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Arlington Town uses an Internal Service Fund to account for its motor pool activities. Based on the following information, calculate the price per trip that
Arlington Town uses an Internal Service Fund to account for its motor pool activities. Based on the following information, calculate the price per trip that the Motor Pool Internal Service Fund needs to charge users during calendar year 2018 to break even: The Motor Pool uses three 6-passenger vans, each costing $45,000 and each esilinaixxl o have a 5-year life when ihey were acquired in 2011. Driver salaries: The Motor Pool has a driver-administrator, who earns $45,000 a year, and a driver who earns $35,000. The town uses a rate of 40 percent (to cover benefits, including pensions) for planning purposes Insurance In 2017, the town purchased a 2-year automobile accident policy at a cost of $6,000 Fuel and maintenance costs Based on experience, the driver-administrator estimates that total fuel and maintenance costs for the year will be $8,000 Billing units: To simplify its record keeping, the Motor Pool charges a fixed price per trip. Arlington's budget office estimates it will provide 750 trips to the towns departments in 2018
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