A mini-bus, having a capacity of 32 passengers, operates between two places - 'A' and 'B'. The distance between the place 'A' and place 'B' is 30…

Operating Cost Statement Particulars Total Cost Per annum (₹) A. Fixed Charges: Insurance 15,600 Garage rent (₹ 2,400 × 4 quarters) 9,600 Road Tax 5,000 Salary of operating staff (7,200 × 12 months) 86,400 Depreciation 68,000 Total (A) 1,84,600 B. Variable Charges: Repairs (4,800 × 4 quarters) 19,200 Tyres and Tubes (₹ 3,600 × 4 quarters) 14,400 Diesel {(1,80,000 km. ÷ 5 km.) × 13} 4,68,000 Oil and Sundries {(1,80,000 km. ÷ 100 km.) × 22} 39,600 Total (B) 5,41,200 Total Operating Cost (A+B) 7,25,800 Add: Passenger tax (Refer to WN-1) 3,01,275 Add: Profit (Refer to WN-1) 3,42,359 Total takings 13,69,434 Calculation of Cost per passenger kilometre and one way fare per passenger: Cost per Passenger-Km. = (Total Operating Cost) / (Total Passenger-Km.) = 7,25,800 / 40,32,000 Passenger -Km. = 0.18 One way fare per passenger = (Total Takings) / (Total Passenger -Km.) × 30Km. = 13,69,434 / 40,32,000 Passenger-Km. × 30km = 10.20 Working Notes: Let total taking be X then Passenger tax and profit will be as follows: X = 7,25,800 + 0.22 X + 0.25X X – 0.47 X = 7,25,800 X = 7,25,800 / 0.53 = 13,69,434 Passenger tax = 13,69,434 × 0.22 = 3,01,275 Profit = 13,69,434 × 0.25 = 3,42,359Total Kilometres to be run during the year = 30 km.x 2 sides × 10 trips × 25 days × 12 months = 1,80,000 KilometresTotal passenger Kilometres = 1,80,000 km. × 32 passengers × 70% = 40,32,000 Passenger-km.