Q Could you supply me with the operating costs of a
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Volvo F88 and low-loader trailer (per week, per hour, per day)?
The vehicle is an F88 costing £8,000 with a trailer costing £5,300. Wages amount to £66 per week, road tax is £480 per annum and the insurance costs £400 per annum. Fuel consumption amounts to 8 miles per gallon at 43p a gallon. It is fitted with 14 10.00 x 20 radial tyres with a mileage average of 60,000 A The following cost informa tion based on the data you have given has been compiled.
You will realize that certain factors have been estimated and where your actual performance is different from that assumed you should recalculate and adjust the results accordingly.
Standing costs per week (based on 45 weeks usage)
Licence 0.89 Wages 66.00 Rent & rates 5.00 (estimated Insurance 7.78 Interest 35.47 (at 12% on vehicle and trailer £13,300) £115.14
Running costs p per mile Fuel 5.38 (8 mpg at 43p.a gal)
Oil 0.30 (estimated) Tyres 1.63 (14 at £70 each: life of 60,000) Deprec3.10 (f13,300 less 10%
iation residual value — £11,970 less tyres (E980) — £10,990 ± 350,000 estimated mileage life)
Main1.48 tenance
Therefore, at an average mileage of, say, 700 miles a week the weekly cost will be £115.14 plus running cost (£83.23) = £198.37. Based on a 40 hr week, the cost per hour will be £198.37-:-40 = £4.96. Based on a six day week the daily cost will be £198.37 6 = £33.06. However, a reasonable allocation will have to be made for overheads such as heating, lighting, cost of maintenance facility if provided, telephones, postage and so on. It is suggested that 20 per cent would not be inappropriate.