A transport company runs a bus service and incurs £74,400 total costs in a month. Buses carried 12,000 passengers over an average journey of 15 miles each. What is the cost per passenger-mile?

Answer and explanation

Correct answer: D. £0.41

  1. Step 1: Passenger-miles = 12,000 × 15 = 180,000.
  2. Step 2: Cost per passenger-mile = £74,400 ÷ 180,000.
  3. Step 3: = £0.41 (to the nearest penny).
Answer
£0.41.
Why not the others: £6.20: This is the cost per passenger, which ignores the length of each journey. £4,960.00: This divides total cost only by the average distance. £6.19: This adds passengers to miles instead of multiplying them.

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