| Exercise 2.94 | Unnamed: 1 | Unnamed: 2 | Unnamed: 3 | SOLUTION |
|---|---|---|---|---|
| McGill's Bus Company Annual Service Cost Statement | ||||
| £ | ||||
| Depreciation | 96000 | |||
| Petrol and Maintenance | 400000 | |||
| Administration Expenses | 36664 | |||
| Garage Rental | 25000 | |||
| Vehicle Insurance | 32000 | |||
| Personal Insurance | 16000 | |||
| Driver's Wages | 233728 | |||
| Uniforms | 800 | |||
| Tyres | 3328 | |||
| TOTAL ANNUAL COST | 843520 | |||
| NOTES | ||||
| Depreciation | £60000 - £12000 | |||
| 48000 | ||||
| £48000 / 4 years | ||||
| 12000 | ||||
| £12000 x 8 coaches | ||||
| 96000 | ||||
| Petrol and Maintenance | £50,000 x 8 coaches | |||
| 400000 | ||||
| Vehicle Insurance | £4000 x 8 coaches | |||
| 32000 | ||||
| Personal Insurance | £2000 x 8 drivers | |||
| 16000 | ||||
| Driver's Wages | Basic | 8 drivers x 8 hrs x 5 days x £11 x 52 Weeks | ||
| 183040 | ||||
| Overtime | 8 drivers x 8 hrs x 1 day x £16.50 x 48 weeks | |||
| 50688 | ||||
| Total | 233728 | |||
| Uniforms | 2 uniforms x £50 x 8 drivers | |||
| 800 | ||||
| Tyres | Annual Miles | 400 miles x 48 weeks x 8 coaches | ||
| 153600 | miles | |||
| Cost of Tyres | £162.50 x 4 tyres x 8 coaches | |||
| 5200 | ||||
| Lifetime Miles | 30000 miles x 8 coaches | |||
| 240000 | ||||
| Annual Cost | Annual Miles | x Cost of Tyres | ||
| Lifetime Miles | ||||
| 153600 | x £5,200 | |||
| 240000 | ||||
| 3328 | ||||
| Number of Passenger Miles | ||||
| Annual Miles x Occupany Rate | ||||
| 153600 miles x (30 seats x 80%) | ||||
| 153600 miles x 24 seats | ||||
| 3686400 | Passenger Miles | |||
| Operating Cost Per Passenger Mile | ||||
| Total Cost / Total Number of Passenger Miles | ||||
| £843520 / 3686400 Passenger Miles | ||||
| 0.22881944444444444 | ||||
| 0.22881944444444444 | ||||
| Charge per Passenger Mile | ||||
| Operating Cost | 0.22881944444444444 | |||
| Add Profit Margin (20%) | 0.057204861111111144 | |||
| Fare per Passenger Mile | 0.2860243055555556 | |||
| Total Annual Sales Revenue | ||||
| Fare per Passenger Mile x Number of Passenger Miles | ||||
| £0.29 x 3686400 Passenger Miles | ||||
| 1069056 | ||||
| Estimated Profit | ||||
| Total Annual Sales Revenue | 1069056 | |||
| Less Total Cost | 843520 | |||
| Estimated Profit | 225536 | |||
| Football Club Bus Annual Service Cost Statement | ||||
| £OOO | £OOO | |||
| Refreshments | 5 | |||
| Fuel | 10 | |||
| Cleaning Materials | 3 | 18 | ||
| Driver/Steward Salaries | 18 | |||
| Insurance | 3 | |||
| Administration | 2 | |||
| Uniforms | 1 | |||
| Maintenance | 4 | 28 | ||
| Depreciation | 18 | |||
| TOTAL RUNNING COSTS | 64 | |||
| NOTES | ||||
| Depreciation | Total Cost | 20% of Cost | ||
| 20% x £120000 | ||||
| 24000 | ||||
| Share of Depn | £24000 X 12000 miles / 16000 miles | |||
| 18000 | ||||
| Hiring Charge to Football Club | ||||
| £OOO | ||||
| Total Running Costs | 64 | |||
| Add Profit Margin (20%) | 16 | |||
| Hiring Charge | 80 | |||
| Difference in Profit | ||||
| New Charge | 12000 Miles x 50 Seats x £0.29 x 75% x 90% | |||
| 117450 | ||||
| Less Original Charge | 80000 | |||
| Difference (Increase) | 37450 |