BUS
TRANSPORTATION
SERVICE
GROUP 5
QUEENNIE MAE T. ELLAM
JERALD J. SANTA – ANA
JOHN CARLO S. QUINLOG
TTH/ 4:00 – 5:30 PM
I.
Service Description
A. Service Name
BUS TRANSPORTATION SERVICE
Bus Transportation Service will help the tourists, students, professionals, senior citizens and
local Zanortehanons ease their daily routine through taking a bus and also helping the environment
by keeping the carbon footprints reduce and traffic jams. A bus that will bring them to their final
destination with the fastest, safest and cheapest way.
B. Service Picture
C. Location of the Service
II.
Cost Classification
a. Supplies
Item
Price
Php 1,000.00
Supplier
Young Printing Press
Php 24,750.00
Petron Gasoline Station
TICKETS/RECEIPTS
(Full tank of 5 buses)
GASOLINE
Php 5,000.00
OFFICE SUPPLIES
Sebio Educational
Supply
B. Labor
POSITIONS
Manager
DUTIES & RESPONSIBILITIES
Implements management policies
and procedures
WAGE/SALARY
Php 800.00
per day
Responsible for hiring new
employees
Imposes policy rules and regulations
Administers and control the business
Bookkeeper
Creates financial reports and
transactions
Php 400.00
per day
Serves as a retainer of the business
Keep an official track of the
company spending
Cashier
Accurately brings on register and
maintain all cash registers
Php 355.00
per day
In-charge in keeping the money
through a bank designated by the
management
Act as custodian of daily sales of the
establishment
Prepares the payroll of the
employees
Inspector
Responsible for ensuring safety
standards are met on buses and other
Php 400.00
per day
public transport vehicles
They inspect vehicles to check they
are in good condition and that they
meet legal requirements
Dispatcher
Act as a time keeper
Deploy all the bus
Php 351.00
per day
Drives the bus and carry all the
Drivers
Php 500.00
passengers safely
Conductor
per day
Receive the payments and give
Php 355.00
tickets/receipts for some of the
per day
passengers
Assess the passengers
Repair and maintain the bus
Mechanic
Php 351.00
Performs weekly diagnostic to keep
per day
the bus condition on track
Makes a report for any bus damages
and changes
Keeps the bus and office clean
Janitor
Php 147.00
Per day
C. Equipment/Machineries
Item
Supplier
Hyundai
Unit
5
Unit Price
3,200,000
Sub total
16,000,000
1
2,860
2,860
Company
BUS
More to Store
Shop
(online)
BANDY CLOCK
Yeahgood.ph
1
20,000
20,000
1
30,000
30,000
1
5,204
5,204
(online)
AIR COMPRESSOR
Octagon
Computer
Shop
COMPUTER SET
Dipolog Multi
Builder
Supplier
TOOLS
d. Service Cost per passenger
PARTICULARS
AMOUNT
Fixed Costs
Depreciation (Bus)
Php 10,556.00
Salaries
Php 1,606.00
Total Fixed Cost
Php 12,162.00
Variable Costs
Gasoline
Php 5,830.00
Total Variable Cost
Php 5,830.00
Total Fixed and Variable Costs
Php 17,992.00
Divide: Number of Passengers per day
Total Service Cost per passenger
750
Php 24.00
e. Selling and Administrative costs
Salaries
Php 2,053.00
Depreciation for Equipment
Php 36.00
Supplies
Php 200.00
Total Selling and Administrative costs
Php 2,289.00
d. Depreciation Schedules
ASSET INFORMATION
Initial Cost of the Asset
Php 16,000,000.00
Salvage Value
Php 800,000.00
Useful Life
15 years
Depreciation
Accumulated
Depreciated Asset
Expense
Depreciation
Value
2023
-
-
16,000,000.00
2024
1,013,333.33
1,013,333.33
14,986,666.67
2025
1,013,333.33
2,026,666.66
13,973,333.34
2026
1,013,333.33
3,039,999.99
12,960,000.01
2027
1,013,333.33
4,053,333.32
11,946,666.68
2028
1,013,333.33
5,066,666.65
10,933,333.35
2029
1,013,333.33
6,079,999.98
9,920,000.00
2030
1,013,333.33
7,093,333.31
8,906,666.69
2031
1,013,333.33
8,106,666.64
7,893,333.36
2032
1,013,333.33
9,119,999.97
6,880,000.00
2033
1,013,333.33
10,133,333.33
5,866,666.70
2034
1,013,333.33
11,146,666.63
4,853,333.37
2035
1,013,333.33
12,159,999.96
3,840,000.04
2036
1,013,333.33
13,173,333.29
2,826,666.71
2037
1,013,333.33
14,186,666.62
1,813,333.38
2038
1,013,333.33
16,000,000.00
800,000.00
Date
III.
Pricing Strategy
Competitive pricing will be the strategic pricing of our business since our price setting is
based on our competitor’s prices which is Evergood Transit and we have a legal pricing from the
LTFRB.
Total Income Per Route
INCOME FROM DAPITAN TO DIPOLOG
Passengers
Rate
Total
Dapitan – Dipolog
11
35
385
Polo – Dipolog
5
25
125
San Pedro – Dipolog
3
20
60
Owaon – Dipolog
2
20
40
Larayan – Dipolog
2
20
40
Sicayab – Dipolog
4
15
60
Minaog – Dipolog
3
15
45
Total
30
Destination
Php 755.00
The table shows how many passengers will ride in each bus in just one route. According to
our observation, the total income in every bus is Php 755.00 per trip multiply by total trip in a day
which is 5 trips, the result is Php 3,775.00 per bus a day. The total income in one day will be
multiplied to the 5 buses and that will result to Php 18,875.00. Therefore, our monthly income is
Php 566,250.00 and the annual income is 6,795,000.
Public transportation benefits road pricing by absorbing commuters who shift their travel
from automobile to bus or rail. By replacing traffic with free – flowing conditions on major routes,
congestion, pricing the speed and productivity can improve current express bus services, making
them more attractive to commuters while reducing operating costs. Reducing congestion can also
facilitate rapid deployment of innovative, high – performance bus – rapid – transit (BRT)
operations in major corridors, which require only modest investments in new vehicles and
passenger facilities. Improving the performance and variety of peak – period public transportation
through a combination of congestion pricing and limited capital investment can provide significant
benefits to current public transportation users. It can improve public transportation’s effectiveness
in reducing peak – period auto travel and can provide the expanded passenger – carrying capacity
necessary to accommodate shifts in public transportation commuter use induced by the imposition
of congestion pricing.
Blue Skies Express transportation based their bus fares to their competitors. Pricing is the
reflection of everything we do in business, from the product development. In order to have a good
pricing it must be start a simple, a fixed recurring price plan. Your price should almost never be
lower that your costs or higher that what consumers consider “fair”
Feeder Bus
Destination
Dapitan Proper to Airport/
Duration
Price
1 way trip
Php 1,050.00
Sea Port/Dipolog City
Any trip from Dapitan City to Airport/ Sea Port / Dipolog City will only cost Php 1,050.00.
In one bus, it can fit up 30 passengers with a regular fee of Php 35.00 per head.
Bus Advertisement
Rental
Full rear wrap
Side Wall wrap
Duration
Rate
Monthly
Php 50, 000.00
Monthly
Php 70,000.00
Costing

