Iron ore is transported from two mines, A and B and unloaded at plots in a railway station. A is at a distance of 10 kms and B is at a distance of 15 kms from the railway plots. A fleet of lorries of...

Iron ore is transported from two mines, A and B and unloaded at plots in a railway station. A is at a distance of 10 kms and B is at a distance of 15 kms from the railway plots. A fleet of lorries of 5-tonne carrying capacity is used for transport of ore from mines. Records reveal that lorries average a speed of 30 kms per hour when running and regularly take 10 minutes to unload at the railhead. At mine A, loading time averages 30 minutes per load while at mine B, loading time averages 20 minutes per load.

Drivers wages, depreciation, insurance, and taxes are found to cost `90 per hour of operating. Fuel, oil, tyres, repairs and maintenance cost `12 per km. Draw up a statement showing the per tonne–km cost of carrying iron ore from each mine.