INTRODUCTION - Oregon State University

Full cost per ride without accepting Bunsen's offer: $136,650 ÷ 24,750 = $5.52. Revenue under the government contract is . $5.52 x 120% x 50 rides per week x 15 weeks = $4,968. If Bunsen's offer is accepted: Full cost is still $136,650. Total number of riders is now . 24,750 from above + (30 rides per week x 15 weeks) = 25,200 ................
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