Tractor total hourly cost is Rs.540 at 800 h/year and Rs.510 at 1000 h/year. Annual fixed cost and hourly variable cost stay unchanged. Find variable cost in Rs./h as an integer.
Let annual fixed cost F and hourly variable cost V. Equations areF/800+V=540 andF/1000+V=510. Subtracting givesF(.00025)=30,so F=120000. Then V=510−120=**390 Rs./h**. Extra annual use spreads the same fixed cost over more hours.
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