Mr. Sensharma is a travelling inspector for the Environmental Protection Agency. He uses his own car and the agency reimburses him for fuel at Rs. 1-80 per kilometre. Mr. Sensharma claims that he needs Rs. 2-20 per kilometre just to break-even. A scrutiny of his expenses by the agency reveals the following : Rs. 120 Oil charge for every 4,800 km. Maintenance (other than oil) every 9,600 km. Yearly insurance (comprehensive with accident benefits) Cost of car with an average residual value of Rs. 60,000 and with a useful life of 3 years Petrol cost is Rs. 5 a litre and Sensharma gets 8 km. per litre in his car. When Sensharma is on the road, he averages 192 km. a day. He works 5 days a week, has 10 days vacation in a year, besides 6 holidays, and spends 15 working days a month in the office. You are required to determine : (a) an equitable rate of reimbursement on the basis of the schedule he presently follows ; and (b) the number of kilometres a year he would have to travel, to break-even at the current rate of reimbursement. 1,800 4,000 1,08,000