Chapter 13, Problem 7P

To determine

(a)

Average unit cost for operating a standard vehicle on a level roadway.

Answer to Problem 7P

  $\underset{\_}{\text{ 25}\%}$

Explanation of Solution

Calculation:

The average unit cost for operating a standard vehicle on a level roadway is as follows:

Let the depreciation cost per mile as $10\%$

Let the registration and insurance cost per mile as $8\%$

Let the maintenance cost per mile as $3\%$

Let the fuel cost per mile as $4\%$

The total cost required per mile by adding all the costs.

Total cost required per mile $=10\%+8\%+3\%+4\%$

Total cost required per mile $=\text{ 25}\%.$

Conclusion:

Therefore, the average cost required for operating a standard vehicle on a level roadway is $\text{ 25}\%$ per mile.

To determine

(b)

Average unit cost for travel time for a truck.

Answer to Problem 7P

  $\underset{\_}{30\%\text{per hour - mile of travel}\text{.}}$

Explanation of Solution

Calculation:

The average unit cost for travel time for a truck.

Let the cost required per mile to operate the truck as $35\%$

For the total unit costs using the relation

  $\text{Total}\text{unit}\text{costs}\text{=}\left(\text{Cost required per mile to operate the vehicle + cost required per}\text{mile}\text{to operate }\text{truck}\right)$

Substituting the values, we get

  $\begin{array}{l}\text{Total}\text{unit}\text{costs}\text{=}\left(\text{25\% + 35\%}\right)\\ \text{Total}\text{unit}\text{costs}\text{=}\text{60\% }\text{.}\end{array}$

Substitute the value of $\text{total}\text{unit}\text{costs}\text{=}\text{60\%}$ in the following equation $\text{Travel time cost}\text{=}\text{Total unit cost }\times \text{Average speed}$.

Let the average speed be $50\text{mph}$.

Substitute $60\%$ per mile for the total unit cost, we have

  $\begin{array}{l}\text{Travel time cost}\text{=}\text{Total unit cost }\times \text{Average speed}\\ \text{Travel time cost}\text{=}60\%\times 50\text{mph}\\ \text{Travel time cost}\text{=}\frac{60}{100}\times 50\text{mph}\\ \text{Travel time cost}\text{=}30\%\text{per hour - mile of travel}\text{.}\end{array}$

Conclusion:

Therefore, the estimate average unit cost for travel time for a truck is $30\%\text{per hour - mile of travel}\text{.}$

To determine

(c)

Average unit cost for single-vehicle property damage.

Answer to Problem 7P

  $\underset{\_}{\$1059\text{.}}$

Explanation of Solution

Calculation:

The average unit cost for single-vehicle property damage.

  $\text{Average unit cost for single vehicle property damage }\text{= }\frac{\text{Average property damage per crash}}{\text{Number of crash}}$

  $\text{Average property damage per crash}\text{=}\text{\$1800}$

  $\text{The average number of vehicles involve in the crash}\text{=}\text{1}\text{.7}$

Substituting the values, we have

  $\begin{array}{l}\text{Average unit cost for single vehicle property damage }\text{= }\frac{\text{\$}\text{1800}}{1.7}\\ \text{Average unit cost for single vehicle property damage }\text{= }\$1059.\end{array}$

Conclusion:

Therefore, the average unit cost forsingle-vehicle property damage is $\$1059$.

To determine

(d)

Average unit cost for personal injury.

Answer to Problem 7P

  $\underset{\_}{\text{\$}\text{400}\text{.}}$

Explanation of Solution

Calculation:

The average unit cost for personal injury.

Let the cost for X-ray be equal to $\text{\$}\text{225}\text{.}$

Let the cost for emergency to be equal to $\text{\$}\text{175}\text{.}$

  $\begin{array}{l}\text{Total cost for personal injury = }\text{Cost for X-ray + cost for emergency}\text{.}\\ \text{Total cost for personal injury = }\text{\$}\text{225 + \$}\text{175}\text{.}\\ \text{Total cost for personal injury = }\text{\$}400\text{.}\end{array}$

Conclusion:

Therefore, the average unit cost for personal injury is $\text{\$}\text{400}\text{.}$

To determine

(e)

The average unit cost for fatality.

Answer to Problem 7P

  $\underset{\_}{\$100,000\text{to }\$4.5\text{ million}.}$

Explanation of Solution

Calculation:

The average unit cost for fatality.

It varies from $100,000 to $4.5 million.