Question 5:

You are given the data below:

Data	RM
Cost of motor car	60,000
Trade-in price after five years or 60,000 km is expected to be	15,000
Maintenancesix monthly service costing (fixed)	600
Spares / replacement parts, per 1,000 km (variable)	200
Vehicle license, per annum (fixed)	800
Insurance per annum (fixed)	1,500
Tyre replacements after 19,000 km, four at RM375 each (fixed)
Petrol per litre (variable) Average mileage from one litre is 20 km	2.00

Required:

a. From the above data, you are required to prepare a schedule to be presented to management showing for the mileage of 5,000, 10,000, 15,000 and 20,000 km per annum:

i. Total variable cost

ii. Total fixed cost

iii. Total cost

iv. Variable cost per mile

v. Fixed cost per mile

vi. Total cost per mile

b. Plot the information given in your answer to (a) above for total variable cost, total fixed cost, total cost and total cost per km