Shankar has been promised a contract to run a tourist car on a 20-kms long route for the chief executive of a multinational firm. He buys a car costing `3,00,000. The annual cost of insurance and...

Shankar has been promised a contract to run a tourist car on a 20-kms long route for the chief executive of a multinational firm. He buys a car costing `3,00,000. The annual cost of insurance and taxes are `9,000 and `2,400 respectively. He has to pay `500 per month for a garage where he keeps the car when it is not in use. The annual repair costs are estimated at `8,000. The car is estimated to have a life of 10 years, at the end of which the scrap value is likely to be `50,000. He hires a driver who is to be paid `6,000 per month and 10 per cent of the takings as commission. Other incidental expenses are estimated at `2,000 per month.

Diesel and oil cost `500 per 100 kms. The car will make 4 round trips every day. Assuming that a profit of 15 per cent on takings is desired and that the car will be on the road for 25 days on an average per month, what should Shankar charge per round trip?