The total operating costs of a monorail are paid using a combination of passenger fares and tax revenue.

The total operating costs of a monorail are paid using a combination of passenger fares and tax revenue. The farebox recovery ratio is the ratio of passenger fares to total operating costs.

A monorail in one city has $69 million in operating costs per year, and uses $30 million from tax revenue.

To the nearest hundredth, what is the farebox recovery ratio for the city?

ANSWER:  0.57 or 0.56

passenger fares + tax revenue = operating costs

passenger fares = operating costs – tax revenue

= $69 million – $30 million  =  $39 million

The ratio of passenger fares to total operating costs is:   $39 million   = 0.5652.

$69 million

To the nearest hundredth, the farebox recovery ratio is 0.57.

Leave a Reply

Your email address will not be published.