BHG Toll Plaza Ltd built a 60 km. long highway and now operates a toll plaza...

 

Transcribed Image Text:

BHG Toll Plaza Ltd built a 60 km. long highway and now operates a toll plaza to collect tolls from passing vehicles using the highway. The company has estimated that a total of 12 crore vehicles (only single type of vehicle) will be using the highway during the 10 years toll collection tenure. Toll Operating and Maintenance cost for the month of April are as follows: (i) Salary to - Collection Personnel (3 Shifts and 4 persons per shift) - 550 per day per person Supervisor (2 Shifts and 1 person per shift)-750 per day per person Security Personnel (3 Shifts and 6 persons per shift) - 450 per day per person Toll Booth Manager (2 Shifts and 1 person per shift) - 900 per day per person (ii) Electricity - 8,00,000 (iii) Telephone - 1,40,000 (iv) Maintenance cost-30 Lakh Monthly depreciation and amortisation expenses will be 1.50 crore. Further, the company needs 25% profit over total cost to cover interest and other costs. Required: (i) CALCULATE cost per kilometer per month. (ii) CALCULATE the toll rate per vehicle. BHG Toll Plaza Ltd built a 60 km. long highway and now operates a toll plaza to collect tolls from passing vehicles using the highway. The company has estimated that a total of 12 crore vehicles (only single type of vehicle) will be using the highway during the 10 years toll collection tenure. Toll Operating and Maintenance cost for the month of April are as follows: (i) Salary to - Collection Personnel (3 Shifts and 4 persons per shift) - 550 per day per person Supervisor (2 Shifts and 1 person per shift)-750 per day per person Security Personnel (3 Shifts and 6 persons per shift) - 450 per day per person Toll Booth Manager (2 Shifts and 1 person per shift) - 900 per day per person (ii) Electricity - 8,00,000 (iii) Telephone - 1,40,000 (iv) Maintenance cost-30 Lakh Monthly depreciation and amortisation expenses will be 1.50 crore. Further, the company needs 25% profit over total cost to cover interest and other costs. Required: (i) CALCULATE cost per kilometer per month. (ii) CALCULATE the toll rate per vehicle.

Answer rating: 100% (QA)

i Cost per kilometer per month Total cost 25 Profit Salary of ... View the full answer