1 The Geeland Bus Company (GBC) is a partly government-funded organisation which provides transport services to
the population of Geeland, a country which is divided into four regions i.e. Northern, Eastern, Southern and Western.
The Western region differs from the Northern, Eastern and Southern regions in that it is a rural area with a low
population.
The Terrific Transport Company (TTC) is a privately owned organisation which also provides transport services to the
population of Geeland. All TTC buses are luxuriously fitted; each passenger has their own television and all buses
have on-board catering facilities which serve a variety of drinks and snacks. The costs of these luxuries are included
in fares charged by TTC.
Both GBC and TTC operate from premises in the Northern region. GBC operates a bus service to and from the Eastern,
Southern and Western regions as well as a ‘Hopper’ service which takes passengers around all regions, other than
the Western region, within Geeland. TTC also operates a bus service to and from the Eastern and Southern regions of
Geeland as well as a Hopper service. TTC does not operate a service to and from the Western region.
The following information is available:
(1) A summary of the financial performance of GBC and TTC for the years ended 30 November 2006 and 2007 is
as follows:
(12) At a meeting of the board of directors held during 2007, the managing director of GBC stated that: ‘on no account
shall we discontinue the operation of our Western route’.
Required:
(a) Prepare a report on the operating performance and financial performance of GBC and TTC for the years
ended 30 November 2006 and 2007. As part of your report, you should include an appendix showing
detailed workings of how each of the six figures marked with an asterisk (*) in note 1 has been calculated.
(23 marks)
Note: 6 marks are available in respect of the six figures marked with an asterisk (*). 17 marks are available
for other calculations and discussion, including 4 professional marks.
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