Working Notes: 1. Tonne-km per month - 6 tonnes x 50 km x 25 days = 7,500 tonne - km. (5 tonnes on outward trip and one tonne on return trip) 2. It is assumed that the truck makes only one trip per day 3. The scrap value of the truck is assessed to be nil. Depreciation - 4,50,000/10=45,000 Union Transport Company Statement showing operation costs Cost per month Per tonne Km 5,000 2,500 400 200 400 8,500 1.133 Fixed Costs: Driver's wages Cleaner's wages Insurance Taxes General supervision Variable Costs: Diesel, oil, grease , Depreciation Repairs and maintenance (a) Operating Costs (b) Freight rate: Cost per tonne-km Profit per tonne km 7,500 3,750 5,000 16,250 24.750 2.167 3.300 3.30 3.30 6.60 Freight per trip (both ways) 1.980. 125 20 Hp unit is required to drive a pump for watering an agricultural farm. Two plans A and B for supplying are under consideration : A B Purchase and installation 3 10,000 34,000 Life in years 4 4 Salvage value 1,000 Interest on capital 10% 10% Maintenance per year 3,000 Maintenance per hour 0.50 Operating wages per hour 20.20 30.60 Power per hour 31.00 Fuel and oil per hour 2.00 Assuming that million litres of water is to be pumped in a year and that the pump will pump 1,000 litres in an hour, find out the cost per 1,000 litres of water under both the plans and find out the number of hours for which the operating costs of both the machines will be even