Breakeven Excellent Beer & Beverage Distributors Company Case Study

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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.

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• 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.....

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"Breakeven Excellent Beer & Beverage Distributors Company", 25 July 2014, Accessed.4 June. 2026,
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