Current Body Shop
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
Revenue (annual)
$200,000
Variable Costs
40%
ATOPCF
$30,000
Lease pymts (monthly)
$400
Proposed Body Shop
Life (years)
10
Land
$100,000
Building
$600,000
Equipment
$50,000
Truck booth/Compressor
$150,000
NWC
$50,000
Depreciation: S/L to $0 salvage
$80,000
Depreciation Exp (annual)
Capacity Saleable hours
26,000
1981 % Capacity
60%
1982 % Capacity
70%
1983% Capacity
80%
1984 % Capacity
90%
1985-1990 % Capacity
100%
Labor Revenue (hourly)
$32.00
Parts & Supplies (hourly)
$24.00
Labor VC (hourly)
$14.48
Parts & Supplies VC (hourly)
$17.52
Fixed Costs (annual)
Supervision/Clerical
$70,000
Repairs/Maintenance
$20,000
Utilities/Taxes/Insurance
$50,000
Advertising
$20,000
MV-Land (t=1990)
$100,000
MV-Building (t=1990)
$300,000
Tax Rate
46%
WACC
20%