Determine the probable cost per hour of owning and operating a scraper unit with a 200-hp diesel engine. Use the combined depreciation and investment cost method to calculate ownership costs.
Determine the probable cost per hour of owning and operating a scraper unit with a 200-hp diesel engine. Use the combined depreciation and investment cost method to calculate ownership costs.
1. Calculate owning and operating costs with operator per hour of use.
2. Calculate cost per cy of material per hour.
The following conditions apply:
Factory delivered price = $300,000
Sales tax = 6% of delivered price
Operating factor = 0.60
Fuel costs = $5.23/gal
Unloading and assembling = $2,500
Salvage value = $20,000
Useful life= 4 yr
Hours used per year = 2,000 hrs
Investment costs = 3% of average annual value
Maintenance and repairs = 50% of straight- line depreciation
Diesel engine = 200hp Crankcase oil capacity = 9 gal
Hours between oil changes = 120 hrs
Oil costs = $14/gal
Tires= $62,000
Tire life = 4000 hrs
Tire repairs = 15% of tire depreciation
Operator cost= $35/hr
Equipment capacity = 85 cy/hr
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