The tractor is used in average condition

Assignment Help Operation Management
Reference no: EM132145803

You are awarded a project for earthmoving related to a parking lot. You plan to use crawler tractor dozer with the following information (Now is the third year since you purchased the dozer): The crawler tractor dozer is used about 1,500 hours per year. It costs $150,000 new and has a useful life of 15,000 hours. Estimated salvage value after 15,000 hours of use is $25,000. The discount rate is 12%. Interest on investment is 7%, Insurance is 2%, Taxes 3.5%, and storage 0.5%. If using sum-of-years (SOY) depreciation method: a. What is the hourly ownership costs of the tractor in the third year? b.What is the estimated hourly maintenance and repair cost if the tractor is used under average condition? c.The tractor is powered by a 200-horsepower diesel engine. What is the estimated hourly fuel costs if the tractor is used under favorable condition and diesel fuel costs $2.5/gal? d. What is the estimated hourly cost for filter, oil, and grease if the tractor is used in average condition? e) You have estimated the productivity of the dozer to be 92.5 LCY/hour. What is unit cost ($/LCY) associated with using the dozer if operator’s hourly wage is $25/hour?

Reference no: EM132145803

Questions Cloud

Companies to monitor employee motivation-satisfaction : What is the most effective way for companies to monitor employee motivation, satisfaction, and performance? What are its advantages and disadvantages?
Tell me about hypothesis-marketing-consumer behavior : Tell me about a hypothesis that you would like to test that relates to marketing/consumer behavior. Explain the principle of unjust enrichment.
Create project timelines and ensure that milestones are met : Wendy is a large-scale project manager. She can break down a project into its component parts, create the project timelines, and ensure that milestones are met.
What if insurance policy also contained liquidated damages : What if your insurance policy also contained a Liquidated Damages clause, that said the parties agree that coverage for any damage to the interior of the car,
The tractor is used in average condition : What is the estimated hourly cost for filter, oil, and grease if the tractor is used in average condition?
Marketers face with international market segmentation : Discuss what challenges marketers face with international market segmentation
Consolidation of variable interest entitties : To assist in you application of codification guidance, also consult Deloitte's guide book, Consolidation of variable interest entitties.
Preston then distributed the stock to its shareholders : Preston Corporation sold all of its assets to Adam Corporation in exchange for Adam stock. Preston then distributed the stock to its shareholders,
Who owned the equipment-furnishings and inventory : The Havana Club operated in Salt Lake City under a lease running to defendant Dale Bowen, who owned the equipment, furnishings, and inventory.

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd