# Prepare a quotation for a journey of 100 km and return by adding 10 per cent profit on cost. There…

### Question Description:

A vehicle costs Rs. 15,600 and its life is 5 years, after which its residual value is estimated at Rs. 600. Standing charges per annum are: Insurance Rs. 850, Licence Rs. 750 and Administrative overhead Rs. 2,280. The company’s contribution towards National Insurance Scheme is Rs. 10 per week. The driver is paid Rs. 50 per week of 44 hours, and he is entitled to a fortnight’s paid holiday per annum. For each night spent away from home, the driver is paid an allowance of Rs. 10. Repairs over the life of the vehicle are estimated at Rs. 5,000. Fuel cost Rs. 20 per litre. The estimated consumption of fuel is 20 km per litre. The cost of lubricant is Rs. 1,500 p.a. Estimated kilometreage is 30,000 per year. A set of tyre costs Rs. 1,600 and their expected kilometreage is 16,000. It is estimated that the vehicle will run for 220 days p.a. and depreciation is regarded as a running cost. You are required to Calculate operating cost per kilometre Prepare a quotation for a journey of 100 km and return by adding 10 per cent profit on cost. There is no return load and the journey takes two days