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Breakdown number of Bus riders Q2

following the same assumption of finding the bus riders per route, shouldn't the cost of insurance be: 
50 $ / day * 1 day/ 10 hrs * 1 hrs/20 miles =0.25 $/route
 

instead of the current cost of fuel of: 

50/10 translating to 50 $ / day * 1 day/ 10 hrs = 5$/day 

making the finale cost be 100.25 $/ route --->  67 passengers as the finale answer for breakeven 

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Profile picture of Tommaso
Tommaso
Coach
15 hrs ago
Ex-McKinsey | MBA @ Berkeley Haas | No-nonsense coaching | 50% off on the first meeting in April

Hey Anonymous,


Always happy to help, but we need more context. I don’t see the insurance/bus section in the “related case” at your question’s link.

Do you mind sharing more?


Best,


Tom

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Alessa
Coach
2 hrs ago
10% off 1st session | Ex-McKinsey Consultant & Interviewer | PEI | MBB Prep | Ex-BCG

hey Rawan:)

based on the info you provided so far: 

I would say that your intuition is good, but the issue is mixing up units and what the cost actually depends on. insurance is typically time-based, not distance-based. so once you already convert 50$/day into 5$/hour, you should stop there if the route takes 1 hour. multiplying again by miles (1 hr / 20 miles) double-counts and artificially shrinks the cost.

so the clean logic is: insurance per route = 50$/day ÷ 10 hours = 5$ per route (assuming 1-hour route). no need to adjust for miles unless the case explicitly says insurance depends on distance, which is unusual.

your corrected total cost per route should therefore stay at 100 + 5 = 105$, not 100.25$. that will slightly increase the breakeven passengers compared to your 67.

hope this helps! 

best,
Alessa :)