21. Which of the following, if true, provides Coastal Rail's management with the best justification for its decision?
Answer: E
Coastal Rail's management is justified in maintaining Friday evening service because discontinuing it will not reduce expenditures.
By choosing to keep the Friday evening service, Coastal Rail’s management can argue that expenses related to rail maintenance will remain unchanged regardless of the service being offered. This financial perspective supports the decision to continue operations despite low ridership.
A) Several of Coastal Rail's top managers live in Seaside County's coastal towns.
This option does not provide a strong justification for maintaining the Friday evening service. While local management may have personal reasons to keep the service, it does not address the financial implications of running the trains or the ridership numbers, which are crucial for justifying operational costs.
B) More passengers use Coastal Rail between noon and 4 p.m. on Fridays than during those hours on other days of the week.
While this statement highlights a peak usage time, it does not directly justify keeping the Friday evening service. The focus on midday ridership does not correlate with the financial sustainability of running trains after 4 p.m., leaving the issue of expenses unresolved.
C) Most passengers who use the service after 4 p.m. on a weekday are returning home after using Coastal Rail to get to work that morning.
This statement offers insight into the behavior of evening passengers but fails to address the financial viability of continuing the service. Knowing that evening riders are returning home does not provide a strong rationale for keeping the service if it is not profitable.
D) The number of passengers using Coastal Rail after 4 p.m. has been declining on weekdays other than Friday.
This option indicates a broader trend of declining ridership that could question the sustainability of maintaining service. However, it does not bolster the decision to continue Friday evening service, as it does not relate to cost management or financial justification for this specific time slot.
E) Expenditures, such as that for rail maintenance, will not be reduced by discontinuing service after 4 p.m. on Fridays.
This option directly supports Coastal Rail's management's decision by indicating that even if the service is cut, costs associated with maintenance would remain the same. Therefore, the financial rationale for discontinuing service is weak, allowing the management to justify keeping the service operational despite low ridership.
Conclusion
The best justification for Coastal Rail's management decision to maintain Friday evening service lies in the understanding that discontinuing it would not lead to a reduction in costs. While other options discuss ridership and management preferences, they do not provide a solid financial basis for the decision. Thus, option E stands out as the most compelling rationale for maintaining the service.