Sum: 2 (Calculate Bus fare to be charged)

The Union Transport Company has been given a 20-kilometre-long route to ply a bus. The bus
costs the company ₹ 1,50,000. It has been insured at 3% per annum. The annual Road Tax
amounts to ₹ 3,000. Garage Rent is ₹ 600 per month. Annual repair is estimated to cost ₹ 3,600
and the bus is likely to last for five years.

The salary of the driver and the conductor is ₹ 900 per month and ₹ 300 per month respectively.
The manager’s salary is ₹ 2,100 per month and stationery will cost ₹ 150 per month. Petrol and
oil will cost ₹ 75 per 100 kilometres. The bus will make three round trips per day carrying on an
average 40 passengers in each trip.

Assuming 15% profit on cost and that the bus will run on an average 25 days in a month, prepare
operating cost statement on a full year basis and also calculate the bus fare to be charged from
each passenger per kilometre.

Sum: 3 (Calculate Bus fare to be charged)

You have been given a permit to run a bus on a route 20 km long. The bus costs you ₹ 45,000. It
has to be insured @ 3% p.a. and the annual tax will be ₹ 450. Garage rent is ₹ 50 p.m. Annual
repairs will be ₹ 480 and the bus is likely to last for 5 years at the end of which the scrap value is
likely to be ₹ 3,000.

The driver’s salary will be ₹ 55 p.m. and the conductor’s ₹ 50 per month. Stationery will cost ₹ 25
p.m. The manager-cum-accountant’s salary will be ₹ 175 p.m.

Diesel and oil be ₹ 12.5 per hundred kilometres. The bus will make 3 round trips for carrying on
the average 40 passengers on each trip.

Assuming 20% profit on takings, calculate the bus fare to be charged from 100 passengers. The
bus will work on the average 25 days in a month.
Sum: 4 (Bus Fare to be charged for different journeys)

Mr. X owns a bus which runs according to the following schedule:

(i) Ahmedabad to Baroda and back, the same day.
Distance covered: 100 kms one way
Number of days run each month: 8
Seating capacity occupied: 90%

(ii) Ahmedabad to Mehsana and back, the same day.

Distance covered: 75 kms one way.
Number of days run each month: 10
Seating capacity occupied: 80%

(iii) Ahmedabad to Rajkot and back, the same day.

Distance covered: 200 kms one way.
Number of days run each month: 6
Seating capacity occupied: 100%

FOLLOWING ARE THE OTHER DETAILS

Cost of the bus ₹ 24,00,000
Salary of the driver ₹ 11,200 p.m.
Salary of the conductor ₹ 8,800 p.m.
Salary of the part time Accountant ₹ 800 p.m.
Insurance of the bus ₹ 19,200 p.a.
Diesel consumption 4 kms per litre at ₹ 24 per litre
Road Tax ₹ 6,000 p.a.
Lubricant Oil ₹ 40 per 100 kms
Permit fee ₹ 1260 p.m.
Repairs and maintenance ₹ 4000 p.m.
Depreciation of the bus @ 20% p.a.
Seating Capacity of the bus 50 persons
Passenger tax is 20% of the total takings.
Required: Calculate the bus fare to be charged from each passenger to earn a profit of 30% on
total takings. The fares are to be indicated per passenger for the journeys:
(i) Ahmedabad to Baroda
(ii) Ahmedabad to Mehsana
(iii) Ahmedabad to Rajkot