7.2. Variability of Operating Costs

Try these first

1. 1.

   What is the fuel consumption rate of a gasoline engine per horsepower hour?

   Hint

   Refer to consumption rates for gasoline engines.

2. 2.

   What are high wear items?

   Hint

   Think of parts that deteriorate quickly in machinery.

3. 3.

   What is the fuel consumption rate for diesel engines?

   • 0.04 gallons
   • 0.06 gallons
   • 0.08 gallons

   Hint

   Recall the comparative consumption rates discussed.

4. 4.

   True or False: Operating costs are usually more variable compared to ownership costs.

   • True
   • False

   Hint

   Consider the nature of how costs accumulate.

5. 5.

   A company operates a fleet of diesel and gasoline engines. If the diesel engines use 0.04 gallons per horsepower-hour for 8 hours daily, while gasoline ones use 0.06 gallons, calculate the total fuel cost per week if the diesel fuel costs $3.00 per gallon and gasoline costs$3.50.

   Hint

   Calculate daily costs and extend it to the week.

6. 6.

   An excavator needs an average of 0.25 liters per horsepower per hour at 300 horsepower. Assess how much lubricant it will need in 10 hours of operation, and at what cost if the lubricant is priced at 25 rupees per liter.

   Hint

   Break down into hourly consumption and scale up.