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B. Alora Fleet Transport Company is one of the leading transportation companies in Malaysia and has a complete network of delivery vehicles ready to move
B. Alora Fleet Transport Company is one of the leading transportation companies in Malaysia and has a complete network of delivery vehicles ready to move across the region. With over 20 years of experience in the eet transportation industry, Alora provides services to the construction. petroleum. and renewable fuels industries. The company operates a fleet of 25 vehicles. The information below is related to the annual operating expenditure for the 25 vehicles: 4' The cost of the vehicles is RM4.250.000.00. It has been estimated that the useful life of the vehicles is 5 years with a disposal value of RM10,500.00 per vehicles. The company uses the straight-line method of depreciation. .,. The road tax and insurance incurred is RM3,500.00 per vehicle. -3' For every 50.000 kilometres, the tyres need to be replaced at a cost of RM350.00 per tyres. Every vehicle has 8 tyres. '3 For every 25,000 kilometres, the vehicles need to be serviced which costs the company RM650.00 per vehicle. v The consumption of the fuel is calculated based on 1 litre per 3 kilometres. The cost per litre is RM2.20. *3 On averageI each vehicle travels for 85,000 kilometres in a year. -.- The monthly wages paid to each driver is RM2,500.00. Determine the total vehicle operating cost per kilometre (rounded to two decimal places of RM}. [8 Marks]
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