$2\mathrm{.}17$ A $262-$fwhp diesel$-$powered wheel loader will be used to load shot rock. This loader was purchased for $$350,000.$ The estimated salvage value at the end of $4$ years is $$86,000.$ The company's cost of capital is $7\mathrm{.}2\%.$ A set of tires costs $$36,000.$ The work efficiency will be equal to a $45-$min hour. The engine will work at full throttle while loading the bucket $(33\%$ of the time$)$ and at three$-$quarter throttle to travel and dump. The crankcase capacity is $12$ gallons and the company has a policy to change oil every $100$ hours on this job. The annual cost of repairs equals $65\%$ of the straightline machine depreciation. Fuel cost is $$\frac{3\mathrm{.}25}{g}al,$ and oil is $$\frac{4\mathrm{.}55}{g}al.$ The cost of other lubricants and filters is $$\frac{0\mathrm{.}45}{h}r.$ Tire repair is $18\%$ of tire depreciation. The tires should give $3,400$ hours of service. The loader will work $1,600$ hr$/$yr$.$ In this usage, the estimated life for bucket teeth is $120$ hours. The local price for a set of teeth is $$700.$ What is the operating cost for the loader in this application?

USE A SIMPLE APPROACH FOR THE TIERS: COST$/$SERVICE LIFE BUCKET TEATH WILL WEAR ONLY WHEN LOADING THE BUCKET $-33\%$ of the time