min max

# pile hammer(owned)
# pile hammer(leased) 6500 13000
Total pile hammer operational 19500 26000
Utilization (weeks/year)
Time of use (hours/week)
Time of use(hours/year) 14625000 19500000
Avg Actual driving figure (ft/h)
Length for the year (ft/year) 292500000 390000000
Drive/set of pad(ft)
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
Selling Price 136.40
Break Even Point 575.97 6911.66
Selling 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
10000
13000
25
Market Potential
30
20
Conventional Curled
# Piles Required 300 300 # Piles Required
Ft/Pile 50 50 Ft/Pile
Total Drive in the Operation 15000 15000 Total Drive in the Operation
Drive/Hour(ft) 150 200 Drive/Hour(ft)
Time Taken for operation(Hours) 100 75 Time Taken for operation(Hours)
Cost/Hour(Equipment, $) 714 714 Cost/Hour(Equipment, $)
Total cost excluding cost of pad 71400 53550 Total cost excluding cost of pad
# of sets required 20 1 # of sets required
# of pads/set 24 6 # of pads/set
Total # of pads 480 6 Total # of pads
Cost/set($) 150 Cost/set($)
Total Cost of pads 3000 0 Total Cost of pads
Total Cost including cost of pad 74400 53550 Total Cost including cost of pad
Cost/foot($/ft) 4.96 3.57 Cost/foot($/ft)
Total Revenue($) 225000 225000 Total Revenue($)
Gross Profit($) 150600 171450 Gross Profit($)
Difference($) - Total Savings 20850 Difference($) - Total Savings
Total Savings/Foot($/ft) 1.39 Total Savings/Foot($/ft)
Clearly 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.
Selling 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
Kendricks Foundation Corey Company
Conventional Curled
300 300
40 40
12000 12000
160 200
75 60
714 714
53550 42840
50 1
12 5
600 5
120 222.20
6000 222.2
59550 43062
4.9625 3.5885
324000 324000
264450 280938
16488
1.374
Clearly 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.
Corey Company