Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Prakash Transport Company has been given a route of 20 KMs long to run a bus. The bus costs the company a sum of Rs.

Prakash Transport Company has been given a route of 20 KMs long to run a bus. The bus costs the company a sum of Rs. 50,000. It has been insured at 3% per annum and the annual tax will amount to Rs. 1,000, garage rent is Rs. 100 per month. Annual repairs will be Rs. 1,000 and the bus is likely to last for 5 years
The driver’s salary will be Rs. 150 per month and the conductor’s salary will be Rs. 100 per month in addition to 10% of the takings as commission (to be shared by the driver and conductor equally). Cost of stationery will be Rs. 50 per month. Manager-cum-accountant’s salary is Rs. 350 per month. Petrol and oil will be Rs. 25 per 100 KM. The bus will make 3 round trips every day carrying on an average 40 passengers on each trip. 

Assuming 15% profit on takings, calculate the bus fare to be charged from each passenger. The bus will run on an average 25 days in a month.

Step by Step Solution

3.52 Rating (152 Votes )

There are 3 Steps involved in it

Step: 1

The bus fare to be charged from each passenger is Rs 1260 Explanation The fare that nee... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Finance A Focused Approach

Authors: Michael C. Ehrhardt, Eugene F. Brigham

4th Edition

1439078084, 978-1439078082

More Books

Students also viewed these Economics questions

Question

What factors might cause the interest rates to differ? Explain.

Answered: 1 week ago

Question

What factors might cause the interest rates to differ? Explain.

Answered: 1 week ago

Question

What do you plan on doing upon receiving your graduate degree?

Answered: 1 week ago