Market Potential min max # pile hammer(owned) 13000 # pile hammer(leased) 6500 13000 Total pile hammer operational 19500 26000 Utilization (weeks/year) 25 Time of use (hours/week) 30 Time of use(hours/year) 14625000 19500000 Avg Actual driving figure (ft 20 Length for the year (ft/year) 292500000 390000000 Drive/set of pad(ft) 10000 Market Potential (sets/year) 29250 39000 Production (basis/month) 250 Production (basis/year) 3000 Existing Equipments per unit per Month per Year Total Cost 444.36 111090 1333080 Variable Cost 133.32 33330 399960 Material 46.92 11730 140760 Labour 86.4 21600 259200 Fixed Cost 311.04 77760 933120 Contribution Margin 40% 88.88 Selling Price 222.20 Break Even Point 874.89 10498.65 $150000 of Permanent Tooling per unit per Month per Year Total Cost 207.54 51885 622620 Variable Cost 81.84 20460 245520 Material 46.92 11730 140760 Labour 34.92 8730 104760 Fixed Cost 125.7 31425 377100 Contribution Margin 40% 54.56
Sheet 1Market PotentialKendricks FoundationCorey
CompanyminmaxConventional CurledConventional Curled# pile
hammer(owned)13000# Piles Required300300# Piles Required300300#
pile hammer(leased)650013000Ft/Pile5050Ft/Pile4040Total pile hammer
operational1950026000Total Drive in the Operation1500015000Total
Drive in the Operation1200012000Utilization
(weeks/year)25Drive/Hour(ft)150200Drive/Hour(ft)160200Time of use
(hours/week)30Time Taken for operation(Hours)10075Time Taken for
operation(Hours)7560Time of
use(hours/year)1462500019500000Cost/Hour(Equipment,
$)714714Cost/Hour(Equipment, $)714714Avg Actual driving figure
(ft/h)20Total cost excluding cost of pad7140053550Total cost
excluding cost of pad5355042840Length for the year
(ft/year)292500000390000000# of sets required201# of sets
required501Drive/set of pad(ft)10000# of pads/set246# of
pads/set125Market Potential (sets/year)2925039000Total # of
pads4806Total # of
pads6005Cost/set($)150Cost/set($)120222.20Production
(basis/month)250Total Cost of pads30000Total Cost of
pads6000222.2Production (basis/year)3000Total Cost including cost
of pad7440053550Total Cost including cost of
pad5955043062.2Existing Equipmentsper unitper Monthper
YearCost/foot($/ft)4.963.57Cost/foot($/ft)4.96253.5885166667Total
Cost444.361110901333080Variable Cost133.3233330399960Total
Revenue($)225000225000Total
Revenue($)324000324000Material46.9211730140760Gross
Profit($)150600171450Gross
Profit($)264450280937.8Labour86.421600259200Difference($) - Total
Savings20850Difference($) - Total Savings16487.8Fixed
Cost311.0477760933120Total Savings/Foot($/ft)1.39Total
Savings/Foot($/ft)1.3739833333Contribution Margin40%88.88Selling
Price222.20Clearly in both the cases of Kendricks as well as of
Corey, there is a increase in gross profits which is expected as
the CMI Pads are highly effective.Break Even
Point874.8910498.65
$150000 of Permanent Toolingper unitper Monthper YearTotal
Cost207.5451885622620Variable
Cost81.8420460245520Material46.9211730140760Labour34.928730104760Fixed
Cost125.731425377100Contribution Margin40%54.56Selling
Price136.40Break Even Point575.976911.66Selling Price of pads
against existing equipments is around $222.20, greater than the
selling price against the purchase of $150000 of permanent tooling
being $ 136.40
