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Operation Cost

Monthly Cost Per Student for a 2-Way Trip Based on New Vehicle in Year 2005
                     
              40-seater 30-seater 19-seater 10-seater
  Basic Cost                  
1 Monthly Expenses (yearly cost / 12 months)            
  Vehicle:                  
       Purchase cost         $165,000 $153,000 $105,000 $49,000
       Depreciation                
       - no. of years         10 10 10 10
       - annual charge         $16,500 $15,300 $10,500 $4,900
       - monthly charge         $1,375 $1,275 $875 $408
       Annual interest rate       3.875% 3.875% 3.875% 3.875%
       No. of years' loan         5 5 5 5
       - financing quantum       70% 70% 70% 70%
       - financing amount         $115,500 $107,100 $73,500 $34,300
       - total interest cost         $22,378 $20,751 $14,241 $6,646
       - monthly interest cost over 10 years     $186 $173 $119 $55
  Monthly Vehicle expense       $1,561 $1,448 $994 $464
  Driver's salary         $2,000 $1,800 $1,500 $1,300
  Attendant's salary         $600 $500 $400 $0
  Diesel           $1,350 $1,000 $900 $425
  Vehicle repair & maintenance       $800 $700 $500 $300
  Parking           $185 $185 $185 $75
  Insurance           $260 $220 $220 $200
  Road Tax           $125 $83 $75 $67
  Total costs         $6,881 $5,936 $4,774 $2,831
                     
2 Actual no. of students                
   - 1 session         35 30 22 13
   - 2 sessions         53 45 33 20
3 Maximum seat capacity              
   - 1 session         60 45 28 15
   - 2 sessions         90 67 42 22
4 % Capacity Utilisation         58% 67% 79% 87%
5 Cost per student before allocation              
   - 1 session         $197 $198 $217 $218
   - 2 sessions         $130 $132 $145 $142
                     
  Cost Allocation to Other Transport Sources:            
6 % of cost allocation         50% 40% 35% 30%
  Cost item that is not allocated : Attendant's Salary          
  Remaining cost items to be allocated:            
       Vehicle depreciation       $688 $510 $306 $123
       Vehicle interest cost       $93 $69 $42 $17
       Driver's salary         $1,000 $720 $525 $390
       Attendant's salary         $0 $0 $0 $0
       Diesel           $675 $400 $315 $128
       Vehicle repair & maintenance       $400 $280 $175 $90
       Parking           $93 $74 $65 $23
       Insurance         $130 $88 $77 $60
       Road Tax         $63 $33 $26 $20
       Total allocation         $3,141 $2,174 $1,531 $849
                     
  Cost less allocation         $3,741 $3,762 $3,243 $1,981
                     
7 Cost less allocation per student:              
   - 1 session         $106.88 $125.39 $147.40 $152.42
   - 2 sessions         $70.58 $83.59 $98.27 $99.07
                     
8 With Mark-Up (5%)                
   - 1 session         $112.22 $131.65 $154.77 $160.04
   - 2 sessions         $74.11 $87.77 $103.18 $104.03
9 With Mark-Down (10%)              
   - 1 session         $96.19 $112.85 $132.66 $137.18
   - 2 sessions         $63.52 $75.23 $88.44 $89.17
                     
10 Additional Cost by Distance              
                     
  Driver's salary (opportunity cost):              
       Average distance per single trip (km)     25 25 25 25
       Average no, of trips a day       4 4 4 4
       Average total distance a day (km)     100 100 100 100
       No. of operating days a month       20 20 20 20
       Driver's salary a day (after allocation)     50 54 49 46
       Driver's salary per kim (after allocation)     $0.50 $0.54 $0.49 $0.46
                     
  Diesel:                  
       Diesel cost a day (after allocation)     $34 $30 $29 $15
       Diesel cost per km (after allocation)     $0.34 $0.30 $0.29 $0.15
                     
  Vehicle repair & maintenance:              
       Vehicle repair & maintenance cost per day (after allocation) $20 $21 $16 $11
       Vehicle repair & maintenance cost per km (after allocation) $0.20 $0.21 $0.16 $0.11
                     
  Total additional cost per km per day for 1 way   $1.04 $1.05 $0.94 $0.72
                     
  Total additional cost per km per month for 1 way   $20.75 $21.00 $18.85 $14.18
  Total additional cost per km per month for 2 ways   $41.50 $42.00 $37.70 $28.35
                     
11 Key Variable Cost                
                     
  Diesel cost (after allocation)       $675 $600 $585 $298
       Minimum change to warrant increase in fee by $1 per student        
       (increase monthly fee by $1 per student if diesel cost goes up by):        
       - 1 session (No. of students/Diesel cost after allocation) 5.2% 5.0% 3.8% 4.4%
       - 2 sessions (No. of students/Diesel cost after allocation) 7.9% 7.5% 5.6% 6.7%
                     
  Driver's Salary (after allocation)       $1,000 $1,080 $975 $910
       Minimum change to warrant increase in fee by $1 per student        
       (increase monthly fee by $1 per student if salary cost goes up by):        
       - 1 session (No. of students/Driver's salary after allocation) 3.5% 2.8% 2.3% 1.4%
       - 2 sessions (No. of students/Driver's salary after allocation) 5.3% 4.2% 3.4% 2.2%
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