Bushy Transport Services (Pty) Ltd. manages a fleet of delivery trucks. The company transports goods and services with specific focus in the SADC countries. In the past, the company had a challenge of separating semi-variable costs between variable and fixed costs. The company's variable cost per unit (one delivery) consists of the cost of petrol, oil, maintenance, and tyres whilst the fixed costs consist of the vehicle lease payments.

A study done by the company in the past indicated that if the company does 30 000 deliveries during a year, the average semi-variable cost is R5 per delivery whilst if the company makes 15 000 deliveries in a year, the average semi-variable costs increase to R6 per delivery.

Assuming that the company makes 45 000 deliveries in a year. Calculate the amount of total cost for the year.

a.

R60 000

b.

R180 000

c.

R30 000

d.

R210 000