QUESTION TWO

Kabwe, a food retailer, decided to start a home delivery service from 1 November 2005. As Kabwe had no vehicles suitable for use by the new service, it purchased three small delivery vehicles to enable him to provide the service. The invoice for the vehicles included the following details:

K

Cost price per vehicle 12,000

Less: Trade discount (2,400)

9,600

Delivery charge 250

VAT 2,670

One vehicle 17,020

Three vehicles 51,060

1 years insurance for the three vehicles 3,900

Total cost of three vehicles 54,960

Required

i. Determine the cost per van and the total cost of all the vans