Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Matrix Inc. is having a fleet of 10 delivery vehicles and operating as a private carrier. It wants you to calculate cost per mile for

image text in transcribed

Matrix Inc. is having a fleet of 10 delivery vehicles and operating as a private carrier. It wants you to calculate cost per mile for each delivery vehicle. Cost of trucks 75,000$ Manager Salary 30,000$ per month Accountant Salary 25,000$ per month Co-driver Salary 20,000$ per month Mechanic Salary 8,000$ per month Garage Rent 6,000$ per month Driver Salary 25,000$ per month per truck Annual Repairs 10,000$ per truck Insurance 5.5% Total Life of a truck is 70,00,000 Kms. Matrix operates 30 days in a month and each truck covers 70 Kms of a distance (one way). Each truck makes 3 round trips in a day. Petrol consumption is one litre for every 10 kms @ 0.50 $ per litre. Oil and sundry expenses are 13.50 $ per 100 Kms. Assume cost to be 50% of the taking and tax to be 25% of the taking. Calculate: a. Freight amount b. Effective Kms c. Profit d. Cost per Kms. Also provide your Analysis (10 Points)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Knowledge Assets And Knowledge Audits Working Methods For Knowledge Management

Authors: Pawan Handa, Jean Pagani, Denise Bedford

1st Edition

1789737745, 978-1789737745

More Books

Students also viewed these Accounting questions

Question

Connect with your audience

Answered: 1 week ago