Quick guesstimate
This is only for liquid production!
My estimate was & 8.00 per gal…Wrong
48.98 1 gal container shipping cost $5.00/gal up to 1000 mi.
* I know this to be accurate(shipping).
28.84 5 gal container($144.20) shipping cost $20.00/5 gal up to 1000 mi
26.49 55 gal drum($1456.95) shipping cost $275 /55 gal drum up to 1000 mi
18.48 275 gal tote($5,082) shipping cost $1375 / tote up to 1000 mi
Costumers pays shipping
First get the costumers then lease the machines it saves them shipping
Average of the above = $30.70
CALCULATIONS AT MAX CAPABILITY (SC only)
24/7 =168 hr per week
=x 583 gal per hr=24hr
=13,992 gal per day x 7
= 686,000 gal per week
=4wks=2,744,000 gal per mo
Potential Gross income =2,744,000 gal per mo x $30.70 average price per gal= $84,240,800
12 mo x 84,240,800=$1,010,889,600
That’s $276,956.0.54 / day @ 24/7
“O” forgot FT Wayne’s 4000/day unsure if that’s 24/7(not counted here)
Costs
Labor average $25.00 / hour
All staff 20 @ $25.00 / hr 168 hr / wk =84,000/wk…x 4 wks = 336,000./.mo…per yr 4,032,000
Overstated…. ALL will not be working 2nd & 3rd shifts
Insurance (product liability)………………………………… $35,000 / mo…per yr 420,000
Insurance (Plant)………………………………………………………$6,000 / mo…per yr 72,000
Benefits (Labor) $7500 x 20=…………………………………$150,000 / mo…per yr 1,800,000
Plant & equipment ………………………………………………$100,000 / mo…per yr 1,200,000
Water @ .05 / gal x using 2,744,000 gal /mo= ….$137,200.00 / mo…per yr 1,646400
Electric……………………………………………………………… $300,000 / mo…per yr 3,600,000
Down time 10% of 24/7 = 2.028 hrs/day x 7=14.196hr / wk
4.2 gal produced / hr @ $30.70/hr=$745.00/day x 7=
$5220.2 x 4=………………………………………………………$20880.8 / mo…per yr=2,509,569.
Salt,Packaging, labeling, bottling……..(this will be a big number say 5% of gross50,000,000)
Total costs… $1,085,080 / mo…per yr=13,020,960…above 50,000,000+13,020,960=73,020,000
Potential Gross income..................(-)$1,010,889,600 per yr
1,010,889,600 – 73,020,000= 937,869,600
Question
!.how will this est effect the PPS? IE: 937,869,600 profit
2.how will this effect corporate valuation
NOTE: Profit w/o salt, packaging, labeling, bottling
According to these numbers (of course a guestimate) there’s plenty of $$$ for investment in plant & equipment w/o borrowing or floating more shares.
NOTE: would expect the largest volume of sales goes to distributors and do so by the tote that will bring totals down probably in a little more than half.
There are some distributors that have units (leased or purchased?) at their locations expect their pp gal is equal to what they were paying for the liquid, yet they get the benefit of saving what would equal ½ the cost for shipping PCTL gets the other half. IE: if shipping was $5000.00 / mo they save $2500 we capture $2500 more. That would be included in the lease. Note: if leased the machines remain on our books & we take depreciation. Advantage to customer if it goes down we immediately switch it out for repair paying all costs.
These calculations are for liquid production only in S.C.
Hope they have an electric generator.
Comments corrections suggestions welcomed...might want to sticky
AI
