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a transport company operates a regular delivery service from its warehouse in kitwe to solwezi, the total annual kilometres covered(including 100 outward and return journeys) being 1925 kilometres per 10-ton vehicle. for the outward journey the vehicle is always fully loaded and in addition there is a regular demand for return loads of 4000 tons per vehicle per annum. the standard charge to customers is k8000 per ton-km. the costs of operating this service are as follows:
vehicle standing charges……………………………..k1 440 000
drivers wages, icluding overtime………………….k27 360 000
vehicle running costs…………………………………k800 per kilometre
the company is willing to pay a bonus to drivers for obtaining additional return loads of up to 30% of any addtion profit
requierd
(a) what profit would be earned per vehicle without any addition return load?
(b)what annual bonus would be payable to a driver who consistently obtained a 5-ton return load?
what annual bous would be payable if the additional 5-ton return load involved a detour of 40 kilometres(on which no income would be earned) and k360000 additional overtime pay on each occation?Please do not simply type out an entire question and expect someone to answer it for you.
You must have an answer in the same book in which you found the question, so ask what specifically is causing you a problem.
(And this is certainly not a Paper F5 question – the chances of being asked something like this are virtually zero.)
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