b'theftlosses;laborratesandpractices.Alloftheseconditionswill affecttherentalrateofanitemofequipment.Forexample,if climatic conditionslimittheworkingseasontoninemonths,themonthlyrental ratemustbeincreasedappropriately.Theincreasedmonthlyrateis_,,, determinedbydividingthemonthlybaserate(BR)by1/12or75%(such percentageiscalledanAdjustmentPercentage(AP)) . BR=$12.50 Ninemonthseasonaladjustment=BR=$12.50=$16.67 AP75% Whileworkingseasonlengthisperhapsthemostsignificantfactor withrespecttobaserateadjustments,theotherconditionsmentioned abovecanalsobecritical.Forexample,assumethatthe$100itemof equipmentmentionedaboveusesasmallgasolineengine.Throughuseand abuse,thegasolineenginemaylastonly11/2yearsoftheexpected3 yearlifeforthecompletemachine.Daytodaymaintenancenecessaryto keepthemachineworkingisconsideredanoverheaditem,butwhenanew gasolineenginemustbepurchasedandinstalled,acapitalexpenditureis made.Suchcapitalexpenditures,calledextraordinarymaintenance,must berecoveredintherentalrates .Theextraordinarymaintenanceadjustment percentagecanbedeterminedbymultiplyingtheinitialcostoftheitem bytheexpecteddepreciablelifeoftheitemanddividingtheproductby theproductplustheextraordinarymaintenancecostmultipliedbythe expecteddepreciablelifeoftheitemofextraordinarymaintenance.The formulaisasfollows: AP=$100x3years=300=80% $100x3years+$50x11/2years300+75 Theadjustedbaseratewouldthenbedeterminedbydividingtheoriginal baseratebytheextraordinary maintenanceadjustmentpercentage. AdjustedMonthlyRentalRate=B $12.50=$15.63permonth R= AP80% Ifbothaninemonthseasonaladjustmentandanextraordinarymaintenance adjustmentmustbemade,thecomputationwouldbeasfollows: AdjustedMonthlyRate=BR=$12.50=$20.83permonth ~(-)~(~A~P-2.,_) A-P- (75%){80%) 1Ifmorethantwoadjustmentsinthebaserentalratemustbemade,the aboveformulamaybeexpandedtoincludetheadditionaladjustingpercentages. Athoroughanalysisofconditionsinyourareashouldbemadeandlocal rentalratesdetermined.Spacehasbeenprovidedinthe\' 1 MRCARENTAL RATEGUIDE"forinsertionofratesadjustedforlocalconditions. JAMESMcCAWLEY JamesMconeofthe11grand"menoftheroofingindustry, Cawley, passedawayquietlyinhissleeponFebruary23,1969,inChicago,atthe ageof69,fromamassivecerebralhemorrhagesufferedthreedaysbefore athisdesk.Mr.Mccawleywasalong-timefriendandsupporterofour Association.Hisparticipationinthe"Blow-Offs"sessionofthe1968'