What is the total hourly ownership cost? Assumptions: Actual cost (delivered) - $75,000 Horsepower rating-150 hp...

 

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What is the total hourly ownership cost? Assumptions: Actual cost (delivered) - $75,000 Horsepower rating-150 hp (110 kw) Cost of tires - $7,500 Salvage or scrap value - 3% Useful life - 7 years or 14,000 hours Total interest -9.5% per year Length of loan-6 years. Total insurance, taxes, and storage - 6% per year Fuel cost-$0.40 per litre Consumption rate - 0.23 litres per hp per hour Power utilization - 62% Use factor - 70% Lubrication - 4 litres oil at $2.60 Oiler labour - 2 hours labour at $16.50 Lubrication schedule - every 150 hours Life of tires - 4,000 hours Repair to tires - 12% of depreciation Repairs to equipment - 65% over useful life Fixed Cost (per hour): Approximate interest cost = Salvage value= Depreciable cost= Depreciable cost per work hour = Depreciable cost per work hour = Repairs = Insurance taxes & storage = Insurance taxes & storage = Operating Cost (per hour): Tire depreciation = Tire repair= Fuel cost = Lubrication cost = Lubrication labour Lubrication cost per hour = Lubrication cost per hour = What is the total hourly ownership cost? Assumptions: Actual cost (delivered) - $75,000 Horsepower rating-150 hp (110 kw) Cost of tires - $7,500 Salvage or scrap value - 3% Useful life - 7 years or 14,000 hours Total interest -9.5% per year Length of loan-6 years. Total insurance, taxes, and storage - 6% per year Fuel cost-$0.40 per litre Consumption rate - 0.23 litres per hp per hour Power utilization - 62% Use factor - 70% Lubrication - 4 litres oil at $2.60 Oiler labour - 2 hours labour at $16.50 Lubrication schedule - every 150 hours Life of tires - 4,000 hours Repair to tires - 12% of depreciation Repairs to equipment - 65% over useful life Fixed Cost (per hour): Approximate interest cost = Salvage value= Depreciable cost= Depreciable cost per work hour = Depreciable cost per work hour = Repairs = Insurance taxes & storage = Insurance taxes & storage = Operating Cost (per hour): Tire depreciation = Tire repair= Fuel cost = Lubrication cost = Lubrication labour Lubrication cost per hour = Lubrication cost per hour =

Answer rating: 100% (QA)

To calculate the total hourly ownership cost we need to determine the fixed cost and operating cost components per hour Lets calculate each component ... View the full answer