Delhi Transport Company has been given a route of 20 km long to run a bus. The bus costs the company a sum of Rs 70,000. It has been insured at 3% p.a. and the annual tax will amount to Rs 1,500. Garage rent is Rs 100 p.m. Actual repairs will be Rs 1,500 and the bus is likely to last for 5 years.
The driver’s salary will be Rs 150 per month and the conductor’s salary will be Rs 100 per month in addition to 10% of the takings as commission (to be shared by the driver and the conductor equally). Cost of stationery will be Rs 50 p.m. Manager cum accountant’s salary is Rs 400 p.m.
Petrol and oil will be Rs 25 per 100 km. The bus will make 3 round trips carrying on the average 40 passengers on each trip. Assuming 15% profit on takings, calculate the bus fare to be charged from each passenger. The bus will run on an average 25 days in a month.