Raja automobiles distributes its good to a regional dealer using a single lorry. The dealer’s premises are 40 km away by road. The lorry has a capacity of 10 tonnes and makes the journey twice a day fully loaded on the outward journeys and empty on return journeys. The following information is available for a four weekly period during the year 1991.
|
Petrol consumption |
8 km per km |
|
Petrol cost |
Rs 6.50 per litre |
|
Oil |
Rs 50 per week |
|
Driver’s wages |
Rs 200 per week |
|
Repairs |
Rs 50 per week |
|
Garage rent |
Rs 75 per week |
|
Cost of lorry |
80,000 km |
|
Insurance |
Rs 3,250 p.a. |
|
Cost of tyres |
Rs 3,125 |
|
Life of tyres |
25,000 km |
Estimated sale value of Rs 25,000 lorry at end of its life. Vehicle licence cost Rs 650 p.a. Other overhead rate Rs 20,800 p.a. The lorry operates on a five day week.
Required:
- A statement to show the total cost of operating the vehicle for a four weekly period analysed into running costs and fixed costs.
- Calculate vehicle cost per km and per ton km