e to set up all ice
pulled in storage house as directed.

Cost of Ammonia at 2 cent per ton $ 1,600.00

Cost of Oil and Waste at 2 cent per ton $ 1,600.00

Cost of Water at 3 cent per ton $ 2,400.00

Cost of Salt at 72 cent per ton $ 400.00

Plant Maintenance and Repairs $ 3,500.00

or 3500 / 80000 = 4.37 cent per ton

OFFICE EXPENSES:

1 Manager and Salesman, per year $ 5,000.00

1 Bookkeeper, per year $ 2,400.00

Stationery, Telephone, etc $ 600.00

Total Cost $ 8,000.00

or 8000 / 80000 = 10 cent per ton

[3]

OVERHEAD CHARGES:

8 per cent interest on
$350,000.00 investment $ 28,000.00

8 per cent interest on
value of land ($20,000.00) $ 1,600.00

8 per cent interest on
$10,000.00 working capital $ 800.00

3 per cent depreciation on
$350,000.00 $ 10,500.00

Insurance (estimated) $ 1,500.00

Taxes (estimated) $ 3,500.00

Total $ 45,900.00

or 45900 / 80000 = 57.375 cent per ton

Total Expense $134,570.00

or 134570 / 80000 = $1.68.215 per ton

Divided as follows:--

Manufacturing cost including office expense $ 1.10.840

Overhead charges $ 0.57.375

ICE SALES ASSUMPTIONS:

Month Ice Ice sold Ice stored Ice Sold Total Ice
produced direct per day from storage stored in 30
per day per day daily days

January 240 65 175 5250

February 240 65 175 5250

March 240 115 125 3750

April 240 165 75 2250

May 240 300 60

June 240 400 160

July 240 400 160

August 240 400 160

September 240 350 110

October 240 200 40 1200

November 240 140 100 3000

December None 65 65

Tons 20700
Less Tons 1950