Solution :
The price per trip is given as ![$=\frac{\text{total cost}}{\text{No. of trips}}$](https://tex.z-dn.net/?f=%24%3D%5Cfrac%7B%5Ctext%7Btotal%20cost%7D%7D%7B%5Ctext%7BNo.%20of%20trips%7D%7D%24)
The number of trips is given as = 800
The total cost calculations are as follows :
Particulars Amount Calculations
Annual cost for automobile van $ 18,000 ![$\frac{45000 \times 2}{5}$](https://tex.z-dn.net/?f=%24%5Cfrac%7B45000%20%5Ctimes%202%7D%7B5%7D%24)
Cost of driver salary $ 80,000 45000 + 35000
Cost of fringe benefits $ 24,000 80000 x 30%
Cost of insurance $ 2,000 ![\frac{6000}{3 \text{ years}}](https://tex.z-dn.net/?f=%5Cfrac%7B6000%7D%7B3%20%5Ctext%7B%20years%7D%7D)
Fuel and maintenance $ 8,000
Total cost $ 132,000.00
Therefore the price per trip ![$=\frac{\$ 132,000}{800 \text{ trips}}$](https://tex.z-dn.net/?f=%24%3D%5Cfrac%7B%5C%24%20132%2C000%7D%7B800%20%5Ctext%7B%20trips%7D%7D%24)
![$= \$ 165 \text{ per trip}$](https://tex.z-dn.net/?f=%24%3D%20%5C%24%20165%20%5Ctext%7B%20per%20trip%7D%24)