Mr Raj has been promised a contract to run a cab service on a 25-km-long route for the chief executive of a multinational fi rm. He buys a car costing Rs. 3,00,000. The annual cost of insurance and taxes are Rs. 9,000 and Rs. 1,000, respectively. He has to pay Rs. 1,000 per month where he keeps the car when it is not in use. The annual repair costs are estimated at Rs. 5,000. The car is estimated to have a life of 10 years at the end of which the scrap value is likely to be Rs. 60,000.

He hires a driver who is to be paid Rs. 500 per month plus 10 per cent of the takings as commission. Other incidental expenses are estimated at Rs. 250 per month.

Fuel will cost Rs. 200 per 100 km. The car will make four round trips each day. Assuming that a profi t of 20 per cent on takings is desired and that the car will be on the road for 25 days on an average per month, what should be the charge per round trip?