Cost for single decker?

Question

Hi,

I was just wondering how the cost for the single decker is calculated considering the following :

Cost per trip = (420k / 300k + 0.5) * 10 + 10,500 / 350 / 10 + 20 * 1 = £61 ?

420k/300k = 1,4 + 0,5 = 1,9 * 10 = 19

10500 / 350 = 30 / 10 = 3

20 * 1 = 20

19+3+20 = 42 ?!

How do you get to 61 (meaning that the dep cost was double counted according to the solution…?)

Unless I missed a key information, I don't understand why it is double counted.

Thanks for your help!

Answer 1

The explanation is wrong but the answer is right. There is a mistake in the first part of the explanation, where a 10 should be a 20.

Cost per trip = (420k / 300k + 0.5) * 20 + 10,500 / 350 / 10 + 20 * 1 = £61 ?

To help you understand, we know that each trip is 20 miles as per exhibit 1. Also, note that fuel per mile is lower in exhibit 2 (0.5 rather than 1)

Depreciation per trip (28) = Depreciation per mile (420/300) mutiplied by miles per trip (20)
Fuel per trip (10) = Fuel cost per mile (0.5) * miles per trip (20)
Insurance per trip (3) = insurance per year (10,500) divided by days a year (350) divided again by trips per day (10). Trips per day is calculated as hours per day (10) divided by hours per trip (1).
Labour cost per trip (20) = Exhibit 1

Total = 28+10+3+20 = 61

If you want some other cases, reach out and I would be happy to point you in the right direction.

Answer 2

Hi there,

I fully agree with Giacomo, a 10 should be a 20, not 10, as stated in the first section of the explanation.

In case you want a more detailed discussion on what case studies to use to best prepare for your upcoming interviews, please feel free to contact me directly.

Best,

Hagen

Answer 3

The main difference really is the risk at stake. Entrepreneurial Drive is more about having initiative and driving th... (read entire answer)

The main difference really is the risk at stake. Entrepreneurial Drive is more about having initiative and driving things forward, but Courageous Change is about making the hard... (read entire answer)