Pallavan Transport Corporation runs the following fleet of buses in a particular area of Madras for 30 days in a month: 25 buses of 50 passenger capacity, On an average, each bus makes 10 trips a day covering a distance of 8 km in each trip with 75% of seats occupied. Generally, 10% of buses are kept away from the roads for repairs.
|
Rs |
|
|
Monthly expenses: |
|
|
Rent |
2,500 |
|
Road tax |
500 |
|
Salary of chief operating manager |
1,500 |
|
Salary of three assistant managers |
800 each |
|
Salary of four supervisors |
400 each |
|
Wages of 30 cleaners |
100 each |
|
Wages of 25 drivers |
240 each |
|
Wages of 25 conductors |
200 each |
|
Consumable stores |
4,500 |
|
Diesel |
34,000 |
|
Lubricants |
5,500 |
|
Replacement of tyres |
1,750 |
|
Miscellaneous |
2,750 |
|
Depreciation |
6,500 |
|
Work shop expenses |
3,500 |
Calculate the cost per passenger km of operating the service.