Using the following information, determine the fixed costs for trackhoe.

• Purchased price - $115,000.00
• Horsepower rating - 140 hP
• Cost of tires (treads) - $6,000.00
• Salvage value - $15,000.00
• Useful life - 5 Years (7,000 work hours total)
• Annual interest rate 6%
• Length of loan - 5 Years
• Total insurance, taxes, and storage 5% per year
• Fuel cost - $4.00 per gallon
• Fuel consumption rate - 0.06 gallons per hp per hour
• Power utilization 80%
• Use factor - 45 minutes per hour
• Lubrication - 6 quarts of oil at $5.00 per quart
• Oiler labor - 2 hours at $30.00 per hour
• Oil filter - $23.50 each oil change
• Lubrication schedule - Every 100 hours
• Grease - $7.00 per tube at 1 tube per 10 hours of use
• Life of tires - 3,500 hours
• Repair expenses 50% over useful work life

		24.96 $/hr
		$24.96/day
		20.86 $/hr
		29.07 $/hr