Question

7.9 A contract is being bid to clear and grub 245 acres. You are considering the cost associated with using a 335-hp dozer. The dozer's O&O cost is $127 per hour. The wage determination for heavy-duty operators is S35 per hour with fringes. Project overhead will run $400 per workday. Assume an 8-hr workday A field engineer has made a site visit and provided you with the following information: The site is reasonably level and the machines will have no problem with bearing or traction. About 10% of the trees are pines (softwood) and the rest are oak (hardwood). The total number of trees per acre is about 300; of that number 200 trees per acre are 1 to 2 ft in diameter. 20 trees per acre are 2 to 3 ft in diameter 10 trees per acre are 3 to 4 ft in diameter You plan to clear and grub in one operation, and then to follow with piling-up in windrows and burning. Burning will require that the dozer be employed twice the time expected for piling-up alone a) What is the estimated clearing and grubbing production rate? b) What is the cost associated with the total operation, including overhead, when only one 335-hp dozer is used? Is it cheaper to employ two 335-hp dozers? c)

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