Union transport company supplies the following details in respect of a truck of 5 tonne capacity.
|
Cost of truck—Rs 90,000 |
|
Estimated life—10 years |
|
Diesel, oil, grease—Rs 15 per trip each day |
|
Repairs and maintenance—Rs 500 p.m. |
|
Driver’s wages—500 p.m. |
|
Cleaner’s wages—250 p.m. |
|
Insurance—Rs 4,800 per year |
|
Tax—Rs 2,400 per year |
|
General supervision charges—Rs 4,800 per year |
The track carries goods to and from the city covering a distance at 50 km 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 workout:
- Operating cost tonne km
- Rate per tonne trip that the company should charge if a profit of 50% on freight is to be earned.