Can anyone answer the below qestion-little urgent

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After working for 30 years, Ramjee Somjee Dutt opted for VRS and started a courier company and did very well in the first four years. He was now looking for expansion of his business and decided to venture into Road transportation business between Chennai and Mumbai and Mumbai and Delhi as he felt that he could do well on this line. However before taking a final decision he hires your Management Consultant firm formed by yourself. He has requested you to work out the Price to quote his clients for these two routes considering the costs involved. He expects to earn a minimum profit of Rs 1000 per day per truck after meeting all expenses. Your analysis of market conditions tell you the following:
 
Vehicle cost Rs 7 lacs Depreciation 15 % Maintenance costs per day Rs 150 Drivers monthly Salary Rs
5000 : Attendants monthly salary Rs 3000 . Misc expenses Rs 200 per day. Driver allowance is Rs 125
per day and attendant gets Rs 75. Diesel cost per liter is Rs 25 and the vehicle gives an average mileage
of 4 km to a liter. The Financial institutions offer loans at 10 % interest pa, which Ramjee has been
negotiating. It has been observed that on an average the vehicle covers 400 km per day. The distance
between Mumbai to Delhi is 1500 km and Mumbai to Chennai is 1350 km. The driver gets rest day in
Mumbai only for one day after they return from any trip.
Replies (1)

 

Sr No Cost M-D-M M-C-M
1 Vehicle                     1                          1
2 Days pa                  360                       360
3 Interest on vehicle             70,000                  70,000
4 Depreciation on vehicle           105,000                 105,000
5 Round Trip pa    
  M-D-M 8 days trip and one days rest(320 days trip 40 days rest)                   40  
  M-C-M 7 days trip and one day rest(315 days trip 45 days rest)                           45
6 Maintenance cost pa (320*150,315*150)             48,000                  47,250
7 Drivers salary pa             60,000                  60,000
8 Attendants salary pa             36,000                  36,000
9
Misc expenses (320*200, 315*200)
            64,000                  63,000
10 Drivers allowance pa (320*125, 315*125)             40,000                  39,375
11 Attendants salary pa (320*75, 315*75)             24,000                  23,625
12 Total distance covered (400 Km per day for 320 days and 315 days)           128,000                 126,000
13 Total diesel required (Distance covered /4 Km per liter)             32,000                  31,500
14 Total diesel cost (Point 13*Rs. 25per liter)           800,000                 787,500
15 Total cost (Point 3+4+6+7+8+9+10+11+14)         1,247,000              1,231,750
16 Profit pa (1000 per day for 320 days and 315 days)           320,000                 315,000
17 Total cost plus profit         1,567,000              1,546,750
  Total cost per trip (point 17/ point 5)             39,175                  34,372
       
  Assumption    
  1 It is assumed that Mr Ramjee Somjee Dutt can get transportation order throughout year    
  2 Mr Ramjee Somjee Dutt buys two vehicle for each route    
  3 Mr Ramjee Somjee Dutt is able to get loan from financial institutions for both vehicle    
  4 All per day expenses are incurred only when vehicle runs    


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