QUICKLINk June 2005 part b plz help!

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    abidfatima5
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    In part b Revenue Generation per vehicle why have they divided the answer 110431 by 1.05 for quicklink?? How has this 1.05 been computed? And for celer transport revenue per vehicle has been divided by 1.05 and multiplied by 90% why?


    Avatar of gromit
    gromit
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    I think they took the Actual of 105172 and multiplied by 1.05 (see note (vi)(a) of the question).

    For Celler they take 72679, increase by 10%, then adjust by dividing by 90% because Celler’s rate will go up form 90% to 100% of Quicklink ((ix) (1) and (2))

    72,679 x 1.1 /0.9 = 88,830

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