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)

Expert avatar
Neal
4.5
103 Answers
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)
How many diagonals can be drawn from one vertex of a polygon with n sides?
+
Question: Evaluate the limit as x approaches 3 of (2x^2 + 4x - 6) / (x - 3).
+
Question: What is the derivative of the function F(x) = ∫[0 to x] f(t)dt, where f(x) = 3x^2 - 2x + 5?
+
New questions in Mathematics
I want to divide R$ 2200.00 between Antônio, Beto and Cássia, so that Beto receives half from Antônio and Cássia receives a third of Beto. Under these conditions, how much more will Beto receive than Cássia?
the value of sin 178°58'
A car that starts from rest moves for 11 min, reaching a speed of 135 km/h, calculate the acceleration it had
3x+5y=11 2x-3y=1
The ratio of tomatoes to red apples is 2:5. If there are 20 tomaoes in the garden, how many red apples are there?
v Is the following statement a biconditional? If Shannon is watching a Tigers game, then it is on television.
2x+4x=
Nice's central library building is considered one of the most original in the world, as it is a mix between a sculpture and a work of habitable architecture. It was called La Tête Carrée and is made up of part of a bust that supports a cube divided into five floors. It is known that the building has a total height of approximately 30 meters. It admits that the cubic part of the sculpture is parallel to the floor and has a volume of 2744 meters3 Calculate, in meters, the height of the bust that supports the cube. Displays all the calculations you made.
89, ÷ 10
Use a pattern to prove that (-2)-(-3)=1
Find the center coordinates and radius of a circle for an equation written as: 3x2 + 3y2 - 6y = —12× + 24
Professor Vélez has withdrawn 40 monthly payments of $3,275 from her investment account. If the investment account yields 4% convertible monthly, how much did you have in your investment account one month before making the first withdrawal? (Since you started making withdrawals you have not made any deposits.)
ind the z-score for which 72% of the distribution's area lies between -z and z. -1.7417, 1.7417 -1.1538, 1.1538 -1.0803, 1.0803 -2.826, 2.826
Take the limit of (sin(x-4))/(tan(x^2 - 16) as x approaches 4.
The business college computing center wants to determine the proportion of business students who have personal computers (PC's) at home. If the proportion is greater than 35%, then the lab will modify a proposed enlargement of its facilities. Suppose a hypothesis test is conducted and the test statistic is z= 2.6. Find the P-value for this test.
If the mean of the following numbers is 17, find the c value. Produce an algebraic solution. Guess and check is unacceptable. 12, 18, 21, c, 13
calculate the product of 4 and 1/8
Solve the system of equations by the addition method. 0.01x-0.08y=-0.1 0.2x+0.6y=0.2
Suppose a car license plate consists of 2 letters and two digits of which the first cannot be zero. How many different plates can be engraved? consider only 26 letters and 10 digits draw an example of this.
A plant found at the bottom of a lake doubles in size every 10 days. Yeah It is known that in 300 days it has covered the entire lake, indicate how many days it will take to cover the entire lake four similar plants.