3.2.4. Tire Cost

Try these first

1. 1.

   What is the formula for estimating tire replacement cost?

   Hint

   Think about how often a tire needs to be replaced.

2. 2.

   How much percentage is generally added to tire replacement costs for repairs?

   Hint

   It is a small percentage of the replacement cost.

3. 3.

   What is typically included in tire costs for equipment?

   • Fuel Costs
   • Replacement Costs
   • Operator Wages

   Hint

   Focus on direct costs associated with the tire's functionality.

4. 4.

   True or False: Tire repair costs are included in the same category as fuel costs in budgeting.

   • True
   • False

   Hint

   Separate your knowledge regarding maintenance and operational expenses.

5. 5.

   If a tire set costs $2000 with each tire lasting 4000 hours and repair costs amounting to 10%, calculate the effective cost over 1000 hours of operation.

   Hint

   Calculate on a per-hour basis first and multiply by the hours operated.

6. 6.

   A contractor projects that their equipment will run for 2500 hours a year. They know the cost of tires will be $1000 per tire with a life span of 5000 hours. If they also consider a repair cost that is 15%, how much should they budget for tires each year?

   Hint

   Separate base replacement and repair costs into yearly projections.