From the following data relating to two different vehicles A and B, compute the cost per running mile:
|
Vehicle A |
Vehicle B |
|
|
Mileage run (annual) |
15,000 |
6,000 |
|
Cost of vehicle |
30,000 |
20,000 |
|
Road licence (annual) |
1,000 |
1,000 |
|
Insurance (annual) |
800 |
600 |
|
Garage rent (annual) |
1,000 |
500 |
|
Supervision and salaries |
1,500 |
1,600 |
|
Driver’s wage per hour |
3 |
3 |
|
Cost of fuel per gallon |
3 |
3 |
|
Miles run per gallon |
20 miles |
15 miles |
|
Repairs and maintenance per mile |
1.65 |
2.00 |
|
Tyre allocation per mile |
0.80 |
0.60 |
|
Estimated life of vehicles |
1,00,000 miles |
75,000 miles |
Charge interest at 5% per annum on cost of vehicles. The vehicles run 20 miles per hour on an average.