Practice Problem Chapter 3.3
Bus Company Income
Use cell references in your formulas wherever possible. Be sure to use correct syntax and absolute/relative
referencing. Read the problem carefully before beginning.
You are the owner of a bus company and trying to determine your actual expenses/profits for each of
the three routes you operate. Your buses go from Columbus to Cleveland, Cincinnati and Detroit.
Your expenses consist of gas, which is based on gas mileage obtained at average trip speeds, and the
hourly cost of your driver. Each driver is assigned one route per day - drivers to all locations go
round trip each day. You are given information on a worksheet name “Data”. From this information
you have constructed another worksheet in the same workbook named “Costs”. Answer the
questions below based on the information given:




The cost of gas in dollars per gallon is listed on sheet: Data in cell B6.
The cost per hour of a driver is $25 per hour flat rate, and is listed in cell Data!B7
The average revenue (sales from seat tickets per day) for each route is listed in sheet: Data
Column F.
Profit per day is defined as revenue per day less total Costs per day.
worksheet:
A
B
C
D
E
F
total
average miles
hours average
miles
speed
per
per day revenue
per day mph
gallon
driving per day
320
50
12
6.4
1500
240
45
11
5.33
1380
600
60
10
10
3000
Columbus - to:
2 Cleveland round trip
3 Cincinnati round trip
4 Detroit round trip
1
5
cost of gasoline per
gallon
driver costs in dollar
7 per hour
$1.00
6
$25
Data
A
1 City
2
3
4
5
Costs
Cleveland round
trip
Cincinnati round
trip
Detroit round trip
totals
B
C
D
E
$ gas per $ driver per total cost profits per
day
day
per day ($)
day ($)
$
26.67
$
160.00
$
186.67
$ 1,313.33
$
$
21.82
60.00
$
$
133.33
250.00
$
$
155.15
310.00
$ 1,224.85
$ 2,690.00
$ 5,228.18
Bus Company Income - Answers
1. Write a formula is cell Data!E2 to determine the number of hours a driver is needed for this route
- assume he/she is only paid for driving time not waiting at the terminal or stops. Assume you will be
copying this formula down the column.
Know: miles/day & miles/hour – want hours/day : miles/day divided by
miles/hr give hrs per day: =B2/C2
2. Write a formula in Costs!B2 to determine the cost of gas ($ gas per day) on a round trip to
Cleveland. Assume you will be copying this formula down the column.
Know: miles/day, miles per gallon, $/gallon want $/day : mi/day /
mi/gallon * $/gallon = $/day =Data!B2/Data!D2*Data!B$6
3. Write a formula in Costs!C2 to determine the cost of a driver ($driver per day) for the round trip
to Cleveland. Assume you will be copying this formula down the column.
Know hours/day of driver and $/hour of driver: hrs/day * $/hr = $/day
= Data!E2 * Data!B$7
4. Write a formula in Costs!D2 which can be copied down to determine the total Costs per day ($)
for the round trip to Cleveland. Assume you will be copying this formula down the column.
Know $/day of gas and $/day driver: add $/day + $/day =B2+C2
5. Write a formula in Costs!E2 to determine the profits per day ($)for the round trip to Cleveland..
Assume you will be copying this formula down the column.
Know revenue in $/day and Costs in $/day: just subtract to get profit
= Data!F2 – D2
6. Write a formula in Costs!E5 totaling the profits ($) from all three routes per day. Assume you
have filled down all formulas from row 2 columns B, C, D and E.
=sum(E2:E4)
7. Write a formula in Costs!C6 (not shown) to determine the average cost per day of a driver ($).
Assume you have filled down all formulas from row 2 columns B, C, D and E.
=average (C2:C4)