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THIS WEEK'S PROBLEM
Page 101
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"I am offered a contract to carry 20 churns of milk per day, increasing to 30 churns in the course of about a year's time. The distance involved is 165 miles per day (821 out and the same distance home), carrying loaded churns one way and bringing back the empty ones. The contract involves working seven days per week. What do you think I should charge in order to enable me to make £3 per week profit as well as pay for the lorry by instalments?
Your total weekly mileage at 165 per day for seven clays per week is 1,155, say, 1,200 so as to make allowance for occasional digression. You will need a 3-ton lorry and the total cost of operation will be approximately £30. I suppose you desire to make about £5 per week to meet the instalments which have to be paid add £.3 per week for net profit and £2 per week for establishment charges and contingencies, and the total is £40 per week. While you are carrying 20 churns per day you must, therefore, charge 3s. 7d. per churn, but when your work increases to 30 churns, 2s. 5d. per churn would suffice.