Raj Travels is a transport company that runs a fleet of 50 taxis that are used...

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Raj Travels is a transport company that runs a fleet of 50 taxis that are used for short tours from Pune to Mulshi. The taxis have a fixed route covering 60 kms one way. Each taxi can cover 1 trip in a day, with a maximum of 4 passengers. The average occupancy of the taxis is 75% of the capacity, at an average of 20 days per month. Other cost details are as below: Cost head Cost of each taxi Scrap value at the end of its life Life of each taxi Garage rent Annual maintenance / cleaning charges Salary per driver Insurance for each taxi Miscellaneous expenses for the company Cost of petrol Mileage - Kilometers per litre Amount Rs. 600,000 Rs. 50,000 100,000 km Rs. 60,000 per month Rs. 15,000 for each taxi Rs. 25,000 per month Rs. 6,000 per annum Rs. 50,000 per month Rs. 110 per litre 14 km If the company would like to earn a profit of 20% on the total revenue, determine the following: a. Total passenger kms travelled in a month b. Fare to be charged per passenger km C. Fare to be charged for a round trip in a day Raj Travels is a transport company that runs a fleet of 50 taxis that are used for short tours from Pune to Mulshi. The taxis have a fixed route covering 60 kms one way. Each taxi can cover 1 trip in a day, with a maximum of 4 passengers. The average occupancy of the taxis is 75% of the capacity, at an average of 20 days per month. Other cost details are as below: Cost head Cost of each taxi Scrap value at the end of its life Life of each taxi Garage rent Annual maintenance / cleaning charges Salary per driver Insurance for each taxi Miscellaneous expenses for the company Cost of petrol Mileage - Kilometers per litre Amount Rs. 600,000 Rs. 50,000 100,000 km Rs. 60,000 per month Rs. 15,000 for each taxi Rs. 25,000 per month Rs. 6,000 per annum Rs. 50,000 per month Rs. 110 per litre 14 km If the company would like to earn a profit of 20% on the total revenue, determine the following: a. Total passenger kms travelled in a month b. Fare to be charged per passenger km C. Fare to be charged for a round trip in a day

Answer rating: 100% (QA)

To determine the total passenger kilometers traveled in a month we need to calculate the total kilometers traveled by each taxi in a month and then mu... View the full answer