Determine the probable average cost per hour

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Reference no: EM131497688

Question: Determine the probable average cost per hour over the life of the equipment for owning and operating a wheel loader under the conditions listed below. Use the straight line method of depreciation

- Operator cost = $20.001h

- Operating conditions = average

- Delivered price = $70,000

- Cost of a set of tires = $4000

- Expected loader life = 5 years

- Hours operated = 2000 h/ye

- Fuel cost = $l.OO/gal ($0.26/C)

- Loader horsepower = 120 hp (89.5 kW)

- Rate for interest, tax, insurance, and storage = 15%.

Reference no: EM131497688

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