For a construction job, a contractor can haul rock by means of an ordinary 10 cubic yard dump truck, or he can use a combination rig where a 10 cubic yard truck also pulls an 8 cubic yard trailer. When this combination is used, the trailer slides into the empty dump truck body for the return trip. The total equivalent operating cost, including the driver, amortization of capital, interest on the investment, fuel, and maintenance is P625/hour for the dump truck and P875/hour for the tandem rig. For the required 10-mile haul, the loading and unloading, hauling, and return times are as follows;
For a construction job, a contractor can haul rock by means of an ordinary 10 cubic yard dump truck, or he can use a combination rig where a 10 cubic yard truck also pulls an 8 cubic yard trailer. When this combination is used, the trailer slides into the empty dump truck body for the return trip. The total equivalent operating cost, including the driver, amortization of capital, interest on the investment, fuel, and maintenance is P625/hour for the dump truck and P875/hour for the tandem rig. For the required 10-mile haul, the loading and unloading, hauling, and return times are as follows;
Chapter1: Making Economics Decisions
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![For a construction job, a contractor can haul rock by means of an ordinary 10 cubic yard
dump truck, or he can use a combination rig where a 10 cubic yard truck also pulls an 8
cubic yard trailer. When this combination is used, the trailer slides into the empty dump
truck body for the return trip. The total equivalent operating cost, including the driver,
amortization of capital, interest on the investment, fuel, and maintenance is P625/hour for
the dump truck and P875/hour for the tandem rig. For the required 10-mile haul, the
loading and unloading, hauling, and return times are as follows;
Time, minutes
Conventional
Double Rig
Loading
3
Unloading
4
10
Hauling
24
28
Return
20
24
How much is the difference in cost per unit volume between the two alternatives?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7502c813-551a-40dd-8dca-018c0e15e1e9%2F1cd6638a-90fa-41bb-83e6-eaea727fa341%2Foiqgsql_processed.jpeg&w=3840&q=75)
Transcribed Image Text:For a construction job, a contractor can haul rock by means of an ordinary 10 cubic yard
dump truck, or he can use a combination rig where a 10 cubic yard truck also pulls an 8
cubic yard trailer. When this combination is used, the trailer slides into the empty dump
truck body for the return trip. The total equivalent operating cost, including the driver,
amortization of capital, interest on the investment, fuel, and maintenance is P625/hour for
the dump truck and P875/hour for the tandem rig. For the required 10-mile haul, the
loading and unloading, hauling, and return times are as follows;
Time, minutes
Conventional
Double Rig
Loading
3
Unloading
4
10
Hauling
24
28
Return
20
24
How much is the difference in cost per unit volume between the two alternatives?
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