XYZ Highway Toll Plaza Limited operates a toll plaza on a 100 km highway and collects tolls from vehicles passing through the plaza. The company has…

XYZ Highway Toll Plaza Limited operates a toll plaza on a 100 km highway and collects tolls from vehicles passing through the plaza. The company has estimated that every year a total of 60 lakh vehicles (60% Passenger vehicles, 15% Heavy Commercial Vehicles and rest are Buses) will be using the highway during the 15 years toll collection tenure. Toll Operating and Maintenance cost for the month (30 days in a month) are as follows: (1) Personnel Costs (Salaries): Collection Personnel: Number of shifts: 3Number of toll collection personnel per shift: 10Salary per day per person:800 Supervisors: Number of shifts: 2Number of supervisors per shift: 3Salary per day per supervisor:1,200 Security Personnel: Number of shifts: 3Number of security personnel per shift: 10Salary per day per security person:500 Toll Plaza Manager: Number of shifts: 2Number of managers per shift: 1Salary per day per manager:2,000 (2) Other Annual costs: Electricity 14,40,000 Telephone & Communication Cost 2,40,000 Maintenance Cost 60,00,000 Depreciation and amortization 12,00,00,000 Insurance and safety cost 15,00,000 Interest expense incurred for servicing term loans 7,83,48,000 The toll rate per vehicle is to be fixed as under: Heavy commercial vehicles 500% of toll rate for Passenger vehicle Bus 400% of toll rate for Passenger vehicle Required: (i) Calculate the total cost per month for the toll plaza. (ii) The company aims to achieve a 20% profit margin over total takings. Calculate the toll rate to be charged for each type of vehicle. (Assume a 360 days year)