Economics & Marketing

Economics & Marketing - Table 2

Item Description in Dollars

Depreciation
(a) Interest
(b) Ins. & Taxes
(c) Total

Land: Taxes (d) - 1,680 - 1,680

Subtotal,land Interest - - 280 280

Buildings:

Service Building 2,000 sq.ft. 2,300 2,760 920 5,980

Concrete Pad mixing 19.75 cu. yds. 82 99 33 215

Paving Driveway, Parking, Aisles, etc. 1,033 1,240 413 2,686

Greenhouses Structure, Heating & Cooling equipment 4,196 5,036 1,679 10,910

Plastic Double Polyethylene 2,016 242 81 2,338

Benches (e) Redwood lathe top; 13,056 sq. ft. 1,404 1,685 562 3,651

Plumbing Wells, tanks, pumps 151 181 60 392

Water mains 530 636 212 1,379

Time Clocks 78 47 16 140

Leader Tubes 536 161 54 750

Wiring Wiring, receptacles, switches, etc. 559 671 224 1,453

Subtotal, buildings 31,855

Machinery and Equipment:

Office 186 112 37 335

Lunchroom 109 65 22 196

Fertilizer equipment 365 153 51 569

Spray Equipment 114 48 16 178

Miscellaneous spray equip. 71 30 10 111

Shop equip. 370 155 52 577

Electrical generator 20 KW, 1 phase 47 57 19 123

Emergency Heaters 72 30 10 112

Fuel Tank 12,000 gal. 289 347 116 752

Shade Cloth 440 132 44 616

Blackcloth System 20,000 sq. ft., automated 6,111 2,567 856 9,534

Internal transportation Metal carts 158 95 32 285

Tractor 30 HP with buckets 1,315 789 263 2,367

Truck 14 ft. for pickup/delivery 1,463 615 205 2,283

Subtotal, Machinery & Equipment 23,997 17,951 5,984 18,037

Total: land, buildings, machinery, & equipment 50,172

General Overhead:

Operator Salary 25,000

Supervisor Salary 17,000

Utilities Electricity 3,466

Fuel (L.P. gas) 5,220

Telephone 2,400

General Repairs & Maintenance 3,600

License, dues, etc. 300

Advertising 840

Travel & Entertainment 600

Office Expenses 360

Professional Fees 570

Miscellaneous 570

Insurance: General Health, Workman Compensation, Unemployment 3,600

Bad Debts 960

Interest on Average (one-half) overhead 5,287

Subtotal, Overhead 69,773

Total annual fixed costs 119,945

Estimated annual fixed costs for a floriculture firm in U.S.D.A. climatic zone 8, Texas, 1992.

(a) Depreciation is estimated by dividing initital cost adjusted fo rsalvage value (zero assumed) by years of useful life.

(b) Interest is estimated at 10% fo the average (1/2) value of building or equipment based on the initial cost adjusted for salvage value.

(d) Taxes are estimated at the rate of 2% per year of assessed value (value listed).

(e) Assuming 13,056 sq. ft. of usuable bench space, annual ownership costs equal: $9.19 per sq. ft. per year.

Return to Economics & Marketing

Item	Description	in Dollars
Item	Description	Depreciation (a)	Interest (b)	Ins. & Taxes (c)	Total
Land:	Taxes (d)	-	1,680	-	1,680
Subtotal,land	Interest	-	-	280	280
Buildings:
Service Building	2,000 sq.ft.	2,300	2,760	920	5,980
Concrete Pad mixing	19.75 cu. yds.	82	99	33	215
Paving	Driveway, Parking, Aisles, etc.	1,033	1,240	413	2,686
Greenhouses	Structure, Heating & Cooling equipment	4,196	5,036	1,679	10,910
Plastic	Double Polyethylene	2,016	242	81	2,338
Benches (e)	Redwood lathe top; 13,056 sq. ft.	1,404	1,685	562	3,651
Plumbing	Wells, tanks, pumps	151	181	60	392
	Water mains	530	636	212	1,379
	Time Clocks	78	47	16	140
	Leader Tubes	536	161	54	750
Wiring	Wiring, receptacles, switches, etc.	559	671	224	1,453
Subtotal, buildings					31,855
Machinery and Equipment:
Office		186	112	37	335
Lunchroom		109	65	22	196
Fertilizer equipment		365	153	51	569
Spray Equipment		114	48	16	178
Miscellaneous spray equip.		71	30	10	111
Shop equip.		370	155	52	577
Electrical generator	20 KW, 1 phase	47	57	19	123
Emergency Heaters		72	30	10	112
Fuel Tank	12,000 gal.	289	347	116	752
Shade Cloth		440	132	44	616
Blackcloth System	20,000 sq. ft., automated	6,111	2,567	856	9,534
Internal transportation	Metal carts	158	95	32	285
Tractor	30 HP with buckets	1,315	789	263	2,367
Truck	14 ft. for pickup/delivery	1,463	615	205	2,283
Subtotal, Machinery & Equipment		23,997	17,951	5,984	18,037
Total: land, buildings, machinery, & equipment					50,172
General Overhead:
Operator Salary					25,000
Supervisor Salary					17,000
Utilities	Electricity				3,466
	Fuel (L.P. gas)				5,220
	Telephone				2,400
General Repairs & Maintenance					3,600
License, dues, etc.					300
Advertising					840
Travel & Entertainment					600
Office Expenses					360
Professional Fees					570
Miscellaneous					570
Insurance: General Health, Workman Compensation, Unemployment					3,600
Bad Debts					960
Interest on Average (one-half) overhead					5,287
Subtotal, Overhead					69,773
Total annual fixed costs					119,945