Question

# You are the newly appointed transport manager for Super Trucking $Pty$ Ltd, which operates as a logistics service provider for various industries throughout southern Africa. One of these vehicles is a 4x2 Rigid Truck and drawbar trailer that covers 48,000 km per year. Use the assumptions below to answer the following questions $show all calculations$: Overheads R 176,200 Cost of capital $% of purchase price per annum$ 11.25% Annual License Fees—Truck R 16,100 Driver Monthly cost R 18,700 Assistant Monthly cost R 10,500 Purchase price: - Truck R 1,130,000 Depreciation: straight line method Truck residual value 25% Truck economic life $years$ 5 Purchase price: Trailer R 370,000 Tyre usage and cost $c/km$ 127 Trailer residual value 0% Trailer economic life $years$ 10 Annual License Fees—Trailer R 7,700 Fuel consumption $liters/100km$ 22 Fuel price $c/liter$ 2053 Insurance $% of cost price$ 7.5% Maintenance cost $c/km$ 105 Distance travelled per year $km$ 48000 Truck $tyres$ 6 Trailer $tyres$ 8 New tyre price $each$ R 13,400 Lubricants $% of fuel cost$ 2.5% Working weeks 50 Working days 5 days / week Profit margin 25% VAT 15% Q1. Calculate the annual total vehicle costs $TVC$

153

likes
766 views

## Answer to a math question You are the newly appointed transport manager for Super Trucking $Pty$ Ltd, which operates as a logistics service provider for various industries throughout southern Africa. One of these vehicles is a 4x2 Rigid Truck and drawbar trailer that covers 48,000 km per year. Use the assumptions below to answer the following questions $show all calculations$: Overheads R 176,200 Cost of capital $% of purchase price per annum$ 11.25% Annual License Fees—Truck R 16,100 Driver Monthly cost R 18,700 Assistant Monthly cost R 10,500 Purchase price: - Truck R 1,130,000 Depreciation: straight line method Truck residual value 25% Truck economic life $years$ 5 Purchase price: Trailer R 370,000 Tyre usage and cost $c/km$ 127 Trailer residual value 0% Trailer economic life $years$ 10 Annual License Fees—Trailer R 7,700 Fuel consumption $liters/100km$ 22 Fuel price $c/liter$ 2053 Insurance $% of cost price$ 7.5% Maintenance cost $c/km$ 105 Distance travelled per year $km$ 48000 Truck $tyres$ 6 Trailer $tyres$ 8 New tyre price $each$ R 13,400 Lubricants $% of fuel cost$ 2.5% Working weeks 50 Working days 5 days / week Profit margin 25% VAT 15% Q1. Calculate the annual total vehicle costs $TVC$

Neal
4.5
To calculate the annual total vehicle costs $TVC$, we need to add up all the costs associated with the truck and trailer. Here are the calculations: Truck costs: Depreciation: The purchase price of the truck is R 1,130,000, and the residual value is 25%. Therefore, the depreciation per year is $1,130,000 * (1 - 0.25$) / 5 = R 678,000. Interest: The cost of capital is 11.25% of the purchase price per annum. Therefore, the interest per year is 0.1125 * 1,130,000 = R 127,125. License fees: The annual license fees for the truck are R 16,100. Driver cost: The monthly driver cost is R 18,700, which translates to an annual cost of 18,700 * 12 = R 224,400. Assistant cost: The monthly assistant cost is R 10,500, which translates to an annual cost of 10,500 * 12 = R 126,000. Tyre cost: The cost of tyres per km is 127 cents. The truck travels 48,000 km per year, and it has 6 tyres. Therefore, the total tyre cost per year is 127 * 48,000 * 6 = R 36,864. Maintenance cost: The maintenance cost per km is 105 cents. The truck travels 48,000 km per year. Therefore, the total maintenance cost per year is 105 * 48,000 = R 5,040. The total cost of the truck per year is: 678,000 + 127,125 + 16,100 + 224,400 + 126,000 + 36,864 + 5,040 = R 1,213,529 Trailer costs: Depreciation: The purchase price of the trailer is R 370,000, and the residual value is 0%. Therefore, the depreciation per year is $370,000 * (1 - 0$) / 10 = R 37,000. License fees: The annual license fees for the trailer are R 7,700. Tyre cost: The cost of tyres per km is 127 cents. The trailer travels 48,000 km per year, and it has 8 tyres. Therefore, the total tyre cost per year is 127 * 48,000 * 8 = R 48,768. Maintenance cost: The maintenance cost per km is 105 cents. The trailer travels 48,000 km per year. Therefore, the total maintenance cost per year is 105 * 48,000 = R 5,040. The total cost of the trailer per year is: 37,000 + 7,700 + 48,768 + 5,040 = R 98,508 Therefore, the annual total vehicle costs $TVC$ is: 1,213,529 + 98,508 = R 1,312,037 Hence, the annual total vehicle costs $TVC$ is R 1,312,037
Frequently asked questions $FAQs$
What is the value of log$base 5$ 125?