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A 4-metre self-propelled combine harvester with a 65 kW diesel engine, operating at 5km/h is used to harvest 200 ha of grain per year.

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A 4-metre self-propelled combine harvester with a 65 kW diesel engine, operating at 5km/h is used to harvest 200 ha of grain per year. The purchase price of the combine is $15,000. An interest rate of 3.5 % of the initial price of the combine is charged annually. The diesel fuel consumption of the combine is 15 litres per hour and the cost of diesel fuel is $0.80/litre. The lubricant consumption is 15% of fuel cost. The field efficiency of the combine is 70 %. The machine is be depreciated over a period of 10 years. The salvage value of the combine is assumed to be 10% of the purchase price. The average annual charge for repairs and maintenance is considered to be 15 % of the initial price of the combine. Assume the yearly charge for taxes, insurance and shelter to be 2 % of the purchase price of the machine. The operator is paid $8 per hour. Determine the total harvesting cost per hectare.

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