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)