A transport company has a fleet of three trucks of 10 tonnes capacity each playing in different directions for transport of customer's goods. The trucks run loaded with goods and return empty. The distance travelled, number of trips made and the load carried per day each truck are as under: Truck No. One way Distance Km. 16 40 30 No. of trips per day 4 2 3 Load carried per triplday tonnes 6 3 8 The analysis of maintenance cost and the total distance travelled during the last two years is as under : Year Total distance travelled Maintenance Cost $ 46,050 45,175 1 2 1,60,200 1,56,700 Following are the details of expenses for the year under review: Diesel :$ 10 per litre. Each litre gives 4 km. per litre of diesel on an average. Drivers' Salary: $ 2,000 per month. Licence and Taxes : $ 5,000 per annum per truck. Insurance :$ 5,000 per annum for all the three vehicles. Purchase Price per Truck : $ 3,00,000. Life 10 years. Scrap value at the end of life is $ 10,000. Oil and Sundries : $ 25 per 100 km run. General Overhead: $ 11,084 per annum. The vehicles operate 24 days per month on an average. Required: (i) (ii) (ii) Prepare an Annual Cost Statement covering the fleet of three vehicle Calculate the cost per km. run. Determine the freight rate per tonne km. to yield a profit of 10% on freight. 129
A transport company has a fleet of three trucks of 10 tonnes capacity each playing in different directions for transport of customer's goods. The trucks run loaded with goods and return empty. The distance travelled, number of trips made and the load carried per day each truck are as under: Truck No. One way Distance Km. 16 40 30 No. of trips per day 4 2 3 Load carried per triplday tonnes 6 3 8 The analysis of maintenance cost and the total distance travelled during the last two years is as under : Year Total distance travelled Maintenance Cost $ 46,050 45,175 1 2 1,60,200 1,56,700 Following are the details of expenses for the year under review: Diesel :$ 10 per litre. Each litre gives 4 km. per litre of diesel on an average. Drivers' Salary: $ 2,000 per month. Licence and Taxes : $ 5,000 per annum per truck. Insurance :$ 5,000 per annum for all the three vehicles. Purchase Price per Truck : $ 3,00,000. Life 10 years. Scrap value at the end of life is $ 10,000. Oil and Sundries : $ 25 per 100 km run. General Overhead: $ 11,084 per annum. The vehicles operate 24 days per month on an average. Required: (i) (ii) (ii) Prepare an Annual Cost Statement covering the fleet of three vehicle Calculate the cost per km. run. Determine the freight rate per tonne km. to yield a profit of 10% on freight. 129
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A transport company has a fleet of three trucks of 10 tonnes capacity each playing in different
directions for transport of customer's goods. The trucks run loaded with goods and return empty. The
distance travelled, number of trips made and the load carried per day each truck are as under:
Truck No.
One way
Distance Km.
16
40
30
No. of trips
per day
4
2
3
Load carried per
trip/day tonnes
6
9
3
The analysis of maintenance cost and the total distance travelled during the last two years is
as under :
Year
Maintenance Cost
$
46,050
45,175
Total distance
travelled
1,60,200
1,56,700
1
Following are the details of expenses for the year under review:
Diesel :$ 10 per litre. Each litre gives 4 km. per litre of diesel on an average. Drivers' Salary: $ 2,000
per month. Licence and Taxes : $ 5,000 per annum per truck. Insurance :$ 5,000 per annum for all the
three vehicles. Purchase Price per Truck : $ 3,00,000. Life 10 years. Scrap value at the end of life is $
10,000. Oil and Sundries :$ 25 per 100 km run. General Overhead: $ 11,084 per annum.
The vehicles operate 24 days per month on an average. Required:
(i)
(ii)
(ii)
Prepare an Annual Cost Statement covering the fleet of three vehicle
Calculate the cost per km. run.
Determine the freight rate per tonne km. to yield a profit of 10% on freight.
129
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