Question: Using the following information, determine the ownership and operating costs for a scraper ($/hr). (Ignore Overhead costs) Purchase cost$162,000 (including tires) Horsepower rating200 hp Cost

Using the following information, determine the ownership and operating costs for a scraper ($/hr). (Ignore Overhead costs) Purchase cost$162,000 (including tires) Horsepower rating200 hp Cost of tires$6,000 Salvage value$32,400 Useful life6 years at 1,400 hours per year Fuel cost$3.90 per gallon Fuel consumption rate0.06 gallons per hp per hour Power utilization (Operating Factor) 85 percent Use factor (Efficiency)40 minutes per hour (66.67 percent) Air filter$17.00 changed every 200 hours Life of tires3,500 hours Repair to tires12 percent of Tire deprecation Repairs to equipment120 percent of Depreciation

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