Question

Fill in the incomplete amounts.

Fleet Activity Summary Loaded Miles Empty miles Toal Miles (utilization) Gross linehaul revenue Loaded rate per mile Net revenue per mile 2200 300 $1.70 Estimated Profit and Loss Linehaul Revenue Per mile Tractor Total Variable Costs Driver Wages per mile Fringe benefits (%) Fuel cost per mile $0.48 25% $0.42 Maintenance cost per mile Insurance cost per mile Total Variable Cost $0.11 $0.10 Fixed Cost Tractor Depreciation Trailer depreciation Legalization Corporate overhead Total Fixed Cost Grand Total Cost Per Week $260.00 $42.00 $192.31 $117.02 Operating Profit Profit Margin

Answer 1

Fleet Activity Summary( Assuming per week)

Loaded Miles     2200

Empty Miles 300

Total Miles (Utilization) 2500

Gross linehaul revenue $3740(2200 * $1.7)

Loaded rate per mile $1.70

Net revenue per mile $1.50(3740 / 2500)

Estimated Profit and Loss Per mile($)- Tractor Total($)

Linehaul Revenue    1.50 3740

Variable costs

Driver wages 0.48 1200(0.48 * 2500)

Fringe benefits 0.12(0.48 * 25%) 300(1200 * 25%)

Fuel cost 0.42 1050(2500 * 0.42)

Maintenance cost 0.11 275(0.11 * 2500)

Insurance cost 0.10 250(0.10 * 2500)

Total Variable cost 1.23 3075

Fixed cost (Per week)

Tractor Depreciation 0.10(260 / 2500) 260

Trailer Depreciation 0.02(42 / 2500) 42

Legalization 0.08(192.31 / 2500) 192.31

Corporate overhead 0.05(117.02 / 2500) 117.02

Total Fixed Cost 0.25 611.33

Grand Total cost 1.48(1.23 + 0.25) 3686.33 (3075 + 611.33)

Operating Profit 0.02(1.5 - 1.48) 53.67

Profit Margin 1.33% [(0.02 / 1.5) *100]   1.44% [(53.67 / 3740) * 100]