APPENDIX E 

 Truck Ownership and Operating Costs ^ 



Fixed Costs 



Registration and bonding costs were established in relation to truck 

 capacity by interpolating from information obtained on field schedules. 

 License costs were established at $3 per vehicle, the typical value in New 

 England. Cost of antifreeze, at $2 per gallon, was determined by radiator 

 capacity and provision for temperatures of -30 °F. 



Federal excise tax has been included at $1.50 per year for 1,000 

 pounds taxable gross weight paid by registrant on truck combinations 

 over 26.000 G.C.W.- Insurance rates for trucks of various sizes were in- 

 terpolated from information on field schedules. Variation exists from 

 state to state so modal values were used. 



Fixed costs for trucks are summarized in Table E-1. 



Table E-1. Fixed Cost Charges Per Year for 190 and 220 Crate Trucks. 



Capacity of Truck — Crates 

 Item 190 220 



* 247 operating days per year. 



Variable Costs 



As truck size increases the number of miles traveled per gallon of 

 gasoline declines. On the basis of data obtained in the survey of assem- 

 bly firms and from secondary sources, rates of performance for trucks 

 per gallon of gasoline were set at seven miles for the 190-crate truck 

 and six miles for the 220-cratc truck. 



Tire cost is a function both of time and wear. Records of assembly 

 firms indicate that tires have a life span of six years due to deterioration 

 and rot. Within that time limit, however, tread wears out in direct pro- 



^ Adapted from Rogers and Bardwell, op. cit. 



- Motor Truck Facts, Auto. Mfgr. Assoc, Detroit, 1957 ed., pp. 28-33. 



55 



