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Equipment Budget Justification

Due March 7th

The purpose of this assignment is to familiarize you with the process of writing an equipment
justification as part of a capital budget. You are the Foodservice Manager and your facility is in
need of a new fryer. Your facilitys fryer is 12 years old and needs to be replaced. The primary
use of the fryer is for French fries and sweet potato fries.
Your task is to
(1) investigate your options and
(2) submit a brief written justification to the Food & Nutrition Services Director (your boss),
who will approve the purchase.
The departments total capital budget for all new equipment is $20,000 for 2017 and your boss
has already received 5 proposals from other managers within the department. Typically, major
capital equipment has an acquisition cost of $5,000.00 or more.

You will be comparing 3 gas fryers and 3 electric fryers.


You will
(1) compare the models available,
(2) determine which piece of equipment you want to purchase, and
(3) write a justification showing why you need the fryer and
(4) why you chose a particular brand and
(5) model and
(6) its energy source.

Your assignment is as follows:


1. Read all instructions before beginning the assignment!
2. You will be calculating the life-cycle cost of fryers using the online Food Service Technology
Center (www.fishnick.com) Life-Cycle Cost Calculator.
3. Read background material regarding fryers:
http://www.fishnick.com/equipment/techassessment/2_fryers.pdf
http://www.fishnick.com/equipment/appliancetypes/fryers/tipsheet_fryers.pdf
4. You will compare 3 gas fryers and 3 electric fryers:
You are to select one gas (Frymaster HD50G) and one electric (Hobart HF50) fryer.
One gas base efficiency fryer and one gas Energy Star fryer are provided for you.
One electric base efficiency fryer and one electric Energy Star fryer are provided for you.
5. Choose one gas and one electric standard fryer from the list at:
http://www.fishnick.com/publications/appliancereports/fryers/
6. The two fryers that you select should be standard 14 open-top; NOT self-contained or
ventless.
7. Review the Test Report for each of the fryers that you have chosen to determine the
following:
Fryer size (inches) = should be 14
Preheat Energy (kWh or Btu) = energy required to heat up oil
Idle Energy Rate (kW or Btu/h) = energy required to keep oil hot when not cooking
Heavy-load Energy Efficiency (%) = efficiency when cooking
Production Capacity (lbs/hr) = how many potatoes cooked per hour

Hobart (Electric) Frymaster (Gas)


Fryer size 14 inches 14 inches
Preheat energy 1.76 kWh 11117 Btu
Idle Energy Rate 0.63 kW 8386 Btu/hr
Heavy-load Energy Eff. 85% 52%
Production Capacity 72 lbs/hr 72 lbs/hr

The Cost Calculator provides everything else, except for Additional Costs.
The annual consumable costs and maintenance costs for each fryer are as follows:
Gas Electric
Consumable Costs NA NA
(oil, filtration, etc.)
Maintenance Costs (all) $120.00 $125.00

Note that the initial cost of each fryer is as follows:


Gas Electric
Your Fryers (the ones you $6917.00 $6750.00
selected on Fishnick)
Base Efficiency Fryer $6679.00 $5225.00
Energy Star Fryer $8967.00 $7842.00

8. Use the Life-Cycle and Energy Cost Calculators at:


http://www.fishnick.com/saveenergy/tools/calculators/
o Select the electric fryer first.
o If you input your fryers manufacturer and model number at the top, the calculator
will self-fill-in the blanks (EASIEST ROUTE)
o If your selected models are not available, then input the Fryer Size, Preheat Energy,
Idle Energy Rate, Heavy-load Energy Efficiency, and Production Capacity for your
fryer.
o Use the default numbers for Fryer Usage and Utility Cost and Lifespan sections.
o Click Calculate!
o Next input the maintenance cost and initial cost for each fryer (see chart above). We
are not inputting the consumable costs.
o Finally, input the name and model number of your fryer under Optional if you did
not use the self-fill-in function.
o Select Print Results at the bottom and save as a pdf.
o Repeat the process for your gas fryer using the link above.

9. You should have one Cost Calculator comparison sheet for the 3 gas fryers and one for the 3
electric fryers.

10. You will need to see whether or not the fryer you have selected can adequately produce
the quantity of potatoes your foodservice requires during peak production periods. For this
one fryer, the facility will typically need to prepare 200 servings of 4 ounces of French fries
per hour (equivalent to 50 lb/hr) during lunch. