation:

First we will calculate the total earnings and then the the total expenditure.

The profit is obtained by deducting the total amount of expenditure from the total earning.

We will finally calculate the net profit using the above concept.

Step 1 of 3

First, calculate the total earnings taking into account the following..

• The minibus made three round trips between two towns daily
• There are 25 paying passengers per trip when full.
• The fare was Kshs 80 per passenger for one way.

So, the total earnings in Kshs is

$=3*25*80\\=6000$

Step 2 of 3

In the second step, calculate the total expenditure taking into account the following..

• There is the cost of fuel of Kshs 1500 per day.

• The daily allowances paid to the driver was  Kshs 200.
• The daily allowances paid to the conductor was  Kshs 150.

• The further set aside amount for maintenance, insurance and loan payment was Kshs 4,000 per day  

So, the total expenditure in Kshs is

$=1500+200+150+4000\\=5850$

Step 3 of 3

Finally, calculate the net profit in Kshs in the following way.

$=6000-5850\\=150$

Therefore, the required amount of money that was collected from the passengers on the day when the minibus was full on every trip, is 6000 Kshs

The calculated net profit on the day when the minibus was full on every trip, is 150 Kshs.

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