COST DATA
Reading edition
The items of expense are here segregated in such a manner that they may be used as a basis for figuring the cost of hauling logs under average conditions. These costs are for the truck and trailer as a unit. If a road has to be built, the overhead charge of the road per thousand feet of timber hauled over it together with the cost of upkeep must be added to the figures given below in order to know the total cost of transportation per thousand feet.
3000 FOOT CAPACITY, OUTFIT COMPLETE
The following figures are for a 31⁄2-ton logging truck with a 5-ton trailer. The figures are based upon a 275 working day year.
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 $.114 5
Gasoline, four miles to a gallon @ $.28 per gal. .07
Oil and grease .02
General repairs .03
Total running expenses per mile $.234 5
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 miles 40 miles 50 miles 60 miles 70 miles
Uniform variable charges $ 7.03 5 $ 9.38 $11.72 5 $14.07 $16.41 5
Fixed charges 12.41 8 12.41 8 12.41 8 12.41 8 12.41 8
Total charges (per day) 19.45 3 21.79 8 24.14 3 26.48 8 28.83 3
Total cost per mile, loaded one way only .64 8 .54 5 .48 2 .44 1 .41 2
Total cost per 1000 ft. per mile with 3000 ft. to the load .21 6 .18 1 .16 0 .14 7 .13 7
4000 FOOT CAPACITY, OUTFIT COMPLETE
The following figures are for the 5-ton logging truck equipped with an 81⁄2-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 the original cost $1900.00
Less cost of tires:
2—36-in × 6-in $140.50
4—40-in × 14-in 923.00 1063.50
Total $1063.50 $2963.50 2963.50
Basis for computing $4636.50
RUNNING EXPENSES PER MILE
per mile
Tires, based on cost of $1063.50 and a life of 8000 miles $.12 9
Gasoline, 31⁄2 miles to the gallon @ $.28 per gal. .08
Oil and grease .02
General repairs .03 5
Total running expenses per mile $.26 4
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 miles 40 miles 50 miles 60 miles
Uniform variable charges per 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 .69 4 .58 7 .52 2 .47 9
Total cost per 1000 feet per mile with a 4000 foot load .17 3 .14 6 .13 0 .11 9
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]
A fifty-mile haul may be used as an illustration 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.