Raja runs mini bus service in the town and has two vehicles. He furnishes you the following data and wants you to compute the cost per running mile.
|
Vehicle A |
Vehicle B |
|
|
Cost of vehicle |
25,000 |
15,000 |
|
Road licence (per year) |
750 |
750 |
|
Salaries (yearly) |
1,800 |
1,200 |
|
Driver’s wage per hour |
4 |
4 |
|
Cost of fuel per litre |
1.50 |
1.50 |
|
Maintenance per mile |
1.50 |
2.00 |
|
Tyre cost per mile |
1.00 |
.80 |
|
Garage rent per year |
1,600 |
550 |
|
Annual insurance premium |
850 |
500 |
|
Miles run per litre |
6 |
5 |
|
Miles run during the year |
15,000 |
6,000 |
|
Estimated life of vehicles |
1,00,000 miles |
75,000 miles |
Charge interest at 10% p.a. on the cost of vehicle. The vehicle runs 20 miles per hour on an average.