price of tractors
Annually, depreciation and interest costs total $9,900 (($18.70 per hour depreciation + $14.30 per hour interest) x 300 hours). These $9,900 of costs are incurred by owning the tractor and do not change with annual use. On a per hour basis, depreciation and interest costs increase as hours of use decrease. At 150 hours of use, for example, depreciation and interest costs equal $66 per hour ($9,900 / 150 hours).