To haul a load of bales 25 miles shouldn't have cost that. Figure one hour one the road total. 25+25+5 miles to his farm. So let's say $40/hour for his time(no other expenses.) At 8mpg average, he'd have used 7.5gal fuel and at 3.79/gal it'd be $28.43. Let's assume he has 16" tires that cost 220.00 each and he gets 50000 miles from them(more than possible), it costs him 0.0176(1.76cents) per mile. That's $2.12 if we double it(just to be able to profit from the tires) Let's say insurance is 10000/year and he hauls 35000miles/year or $0.35/mile, or $21.00. Now let's say registraton is $2000.00/year or 0.057/mile or 3.42 for the trip. Let's say he spends another $7000/year on safety inspections and general maintenance(excl. tires) or $12.00 for the trip. He has $45,000 in the truck and trailer, which depricates to $5000 in 5 years. $8000/year in equipment costs or 13.71 for the trip. That brings our total to $120.68 I forgot loading time. Let's assume it took 45 minutes to load and unload, ans we'll throw in an extra 15 mintues for driving for safe measure. That now brings our total(including $81.06 profit) to 160.68. Mike got charged 215, which is $54.32 above the maximum fair price. Just my way of looking at it.
This post was edited by farmer boy at 07:07:27 04/01/12.
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