Question: Using the following information, determine the fixed and operating costs for trackhoe. Purchased price - $ 1 1 5 , 0 0 0 . 0

Using the following information, determine the fixed and operating costs for trackhoe. Purchased price - $115,000.00Horsepower rating -140 hPCost of tires (treads)- $6,000.00Salvage value - $15,000.00Useful life -5 Years (7,000 work hours total)Annual interest rate 6%Length of loan -5 YearsTotal insurance, taxes, and storage 5% per yearFuel cost - $4.00 Per gallonFuel consumption rate -0.06 gallons per hp per hourPower utilization 80%Use factor -45 minutes per hourLubrication -6 quarts of oil at $5.00 per quartOiler labor -2 hours at $30.00 per hourOil filter - $23.50 each oil changeLubrication schedule - Every 100 hoursGrease - $7.00 per tube at 1 tube per 10 hours of useLife of tires -3,500 hoursRepair expenses 50% over useful work life

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!