Part 2 (2/2)
Cost of equipment (as a basis) $6700.00 Less resale value at expiration of 4 years at 25% of the original cost $1675.00 Less cost of tires, 2--36” 6” $140.50 4--40” 12” 776.00 916.50 -------- -------- Total $916.50 $2591.50 2591.50 -------- Basis for computing $4108.50
RUNNING EXPENSES PER MILE
Per Mile Tires, based on a cost of $916.50 and a life of 8000 miles $ .1145 Gasoline, four miles to a gallon @ $ .28 per gal. .07 Oil and grease .02 General repairs .03 -------- Total running expenses per mile $ .2345
FIXED CHARGES PER 275 WORKING DAY YEAR
Depreciation, based on 25% per year on $4108.50 $1027.12 Interest on money invested at 6% (figured on truck less cost of tires) 347.01 Driver at $7.00 a day 1925.00 License 27.00 Insurance, Fire, Theft and Liability based on $1 a hundred on 90% of the value of the new truck for fire and theft, and a flat rate of $33.75 for liability 90.75 ------- Total fixed charges for 275 day year $3416.88 Total fixed charges per day 12.418
TOTAL EXPENSES
30 40 50 60 70 miles miles miles miles miles Uniform variable charges $7.035 $9.38 $11.725 $14.07 $16.415 Fixed charges 12.418 12.418 12.418 12.418 12.418 Total charges (per day) 19.453 21.798 24.143 26.488 28.833 Total cost per mile, loaded one way only .648 .545 .482 .441 .412 Total cost per 1000 ft. per mile with 3000 ft. to the load .216 .181 .160 .147 .137
4000 FOOT CAPACITY, OUTFIT COMPLETE
The following figures are for the 5-ton logging truck equipped with an 8-ton trailer, based on a 275 working day year:
Cost of equipment (as a basis) $7600.00 Less resale value at expiration of four years at 25% of original cost $1900.00 Less cost of tires:
2--36-in. 6-in $140.50 4--40-in. 14-in 923.00 -------- Total $1063.50 1063.50 -------- $2963.50 2963.50 -------- Basis for computation $4636.50
RUNNING EXPENSES PER MILE
per mile Tires, based on cost of $1063.50 and a life of 8000 miles $.129 Gasoline, 3 miles to the gallon @ $.28 per gal. .08 Oil and grease .02 General repairs .035 ------ Total running expenses per mile $.264
FIXED CHARGES PER 275 DAY YEAR
Depreciation, based upon 25% per year on $4636.50 $ 1157.13 Interest on money invested at 6% (figured on equipment less cost of tires) 392.19 Driver at $7.00 a day 1925.00 License 27.00 Insurance, fire, theft and liability, based on $1 a hundred on 90% of the value of the new truck for fire and theft, and a flat rate of $33.75 for liability 101.75 ------- Total fixed charges for 275 day year $3603.07 Total fixed charges per day 12.92
TOTAL EXPENSES
30 40 50 60 Uniform variable charges per miles miles miles miles mile $.247 $ 7.92 $10.56 $13.20 $15.84 Fixed charges per day 12.92 12.92 12.92 12.92 Total charges per day 20.84 23.48 26.12 28.76 Total cost per mile loaded one way only .694 .587 .522 .479 Total cost per 1000 feet per mile with a 4000 foot load .173 .146 .130 .119
The above costs will be found to be approximately correct for average operations. They will vary somewhat with the road conditions, loads, grades, and the efficiency of the driver. These variations, however, will be slight. They will not amount to more than one cent per thousand feet per mile of haul. The investment pays the owner six per cent and provides renewals for all time. The interest charge is based on the total cost of the equipment less the cost of the tires. The tire cost is deducted in figuring the interest charges because this item is covered under running expenses. The resale value of the truck at the end of four years is not deducted from the interest charge, because this sum is tied up for that length of time. Renewal for the equipment is taken care of by the creation of a sinking fund based on an average life of four years. Theoretically, on a 5-ton truck, $1157.13 is put aside each year for four years at the expiration of which time the aggregate of these savings together with the resale value of $1900, automatically provides for the purchase of new equipment.[7]
[7] Timberman. Feb., 1918. Page 60.
A fifty-mile haul may be used as an ill.u.s.tration for figuring the total running expense of the 5-ton truck. This means that the truck makes trips enough to total fifty miles for the day's run. The cost per mile, including gasoline, oil and repairs is 26.4 cents. It will, therefore, cost $13.20 for the fifty miles. To this amount must be added $12.92, daily overhead charge, making a total of $26.12 for fifty miles traveled or 52.2 cents a mile. With an average load of four thousand feet the cost will be 13.0 cents per mile per thousand feet. A glance at the table will show that the greater the mileage and the larger the load, the less will be the overhead expense and consequently the cost per mile per thousand feet. To these items must be added the cost and maintenance of the road if one has to be built.
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