Understanding the costs associated with the machinery used to harvest timber is necessary in order to conduct a profitable job. The cost associated with timber harvest dictates the price that a contractor can pay for timber. The most accurate way to calculate cost is to use historical records of your operation. If you don't have the records for your machine or want to estimate how a new piece of machinery will affect your cost you can use machine rate calculations.

A machine rate calculation uses data collected for machinery to make estimations of cost based on information for a piece of machinery. The required inputs are listed below followed by the cost equations.

Machine Rate Calculation

Inputs

Calculations

Ownership Cost

Operating Cost

Labor Cost

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Created: 2007-05-08 , Updated: 2007-08-03