2.2. Annual Use and Hourly Usage Discussion

Try these first

1. 1.

   What is the initial purchase price of the dump truck?

   Hint

   Look for the initial cost in the details.

2. 2.

   Calculate the annual depreciation if the useful life is 12.5 years.

   Hint

   Use the formula considering tire costs.

3. 3.

   What is included in ownership costs?

   • Depreciation
   • Fuel
   • Wages

   Hint

   Remember the factors calculated earlier.

4. 4.

   True or False: Operating costs include fuel and labor expenses.

   • True
   • False

   Hint

   Think about what it costs to operate the truck.

5. 5.

   Given the known values and an adjusted fuel cost of 75 rupees per liter, recalculate the hourly fuel cost for the dump truck.

   Hint

   Change the price in the previous fuel calculation formula to solve it.

6. 6.

   If the labor adjustment factor increases to 1.2, recalculate the FOG cost.

   Hint

   Substitute the new labor adjustment factor into the FOG calculation.