TSCM 350 Carrier Management 

TSCM 350 Carrier Management                                                                                                                       

Using MS Excel ,MS Word, and the following information:

  1. Prepare a fixed-variable and over/under pricing structure for the three private fleet opportunities listed below.
  2. Prepare a pro forma income statement for the three private fleet opportunities listed below.
  3. Rank the three opportunities in order of preference.
  4. Variable Costs
  5. Driver Pay:  $0.40/mile
  6. Fringe Benefits:  35% of wages
  7. Fuel:  $2.42/Gallon and 8 MPG (new Freightliner Cascadia)
  8. Maintenance:  $0.15/mile
  9. Insurance:  $0.13/mile
  10. Fixed Costs
  11. Tractor Depreciation:  $45,000/year/tractor
  12. Trailer Depreciation:  $5,800/year/trailer
  13. Legalization/Recruiting/Administration:  $20,000/year/driver
  14. Tractor Cost:  $135,000
  15. Trailer Cost:  $29,000
  16. Company will finance 75% of the capital investment
  17. Interest Rate:  6% (calculate as simple annual interest)
  18. Effective Tax Rate:  38%
  19. ROA Hurdle Rate for New Capital Investments:  6%
  20. OR Target Rate for Truckload Operations:  88%
  21. Weeks per year:  52
  22. Length of contract:  3 years
Mutually Exclusive Fleet OpportunitiesFleet Opportunity
ABC
Fleet Summary:
Tractors5812
Trailers102430
Utilization (Weekly Miles per Tractor)2,8002,9002,100