Union Transport Company Ltd supplies the following details in respect of a truck of a 5-tonne capacity: The truck carries goods to and from the city covering a distance of 50 kms each way. On outward...

Union Transport Company Ltd supplies the following details in respect of a truck of a 5-tonne capacity:

The truck carries goods to and from the city covering a distance of 50 kms each way. On outward trip, freight is available up to the full capacity and on return trip, 20 per cent of capacity. Assume that the truck runs on an average of 25 days a month. Work out:

(a) Operating cost per tonne-km, and

(b) Rate per tonne per trip that the company should charge if a profit of 50 per cent on freight is to be earned.