Question

The total operating costs of a monorail are paid using a combination of passenger fares and tax revenue. The farebox recovery ratio is the ratio of passenger fares to total operating costs. A monorail in one city has $69 million in operating costs per year, and uses $30 million from tax revenue.

To the nearest hundredth, what is the farebox recovery ratio for the city?

Answer 1

0.57 or 0.56

Explanation:

passenger fares + tax revenue = operating costs

Thus:

passenger fares = operating costs - tax revenue

= $69 million - $30 million

= $39 million

The ratio of passenger fares to total operating costs is:

$39 million

= 0.5652.

$69 million

To the nearest hundredth, the farebox recovery ratio is 0.57.