Question No-3

Mr. Mahmood Iqbal Halim owns 5 buses. Here is the information regarding the operation The bus will make 3 round trips for carrying on the average 40 passengers in each trip. Assume 15% profit on fare. The bus will work on the average 25 days in a month. The total distance travelled by the bus during the month was 3000 k.m. Calculate fare for passenger-km. of the bus:

Cost of the bus	18,00,000
Insurance charges	3% p.a.
Manager-cum accountant's salary	96,000 p.a.
Annual Tax	50,000
Garage Rent	2,500 p.m.
Annual repair & maintenance	1,50,000
Expected life of the bus	15 years
Scrap value at the end of 15 years	1,20,000
Driver's salary	45,000 per quarter
Conductor's salary	12,000 p.m.
Stationery	1500 per quarter
Engine oil, lubricants (for 1200 km.)	2,500
Diesel and oil (for 10 km.)	52
Commission to driver	10% of fare
Route distance	20 km long