Calculate Fixed and Variable cost and the freight rate for your company Use the following information: Driver Wage Cost ( Year) Social Benefits Overtime Hour) Incentive ( km ) $65 000 20% $45 10 cents Costs/year: # Operating cost per Km ( fuel, repair, maintenance) .....$3 # Depreciation ....... ..$20 000 # Tolls and taxes $15 000 # Licences, Permits. $10 000 # Insurance $10 000 # Lodging and Meals... ...$25000 # Sorting....... $75 000 # Management. $100 000 # IT Systems.... $50 000 # Parking.......... ...... $20 000 # Terminal Administration represent 20% of fixed cost Business Data's: Working hours (regular) - 2400 hours per driver & truck Average Overtime - 200 hours per driver & truck Total Kilometers - 120 000 km per driver & truck 3000 PUD per year 4 Shipments average per PUD Staff: 3 drivers 3 trucks Questions: A. Calculate the Total Fixed and Variable Cost for the Transport. Create a table and use Excel formulas for the calculations. B. Calculate the freight rate per km C. What is the total (F+V) cost and rate per km to the client for Profit margin 10% D. What is the total (F+V) cost and rate per minute to the client for Profit margin 10% E. By using the rate per minute with 10% margin, calculate the transportation cost for the following shipments: i) transportation service of 65 min ii) transportation service of 45 min Calculate Fixed and Variable cost and the freight rate for your company Use the following information: Driver Wage Cost ( Year) Social Benefits Overtime Hour) Incentive ( km ) $65 000 20% $45 10 cents Costs/year: # Operating cost per Km ( fuel, repair, maintenance) .....$3 # Depreciation ....... ..$20 000 # Tolls and taxes $15 000 # Licences, Permits. $10 000 # Insurance $10 000 # Lodging and Meals... ...$25000 # Sorting....... $75 000 # Management. $100 000 # IT Systems.... $50 000 # Parking.......... ...... $20 000 # Terminal Administration represent 20% of fixed cost Business Data's: Working hours (regular) - 2400 hours per driver & truck Average Overtime - 200 hours per driver & truck Total Kilometers - 120 000 km per driver & truck 3000 PUD per year 4 Shipments average per PUD Staff: 3 drivers 3 trucks Questions: A. Calculate the Total Fixed and Variable Cost for the Transport. Create a table and use Excel formulas for the calculations. B. Calculate the freight rate per km C. What is the total (F+V) cost and rate per km to the client for Profit margin 10% D. What is the total (F+V) cost and rate per minute to the client for Profit margin 10% E. By using the rate per minute with 10% margin, calculate the transportation cost for the following shipments: i) transportation service of 65 min ii) transportation service of 45 min
