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,
Julia 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,
(e) How much does Julia put in to the fund each year?