Costing doubt

Will you plz explain me this formula in operating costing

per passenger per km=total cost to be rec. / no .of kms * passenger/km

my doubt is why it is passenger/km

it should be total passengers

Replies (1)

Total Cost / No. of Kms gives you the cost per kms. 

Your requirement is Per Passenger Per km

So that you are calculating Passenger/km

 

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