Looking at just repair cost and tire cost, what is the difference in cost (repair and tire only) for two (2) identical wheel loaders (in the third year of operation), if one is working in severe conditions and the other is working in favorable conditions: (Use straight-line deprecation method)

Initial Equipment Cost: $125,000

Tire Cost $ 12,000

Operation Time 2,000 hours/year

Note: Equipment has seven (7) year life