Poinsettia 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.

(c) Insurance and taxes are an estimated cost of 2% of initial cost of the buildings or equipment.

(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.

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