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A transport business has 6 lorries in operation, 5 days a week for 50 weeks a year.
Each vehicle is expected to make 4 journeys a day, delivering an average load of 5 tonnes to each customer. the average customer is located 25 km from the transport headquarters. fuel and other variable running costs per km travelled are budgeted to be $.50. Other fixed running costs amount to 4225000 per annum. What is the standard cost per tonne km?
Can I see a calculation for this please?The total number of tonne/km is 6 (lorries) x 5 (days) x 50 (weeks) x 4 (journeys) x 5 (tonnes) x 25 (km)
The total costs are 4225000 + (0.5 x km travelled), and km travelled per year are
6 (lorries) x 5 (days) x 50 (weeks) x 4 (journeys) x 25 (km)Divide the total cost by the total tonne/km, and there you have it 🙂
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