Purchase Solution

Total Maintenance Cost of a Truck

Not what you're looking for?

Ask Custom Question

A large rear dump truck working in a coal mining operation under good conditions has a current purchase price of $ 2,000,000, including $ 200,000 for the initial cost of six tyres. What is the net capital cost?

If the repair factor is 0.25 x 10-4 and for good conditions the job factor is 0.8, determine the estimated repair cost per operating hour?

If major overhaul costs are estimated at 15% of the net capital cost and this occurs every 20,000 hours determine the major overhaul cost per operating hour?

If maintenance labour costs are $40/ person hour, a single maintenance person is required and the maintenance labour requirement is estimated at 0.8 person hours per operating hour determine the maintenance labour cost?

Determine the total maintenance cost?

Purchase this Solution
Solution Summary

The solution explains how to calculate the total maintenance cost

Solution Preview

a. Net capital cost = Total cost less the cost of tyres = 2,000,000-200,000 = $1,800,000

b. Estimated repair cost per operating hour = Net capital cost ...

Purchase this Solution
Free BrainMass Quizzes
Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

View More Free Quizzes
Related BrainMass Solutions

  • Lease/Buy Finance Problem

    The lease terms, which include maintenance, call for a $10,000 lease payment (4 payments total) at the beginning of each year. DTC's tax rate is 40%. Should the firm lease or buy?

  • The Net Present Value Method

    Because of the increased capacity, reduced maintenance costs, and increased fuel economy, the new truck is expected to generate cost savings of $8,000. At the end of 8 years the company will sell the truck for an estimated $20,000.

  • Business Related Decision Making

    If Werner buys the truck, it would purchase a maintenance contract that costs $1,000 per year, payable at the end of each year. The lease terms, which include maintenance, call for a $10,000 lease payment at the beginning of each year.

  • Compute the Cash Payback Period and Net Present Value

    Because of the increased capacity, reduced maintenance costs, and increased fuel economy, the new truck is expected to generate cost savings of $8,000. At the end of 8 years the company will sell the truck for an estimated $28,000.

  • Keys and Relationships for Driver Log

    Entities and Attributes for Fleet Truck Maintenance This document was created by Smith Systems Consulting at the request of Huffman Trucking Maintenance Department.

  • Regression of yearly truck maintenance expenses

    of the estimate) FACTS: A trucking company wants to predict the yearly maintenance expense (Y) for a truck using the number of miles driven during the year (X1) and the age of the truck (X2 in years) at the beginning of the year.

  • Capital Budgeting

    Lotus Engineering is considering including two pieces of equipment, a truck and an overhead pulley system, in this year's capital budget. The projects are independent. The firm's cost of capital is 12%.

  • County of Maxnell: Sanitation Department Journal Entries

    Feb 1- Borrowed an additional $130,000 from a local bank at a 12 percent annual interest rate. March 1- Ordered a truck at an expected cost of $108,000 April 1- Received the truck and made full payment. The actual cost amounted to $110,000.

  • Trucking Company Inventory magement: carrying cost,

    Each truck costs the company $8,000. ? Interest rate on the cost of capital is 20% per annum (annually). ? Each truck incurs a storage cost of 3% per annum of the truck cost. ?

View More Related Solutions