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 40 50 60 Uniform variable charges per miles miles miles miles 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 .694 .587 .522 .479 Total cost per 1000 feet per mile with a 4000 foot load .173 .146 .130 .119 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] [7] Timberman. Feb., 1918. Page 60.