Using the following information, determine the fixed and operating costs for a scraper.
Actual cost (delivered)—$1 56,000
Horsepower rating—200 hp
Cost of tires—$6,000
Salvage value—20 percent
Useful life—6 years (8,400 hours)
Total interest—7 percent
Length of loan—6 years
Total insurance, taxes, and storage—5.5 percent per year
Fuel cost—$3.90 per gallon
Fuel consumption rate—0.06 gallons per hp per hour
Power utilization—85 percent
Use factor—40 minutes per hour (66.67 percent)
Lubrication—8 quarts of oil at $4.50 per quart
Oiler labor—2.2 hours at $27.65
Lubrication schedule—Every 1 00 hours
Life of tires—3,500 hours
Repair to tires—1 2 percent of deprecation
Repairs to equipment—1 20 percent over useful life