QUESTION $3$

$[20$ MARKS$]$

You are the transport manager of TransLog Carriers that operate a fleet of $25$ combination vehicles in

various industries throughout southern Africa. One of these vehicles is a six$-$axle combination vehicle

consisting of a $6$x$4$ truck tractor & tridem semi$-$trailer that cover $140000$ km per annum. Use the

assumptions below to determine the following $($show all calculations$)$:

$3\mathrm{.}1.$ Calculate the annual total vehicle costs $($TVC$).(15$ marks$)$

$3\mathrm{.}2.$ What will the TVC per annum be at an annual travel distance of $120000$ km and $160000$ km

respectively? What do you observe of the total vehicle cost per km$?(6$ marks$)$