Service Php 40,000.00

Sticker Php 10,000.00

Service Php 48,000.00

Sticker Php 22,000.00
IV.
Sales Forecast
PROJECTED INCOME
Service
Daily Income
Monthly Income
Annual Income
Bus Transportation
Php 18,875.00
Php 566,250.00
Php 6,795,000.00
Feeder Bus
Php 1,050.00
Php 31,500.00
Php 378,000.00
Php 50,000.00
Php 600,000.00
Bus Advertisement
Total
Php 7,773,000.00
PROJECTED ANNUAL INCOME
2024
2025
2026
2027
2028
P 7,773,000.00
P 8,550,300.00
P 9,405,330.00
P 10,345,863.00
P 11,380,449.30
Based on our service pricing, the total income in every bus is Php 755.00 per trip multiplied
by the total trip in a day which is 5 trips, the result is Php 3,755.00 per bus a day. The total income
in one day will be multiplied to the 5 buses, the result is Php 18,875.00. Our monthly income will
become Php 566,250.00 and the total annual income for Bus Transportation is Php 6,795,000.00.
The projected annual service income for our Feeder Bus will be Php 378,000.00 because in one
month we estimated to have 4 trips with the total of 48 trips every year. On the Bus Advertisement
we estimated to have 5 advertisements in one year for special locations such as Christmas Day,
New Year, Valentines Day and some advertisement by school or new businesses that’s why we
come up with Php 600,000.00 for our annual income. To get the projected annual income, we
multiplied 10% annual increase based on our financial study.
In the next (5) five years the demand for transportation will be higher than before because
of the following of the increasing expansion of tourism and commerce. ASEAN integration will
also bring more jobs and tourists therefore the population of employees and tourists will increase,
and the toddlers will grow into elementary students; elementary students will be in high school;
high school students will be in college and college students will become employees and so forth
and so on. Therefore, our target market will expand. However, because of the increasing demand
for transportation, new competitors will arise. Thus, our company will be doing research to level
up or innovate our services in order to cope up with their need and continue our service.
V.
Breakeven Analysis
a. BEP in units
Break Even Point = Fixed Costs / Selling price – Variable costs
Break Even Point
Per Passenger
Rate
Average Selling price
629.25
100%
Less: Average Variable costs
535.50
85%
Average Contribution Margin
93.75
15%
Fixed Cost
Php 12,162.00
Divided by: Average Contribution Margin
93.75
Break even point in passenger
130
b. BEP in pesos
Break Even Point = Fixed Costs / Selling price – Variable costs
Break Even Point
Per Passenger
Rate
Average Selling price
629.25
100%
Less: Average Variable costs
535.50
85%
Average Contribution Margin
93.75
15%
Fixed Cost
Divided by: Contribution Margin Rate
Break even point in Peso
Php 12,162.00
15%
Php 81,080.00