Question: Can you help me solve this problem? EXAMPLE 5.6 Jessie Owens Bhd. is a haulage contractor and operates three tow trucks. The following information is

Can you help me solve this problem?

EXAMPLE 5.6 Jessie Owens Bhd. is a haulage contractor and operates three tow trucks. The following information is available: 1. Loading costs: RM9 per tonne 2. Fuel costs: RMO.75 per kilometre 3. Repair costs: 45 cent per kilometre 4. Depreciation: RM1.50 per kilometre pius RM 150 per month per vehicle 5. Driver's wages: RM900 per month per vehicle 6. Supervision expenses: RM1,000 per month 7. General expenses: RM650 per month 8. During the month of June, it is expected that all the three tow trucks will be fully utilized. A total of nine trips will be made. The return journey will be empty. For trips 1 to 9 the tonnes carried are 68,56,80,64,52,80,58,52,50 respectively. The kilometres travelled one way for trips 1 to 9 are 720; 1060; 1560; 460; 880; 1920; 360; 400 and 540 respectively. Calculate: a) The running cost b) The standing cost c) The total cost d) The average cost per tonne kilometre for the month of June. Solution Example 5.6

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