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Q What is the cost of operating a sixton furniture van

25th November 1966
Page 69
Page 69, 25th November 1966 — Q What is the cost of operating a sixton furniture van
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Which of the following most accurately describes the problem?

averaging 800 miles a week? The initial cost is around E2,800 and the unladen weight 4 tons 7 cwt.

A The five items of standing costs per week

are estimated as follows: Licences £2 4s. Od.. wages £12 14s. 3d., rent and rates £1 6s. 6d., vehicle insurance £2 14s. 9d. and interest £4 4s. OcL Total: £23 3s. fid. or 6.95d. a mile.

Correspondingly the five items of running costs per mile are calculated as follows: Fuel 3.93d., lubricants 0.30d., tyres 1.38d., maintenance 3.57d. and depreciation 3.76d. Total: 12.94d. or £43 2s. 8d. per week.

The addition of standing and running costs gives a total operating cost for this six-ton van averaging 800 miles a week of 19.89d. per mile or £66 6s. 2d. a week.

In arriving at the above estimates interest is charged on the initial outlay at the rate of 74per cent, fuel consumption is reckoned at 14 m.p.g. and vehicle life at 150,000 miles.

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