A transport company supplies the following details in respect of a truck of five ton capacity:
|
Cost of truck |
Rs 1,20,000 |
|
Estimated life |
10 years |
|
Scrap value at the end of life |
Rs 6,000 |
|
Diesel, oil, grease |
Rs 25 per trip each way |
|
Repairs and maintenance |
Rs 500 p.m. |
|
Driver’s wage |
Rs 600 p.m. |
|
Cleaner’s wage |
Rs 250 p.m. |
|
Insurance |
Rs 4,800 p.a. |
|
Tax |
Rs 2,400 |
|
General supervision charges |
Rs 6,000 p.a. |
The truck carries goods to and from the city covering a distance of 50 miles each way.
On outward trip freight is available to the extent of full capacity and on return 20% of capacity.
Assuming that the truck runs on an average 25 days a month, work out:
- Operating cost per tonne mile
- Rate per tonne per trip that the company should charge if a profit of 50% on freightage is to be earned.