£40 PER WEEK FOR 1,400 MILES NOT ENOUGH.
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" We have been offered a year's haulage contract which will involve the use of an 8-ton vehicle (petrolengined) covering 1,400 miles per week in 10 journeys, carrying full loads. The revenue will be £40 per week. Would this contract be profitable? "
You will find, if you refer to The Commercial Motor Tables of Operating Costs, that the bare cost of running the vehicle, apart from the sometimes heavy contingent expenses which are inseparable from a contract such as you have in mind, would be £44 per week, assuming you could obtain a fourwheeler legally capable of carrying the load, or 148 1.0s. if you had to use a six-wheeler. The proposed revenue of £40 per week is, therefore, absurdly inadequate, c38