Cost per tyre Residual value (%) Expected economic life Written down per year (%) QUESTION 5 R13,400 25% 5 30% (15 MARKS) You have been appointed as a management trainee at Rainbow Carriers and tasked to evaluate the performance of one of their contracts. Use the information in the table below to calculate the key financial ratios according to the four-pillar method, i.e., variable cost per kilometre, fixed cost per vehicle per month, driver cost per driver, and overhead cost per month. Use the table format to complete and present your calculations. Cost element Monthly Variable Vehicle instalments 1,006,000 Fixed 1086009 Driver Overhead Fuel R 1,576,000 7500 Oil R 24,200 24209 Maintenance Excluding personnel R 327,400 377607 63,000 62005 Tyres Insurance of vehicles R 100,600 180007 Licence fees per vehicle R 50,200 50705 Salaries and remuneration: Overhead cost R 594,000 594020 Salaries and remuneration: Fixed cost R 497,000 497002 Salaries and remuneration: Driver cost R 623,800 Uniforms of drivers R 10,900 63340 1090 Uniforms of operational staff R 18.100 18195 Public driver permits R 2.400 2400 Ancillary vehicle cost R 52,100 Depot security Stationery Depot rent R 97,000 52100 97000 R 18,100 18153 R 181,000 000131 Audit fees Total Ratio Kilometres Peak vehicles Drivers R 9.700 9755 R 5,251,500 140,000 16 22 Page 14 of 19 QUESTION 6 FCT5RY3 (10 MARKS) A wine farm near Montagu in the Western Cape has approached Rainbow Carriers for a quotation to transport their export products to the Port of Cape Town. As the new management trainee, the Business Development manager has decided you must lead this project. The information gathered for this project is provided below and must be used to calculate the quotation. Project duration is estimated at 6 days Total kilometres for this work are 2700 km. Fuel consumption for the vehicle is 2.1 litres per km. Price of fuel is R5.50 per litre. Toll fees at the Huguenot Tunnel is R950. Tyre cost is calculated to be R2.05 per km. Sleep-out allowance for the driver R110 per night. Guesthouse cost is R820 including breakfast and dinner (5 nights) The driver earns R110 per hour, and he will be paid for 60 hours. Maintenance cost is calculated to be R1.21 per km. Vehicle standing cost of R850 must be included per day. A profit margin of 20% was considered reasonable and must be included in the price.