For your depreciation cost instead of using the origional purchase price of the tractor try using the cost of the replacement, how does that change things, just out of interest?
This was done to death in a thread a while ago .....
I know how to work out depreciation, so does my accounts, bank-manger and HMRC - that tractor depreciated £35k in 5 years / 5k hrs = £7/hr
cost to change is of course also an interesting number but it is NOT depreciation ........... it’s a capital (requirement) cost and not a running cost
this is basic accountancy/ benchmarking, shocking that people running businesses don’t understand this kind of stuff very well
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