Question 3 (1 point) Practice Question #3 A contractor has decided to start using ABC for their projects with their new piece of equipment the contractor just received which is the same model as the older piece of equipment it replaces. A project team is looking forward to using the new piece of equipment and plans on having it on the project site 3 different times and they'll need it a total of 48 hours for the project. The contractor will pay a lease cost of $1600 per quarter for the new piece of equipment and a round trip delivery of the equipment to a local project location is $150. Scheduled maintenance last year on the older piece of equipment was done every 4 months, consisting of 23 hours of a mechanic's time each time and about $600 of parts each time. Mechanics are $124/hr, and last year there was also unscheduled maintenance -- and although the equipment manufacturing made these 4 repairs using their own mechanic, the contractor had to pay $800 for the parts for all these repairs because the manufacturer didn't provide them. The older piece of equipment (that the new piece of equipment replaced) that was sold off was used for 780 hours in the last 12 months and was used for 116 days on projects. The forecast for the new piece of equipment is it will be used 20% more for project work, but the contractor doesn't expect the annual maintenance and repair costs for the new piece of equipment to be any more than the older piece of equipment despite the higher usage. How much should the project be charged to use the new piece of equipment? Your Answer: Answer Question 3 (1 point) Practice Question #3 A contractor has decided to start using ABC for their projects with their new piece of equipment the contractor just received which is the same model as the older piece of equipment it replaces. A project team is looking forward to using the new piece of equipment and plans on having it on the project site 3 different times and they'll need it a total of 48 hours for the project. The contractor will pay a lease cost of $1600 per quarter for the new piece of equipment and a round trip delivery of the equipment to a local project location is $150. Scheduled maintenance last year on the older piece of equipment was done every 4 months, consisting of 23 hours of a mechanic's time each time and about $600 of parts each time. Mechanics are $124/hr, and last year there was also unscheduled maintenance -- and although the equipment manufacturing made these 4 repairs using their own mechanic, the contractor had to pay $800 for the parts for all these repairs because the manufacturer didn't provide them. The older piece of equipment (that the new piece of equipment replaced) that was sold off was used for 780 hours in the last 12 months and was used for 116 days on projects. The forecast for the new piece of equipment is it will be used 20% more for project work, but the contractor doesn't expect the annual maintenance and repair costs for the new piece of equipment to be any more than the older piece of equipment despite the higher usage. How much should the project be charged to use the new piece of equipment? Your
