The owner of Sky High Tours is considering purchasing a bus, which sells for $75,000, to expand their tour operations. The owner estimates that it will cost an additional $150 per tour to operate the bus, while the owner can book the bus for tours for $300. If, for this bus, design capacity is 60 passengers per tour, effective capacity is 50 passengers per tour, and actual output is anticipated to be 45 passengers per tour, what would be its utilization?
A)100 percent
B)90 percent
C)80 percent
D)75 percent
E)70 percent

Question

Quizplus · Accepted Answer

Utilization = (Actual Output / Effective Capacity) * 100= (45 / 50) * 100= 90%

The Owner of Sky High Tours Is Considering Purchasing a Bus