Raja has been promised a contract to run a tourist car on a 20 km long rate for the chief executive of a multinational firm. He buys a car costing Rs 1,50,000. The annual cost of insurance and taxes are Rs 4,500 and Rs 900, respectively. He has to pay Rs 12,500 p.m. for a garage where he keeps the car when it is not in use. The annual repair are estimated at Rs 4,000. The car is estimated to have a life at 10 years, at the end of which the scrap value is likely to be Rs 50,000.
He hires a driver who is to be paid Rs 300 p.m. plus 10% of the takings ads commission. Other incidental expenses are estimated at Rs 200 p.m. Petrol and oil will cost Rs 100 per 100 km. The car will make four round trips each day. Assuming that a profit of 15% on taking is desired and that the car will be on the road for 25 days on an average per month, what should be charge per round trip?