If a crane company charges $250 per hour of operation, how much will a crane cost for four days of 8 hours each day and one day of 4 hours, in addition to 4 hours of travel time?

If a crane company charges $250 per hour of operation, how much will a crane cost for four days of 8 hours each day and one day of 4 hours, in addition to 4 hours of travel time?

• A. $9,000
• B. $11,000
• C. $12,000
• D. $10,000

Answer: (D)

You add up all the billed hours and multiply by the hourly rate. Four days of 8 hours is 32 hours, plus 4 hours on the extra day makes 36 hours of operation. Travel time is 4 hours, so total billable hours are 36 + 4 = 40 hours. At $250 per hour, 40 × 250 = $10,000. So the crane cost is $10,000.

You add up all the billed hours and multiply by the hourly rate. Four days of 8 hours is 32 hours, plus 4 hours on the extra day makes 36 hours of operation. Travel time is 4 hours, so total billable hours are 36 + 4 = 40 hours. At $250 per hour, 40 × 250 = $10,000. So the crane cost is $10,000.