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Using the TI-59 Programmable Calculator to Estimate Operating Costs and Hauling Rates for Bulk Milk Assembly

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Abstract

The purpose of this publication is to present a ready means of estimating the effect of a change in the cost of one factor, like fuel, on overall operating costs. The resultant estimates are useful to both handlers and haulers. Handlers may use the estimates in planning for anticipated future cost changes. Haulers must keep track of costs to be sure that rates are sufficient to accumulate capital for timely replacement of the tank truck fleet. Together the estimates provide a common basis from which rate negotiations can be started. The estimates are developed using economic engineering techniques by combining individual item costs, from fuel and tires to purchase price and maintenance, into uniform operating costs per unit of product, time and distance. These estimates may be broken out into fixed and variable cost components. To make the calculations speedy and accurate a TI-59 programmable calculator is used*(l). With its assistance the effect of a fuel price increase on total per mile costs, to mention one example, can be determined within seconds.

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A.E. Ext. 82-26

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1982-08

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Charles H. Dyson School of Applied Economics and Management, Cornell University

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