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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 $225000 per annum. What is the standard cost per tonne km?
Can I see a calculation for this please?
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