Calculate the charge to be made by the person


Problem:

A person owns air condition bus, which runs between Delhi and Chandigarh and back for 10 days in a month. The distance between Delhi and Chandigarh is 150 miles. The bus completes the trip from Delhi and Chandigarh and will be back on the same day.

The bus goes to Agra for another 10 days. The distance between Delhi and Agra is 120 miles. This trip is also completed on the same day. For the rest of the 4 days of its operation, it runs in the local city. Daily distance covered is 40 miles.

Calculate the charge to be made by the person when he wants to earn profit of 33 1/3% on his takings. The other information is:

Cost of the bus

Rs 1,00,000

Depreciation

20% p.a.

Salary of driver

Rs 650 p.m.

Salary of conductor

Rs 650 p.m.

Salary of accountant

Rs 360 p.m.

Insurance

Rs 1,680 p.a.

Diesel consumption 4 miles per litre costing Rs 3 per litre


Road tax

Rs 600 p.a.

Lubricant

Rs 20 per 100 miles

Repairs and maintenance

Rs 500 p.a.

Permit fee

Rs 284 p.m.

Normal capacity

50 per sons

The bus generally occupies 90% of the capacity when it goes to Chandigarh, 80% when it goes to Agra. It is always full when it runs within the city. Passenger tax is 20% of his net takings.

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Accounting Basics: Calculate the charge to be made by the person
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