What is the operating con for the dozer in the application


Problem

A 400-fwhp diesel-powered dozer will be used to surrey' a scraper fleet. This dozer was purdused for $395,000. The estimated salvage value at the cod of 4 yr is $105,000. The company's cost of capital is 7.6%. The work efficiency will be equal to a 50.min hour. The engine will work at Poll throttle while push loading the scrapers (59% of the time) and at three-quarter throttle to travel and position. The crankon capacity is 16 gal. and the company has a policy to chute oil every 150 hr. The annual cost of repairs equals 68% of the straight-line machine depreciation- Fuel cost 51.03/gal. and oil is S233/gaL The cost of mita lubricants and filters is 50.65/1w. The dour will work 1,800 blyr. In this usage. the estimated life feecutting edges is 410 hr. The local price foe a set of cutting edges is 51,300. What is the operating con for the dozer in this application?

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Microeconomics: What is the operating con for the dozer in the application
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