Question: You need to develop a cost per cubic metre, including operator, for a truck operation, to be used in preparing a tender and, if the

You need to develop a cost per cubic metre, including operator, for a truck operation, to be used in preparing a tender and, if the tender is successful, in the subsequent monitoring and control of costs. The truck will be leased for US$ 450 per week, without operator. It is expected to be operated for 30 hours per week and to haul 50 cubic metres per hour. The operator earns US$ 18 per hour during the 30 hours the truck is operating and the contractor must also pay an additional 30% for indirect labour costs. Assume that the lease rate includes all operating costs except operator. Find the cost per cubic metre.

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