INCREASED urban congestion, the energy crisis, the uncertainty of future energy supplies, and the realization that the automobile cannot effectively meet the travel demands of the urban populations have revived new interest in upgrading and expanding existing public transit systems in urban areas throughout the United States. Any efforts to improve existing facilities require analysis of factors bearing on costs and revenues of the current and proposed extensions of service. One major problem in urban bus trans- portation operations concerns the extent to which inadequate revenues result from inefficient management.