COST MODELLING OF

TAXI SERVICES

PREPARED BY:
RESMITA DAS (07)
SAYED YOUSUF IFTEQAR (13)
 TAXI
• Business Type : Corporate Taxi Services & Outstation

Taxis

• Total Number of Cars owned: 10

• Number of Drivers with Fixed Salary +Commission : 17

• Number of Employees with Fixed Salary + Commission: 4

• Maintenance of the Cars: Owned by the Company

• Number of day the drivers work: 280

• Charges/km : INR 15
 TAXI-TYPE A (CORPORATES) TAXI-TYPE B (OUTSTATION)

Number of working days in a year 280 days Number of working days in a year 280 days

Total Number of Shifts in a day 2 (Nos.) Total Number of Shifts in a day 1 (No.)

Maximum working hours per day 16 Maximum working hours per day 10

Working hours per shift 8 Working hours per shift 10

Average Km per hour 25 Average Km per hour 45

No. of taxis 7 No. of taxis 3

Total number of Kilometers Total number of Kilometers
(Annual maximum) 7,84,000 (Annual maximum) 3,78,000
 MASTER BUDGET
Master Budget
Annual Material Rate Total
Particulars Units Quantity (per unit) Quantum
Material Budget-
Procurement
Diesel Liters 81340 70 56,93,800

Brand Printing per Sticker 10 2000 20,000

Marketing Pamphlet per box 5000 10 50,000
Packaging per box 5000 10 50,000
Total 5,81,3800
 MASTER BUDGET
Master Budget

Particulars Nos. Rate per unit Total Quantum

Labour Budget
Direct Labour 20 10,20,000

Indirect Labour 2 8,000 1,92,000

Office Staff Salary 1 20,000 2,40,000
Sales Commission 2 23,24,000
Total 37,76,000
 MASTER BUDGET
Particulars Nos. Rate per unit Total Quantum
Overhead Budget
Drinking water for drivers and staff 20,000
Cars Depreciation 7,60,500
Depreciation of office equipment 10,000
Maintenance 120 2,000 2,40,000
Miscellaneous Taxi Expenditure 3,000 36,000
GST 5% 5,88,000
Miscellaneous Office Expenditure 60,000
Marketing 86000
Garage charges 12 1,500 18,000
Insurance and other taxes 12 1,500 18,000
Mobiles & GPS System 17 7,000 1,19,000
Total 19,55,500
Master Budget Total 1,15,45,300
 Break Even Point
No of units 11,62,000 Utility Vs. TFC , TVC, TC
Per Unit Total 12000000 120

MRP 15.00 1,74,30,000 10000000 100

Asessible Value 12.00 1,39,44,000

8000000 80

GST 0.60 6,97,200

6000000 60

Net Price 14.40 1,67,32,800

4000000 40
Variable Costs 7.41 86,05,800

2000000 20
Contribution 6.99 81,27,000

Fixed Costs 2.42 28,12,500 0 0

1 2 3 4 5 6 7 8 9 10 11

Total Variable Cost Total Fixed Cost Total Cost Ultility

Profit / (Loss) 4.57 53,14,500

Break Even Point (Units) 3,13,484 26.98% As, the utility level goes up, TFC remain constant and
Break Even Point (Rs.) 45,14,171 3,13,484.0655 TVC and TC increases
 Break Even Point
UTILITY Vs. F, V, C, P, T COST/UNIT
120 6

100
2

0
80

-2

60 -4

-6

40
-8

-10
20

-12

0 -14
1 2 3 4 5 6 7 8 9 10 11

Ultility Variable cost/unit Contribution/unit Fixed cost/unit Total cost/unit Profit/unit

As, the utility level goes up, VC/unit and Contribution/remains Constant
Fixed cost/unit and Total cost/unit Decreases and Profit/unit Increases
 Break Even Point:

• ~ At 27% of utilization we will achieve breakeven

• Profit Earned : INR 53,14, 500/-
(at 100% Utilization)
THANK YOU!!!