As the Operations Manager of a shipping company, one of your duties is to estimate the voyage cost and revenue for each vessel movement. Given the following information: The vessel 'MV Star Black" is to carry 48,000 tonnes of cargo from the Port of Sunshine to the Port of Babylon for a freight rate of $20 per ton. The loading rate at the Port of Sunshine is 4,000 tonnes per day, the discharging rate at the Port of Babylon is 4,000 tonnes per day and the distance between the two Parts is 5760 nautical miles. At the operating speed of 15 knot, the vessel will consume 35 tonnes of fuel a day from the Port of Sunshine to the Port of Babylon and will also consume 2.6 tonnes of diesel oil per day at the two ports. The port handling charges at the port of loading amount to $64,000 and the port of discharge $74,000. It is the standard practice at the Port of Sunshine to charge $20,000 (lump sum) for tug hire and the Port of Babylon to charge $19,000 (lump sum) to cover pilotage and berthing charges used by MV Star Black during the voyage. Additional information that may be relevant include the following: Running cost of "MV Star Black" is $2,250,000 per annum; Average cost of fuel oil is $300 per tonne and that af diesel oil is $250 per tonne. Operating days for MV Star Black is 250 days per annum, Cost of vessel is $40 million to be paid in ten years (10% per annum). a) Calculate: L iv. V. 960 Total Revenue Total Voyage Cost The Voyage Cost per ton of cargo Total Cost The Total Cost per ton of cargo 30 Marks b) Will you recommend your company to embark on this voyage? Explain your answer using cost and revenue analysis. 10 Marks