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OCR for page 28
28 Sharing the Costs of Human Services Transportation Summary Determining the distinction between the cost of a transportation service and the price that the transportation provider charges its customers is a particularly useful task, especially when those customers are human service agencies. Prices that are determined from a detailed cost analysis ben- efit the transportation provider by ensuring sufficient income for operations and benefit the pur- chaser by ensuring an equitable price. A model that clearly specifies fixed costs and operating costs (both those operating costs attributable to hours devoted to service and those costs attributable to miles of service) can be used to create detailed cost information.