Question 1 answer
–Assets (nbv) 700,000/630,000 etc.
How can I get these figures?
The question only provides depreciation charge of GBC and TTC.
–increase of average variable cost 126,080(1,260,800*(2.1-2)) during 2007
How can I get 1,260,800?
Many thanks in advance!
The NBV (WDV) of the assets are given you in note 8 of the question.
(in 2006, GBC has premises 300 and vehicles 400)
During 2007, GBC buses travelled 3940 km per day (use table 2 – multiply buses by routes by km and add up). The operate 320 days, which gives a total for the year of 3940 x 320 = 1260800 km (and each km is costing an extra $0.20 for fuel)
John, thank you very much for your quick reply~
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