From the following data relating to two vehicles X and Y, you are required to compute the
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From the following data relating to two vehicles X and Y, you are required to compute the cost per running km:
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Supervision salary Km run (annual) Cost of vehicle Road licence (annual) Insurance (annual) Garage rent (annual) Vehicle X Vehicle Y 6,000 10,000 Rs. 1,00,000 Rs. 80,000 Rs. 1,000 Rs. 600 Rs. 400 Rs. 2,000 Rs. 1,000 Rs. 800 Rs. 700 Rs. 2,000 Driver's wages per hour Rs. 6 Rs.6 Cost of fuel per hour 6 6 Km run per litre 20 km Repairs and maintenance per km Rs. 2.00 15 km Rs.2.50 Tyre allocation per km Rs. 1.00 Estimated life of vehicles 1,00,000 km Rs. 0.80 80,000 km Charge interest @ 5 per cent p.a. on cost of vehicles. The vehicles run 20 km on an average. Statement of Cost per Running km Particulars Vehicle X Rs. Vehicle Y Rs. Step A: Fixed Costs per annum: (i) Road licence 1,000 1,000 (ii) Garage rent 700 400 (iii) Insurance 800 600 (iv) Supervision salary 2,000 2,000 (v) Interest @ 5% p.a. 5,000 4,000
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