A truck driver, named Raju, owns a truck which can carry 5 tonne of material at a time. Raju has no other truck and he has listed himself with…

A truck driver, named Raju, owns a truck which can carry 5 tonne of material at a time. Raju has no other truck and he has listed himself with various carriage services agencies, to offer his services. He gets his work from these agencies and they pay him as per the load and the distance. Raju has one condition that he must be paid for at least 75% of his total capacity. Raju charges freight at 10 per tonne-km. He received a work contract, from one of these agencies, where he has to take 4 tonne from Delhi in the morning and drop it off at Chandigarh. After that he will move to Ludhiana, where he again loads 3 tonne and come back to Delhi by evening. This contract is for nearly 3 months. Raju is excited to accept the order but it is not physically possible for Raju to complete this project alone. He decides to hire a helper cum driver who will assist him in this work contract and will also drive in turns with Raju. Thus, such a long contract will be managed comfortably. This helper will take - 15,000 per month. The contract will start from 15th June, 2024 and will run till 14th September, 2024. Throughout this time period there are only 2 days holidays, both falling in August (1 for Independence Day and 1 for Raksha Bandhan). Some information about the Truck and its associated costs: Truck was purchased on 1st April, 2021 by taking a loan of 20,00,000 @ 10% p.a. from Punjab national bank for 5 years. Raju mortgaged jewellery of his wife to get this loan.Every year-end he has to pay - 5,27,595 as instalment.Scrap value after 10 years is expected to be - 500,000.Depreciation is charged on straight-line method.Services and maintenance charges each month is 80,000.Truck runs on diesel and its running average is 8kms/ litre.Diesel cost per litre: June 80.30 July 80.50 August 81.25 September 80.90 Yearly interest amount of loan and yearly depreciation is charged to a work contract on the basis of days worked in a year in the contract. Distance between these places: (1) Delhi to Chandigarh = 250 kms (2) Chandigarh to Ludhiana = 100 kms (3) Ludhiana to Delhi = 150 kms Answer the following questions (MCQs 1 to 5):