Breakeven Excellent Beer & Beverage Distributors Company

Breakeven Excellent Beer & Beverage Distributors Company email FROM: Ross Terna, Manager of Purchasing Danny Wilco Re: Quotes on Dock & unloading improvements I am summarizing the information that we received from Acme Material Handling and Jones Construction regarding their quotes/bids on the work we requested. ~RT ACME MATERIAL HANDLING QUOTE: • 1 Acme Speed Roller Conveyor system • Operating Specs: conveyor speed: 3 ft / second, Max spot load: 250 lb., length 45 ft., width, 3.3 ft.

• Price: $225,000 • Delivery: within 3 weeks upon receipt of order, 20% due on order, 80% due 45 days upon delivery JONES CONSTRUCTION QUOTE: • Demolition and rebuild loading dock to include 7.5 ft expansion on length. • All labor, materials, and other expenses included in price: $175,000. • Construction starts within 10 days of receipt of order and 10% payment. Estimated construction time is 21 days, with 50% due at completion. Balance of 40% due within 30 days. NOTES: Acme Speed Roller • Estimated annual maintenance costs: $8,200. • Estimated operating costs, including electric, $1.75-hour.

• Estimated time to unload a vendor delivery: 6.1 trucks / hour, or 9.84 minutes/truck • Annualize purchase price over 10 years is $22,500. Annual expenses 30,700 Hourly Expenses 42/6.1= 6.9 hours * 1.75 = $12.1 per hour Jones Construction • Annualized purchase price over 10 years is $17,500. • No additional costs • Time to unload a vendor delivery: 4.2 trucks per hour, or 14.28 minutes/truck, Per Dock Hand • Two trucks can be unloaded simultaneously with the expanded size of the dock: effective rate is 8.4 trucks per hour. 42/4.2 = 10 * 30 = $300 per day 42/8.4 = 5 * 60 = $300.