Chapter 10 Pricing Equipment Renting Equipment There can be advantages to renting rather than owning construction equipment; including: The builder does not have to keep a large collection of equipment for occasional use.
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Chapter 10Pricing Equipment
= ($20,000 + $600 + $4,000)/2
= 0.90 gallons/hour
hours used per year
= $6,887 / 1,000 = $6.89
= 0.90 gals x $2.80 per gal.= $2.52
= 0.1 x $2.52 = $0.25