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...

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.

A) 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.

B)
What is the current ROIC? (Please give your answer in decimal form. For example, 0.25 for 25%)

C)
What is the minimum load factor at which the company breaks even? (Please give your answer in decimal form. For example, 0.25 for 25%)