2

You have recently bought 3 new 4-axle tippers, replacing those existing ones which were 7 years old, and the new vehicles will be kept for the same time. Having worked out  the costs for each vehicle, you have established the following figures.

• 32,000kg 4-axle tipper: £150,000
• Tyres 12 @ £250 each
• Driver's wages: £30,000
• VED £4,800
• Insurance £5,400
• Administrative costs £7,000
• Depreciation £12,200 per annum
• Running costs £0.61 per mile
• Annual working pattern 46 weeks, 5 days per week

Calculate the daily charge to a customer who wishes to hire 1 vehicle with a driver for a full day. You would want to make a profit on costs of 25% and assume that the vehicle travels 200 miles in the day without incurring additional tolls, subsistence, or any other type of expense. Round your answer to 2 decimal places.