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)perating ost ssessment:

13th June 1975, Page 28
13th June 1975
Page 28
Page 28, 13th June 1975 — )perating ost ssessment:
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Which of the following most accurately describes the problem?

ommer ommando G1811

ERAT1NG the Commer Comndo G1811, road teSted in May 30, is likely to cost t over 28p a mile when !rheads are taken into isideration.

Ising standard cost figures wages, rent and rates insure and running cost figures lubricants, tyres and mainance from CM's 197.5 Tables Dperating Costs it is possible compile the following table. ore calculating the interes` 1 depreciation factors, howr, an amount of £2,000 has n added to the cost of the :..tive unit given in the road : report to represent the price the trailer and a total unm weight of tractive unit trailer has been assumed at ons for licensing purposes.

riding casts (per week) £

icences 8.80 gages 47.77 .ent and rates 4.25 isurance 10.26 yterest 18.75 al 89.83

ming costs (per mile)

5.00 ubricants 0.23 yres 2.01 faintenance 5.05 epreciation 2.14 otal 14.43

rher data on which the table ,ased is annual interest rate per cent ; all standing cost ors are based on a 45-week .; cost of fuel 47p a gallon ;

consumption 9.4mpg ; cost yres £1000; mileage life of s 50,000; mileage life of cle 240,000; and total price 'elide £7030.

ssuming an average mileage 1,000 a week, the cost per becomes £89.83 divided by D (8.89p) plus the running of 14.43p a mile equals lp a mile.

dding to this an appropriaof 20 per cent to represent heads costs which have not I catered for in the table, gives a total operating cost 8.09p a mile.

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