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Compare the cost-effectiveness of two travel options (Option 1: Via N2, Option 2: Via R56) based on distance, toll fees, running costs, and fuel costs. Justify the most cost-effective route.

Business/Management

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Answer

2.1

Option 1 (Via the N2)\text{Option 1 (Via the N2)}

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here are the solutions to the problems:

Part 2.1· 3 steps

4

  1. Calculate the total cost for Option 1 (Via the N2).

    Distance = 195 km195 \text{ km}
    Total toll fee cost = R112.00\text{R}112.00
    Since no other costs are mentioned for this route, the total cost is the toll fee.

    Total Cost (Option 1)=R112.00\text{Total Cost (Option 1)} = \text{R}112.00
  2. Calculate the total cost for Option 2 (Via the R56).

    Distance = 260 km260 \text{ km}
    No toll fees.
    Vehicle's running cost (excluding fuel) = R3.50\text{R}3.50 per km
    Fuel cost = R1.75\text{R}1.75 per km
    First, calculate the total cost per kilometre for Option 2:

    Cost per km (Option 2)=Running cost per km+Fuel cost per km\text{Cost per km (Option 2)} = \text{Running cost per km} + \text{Fuel cost per km} Cost per km (Option 2)=R3.50+R1.75=R5.25 per km\text{Cost per km (Option 2)} = \text{R}3.50 + \text{R}1.75 = \text{R}5.25 \text{ per km}

    Now, calculate the total cost for Option 2:

    Total Cost (Option 2)=Cost per km×Distance\text{Total Cost (Option 2)} = \text{Cost per km} \times \text{Distance} Total Cost (Option 2)=R5.25/km×260 km=R1365.00\text{Total Cost (Option 2)} = \text{R}5.25/\text{km} \times 260 \text{ km} = \text{R}1365.00
  3. Compare the total costs and justify the most cost-effective route.

    Total Cost (Option 1) = R112.00\text{R}112.00
    Total Cost (Option 2) = R1365.00\text{R}1365.00
    Since R112.00<R1365.00\text{R}112.00 < \text{R}1365.00, Option 1 is the most cost-effective.
    The most cost-effective route for the company is Option 1 (Via the N2)\boxed{\text{Option 1 (Via the N2)}}.

Part 2.2

1

This question refers to "Annexure B" (a stadium layout) which is not provided in the image. Without Annexure B, it is not possible to determine the name of the seating section an official would be facing when entering through the West VIP Entrance and walking towards the soccer pitch.

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