I need some help with this question, My answer to question E) is 1880 pounds per year, can anyone suggest a different answer, also does anyone know how would I revise for questions of this type.
Give answers, where appropriate, to 1 decimal place.
Julia Parsons runs a small business hiring out canoes and pedaloes (pedal boats) in a seaside holiday resort during the summer months. The canoes and pedaloes are subjected to considerable “wear and tear”.
Julia’s “fleet” consists of
- 10 single canoes (canoes for a single person)
- 12 double canoes (canoes for 2 persons)
- 12 pedaloes (pedal boats)
- 2 large canoes (canoes for 4 persons)
The hiring costs per hour for these are,
Single £4;
Double £6;
Pedaloes £3;
Large £8Julia has kept a record of usage over several years and assesses the total usage according to the following table.
Table 1 Number of occasions when canoe/pedalo is hired for the period shown
Due to the heavy “wear and tear” each pedalo has to be replaced every 3 years and each canoe every 5 years. Julia maintains a depreciation fund for this purpose and puts the same amount of money each year in to this fund. The costs for new are,
Single £200;
Double £230;
Pedaloes £150;
Large £400(e) How much does Julia put in to the fund each year?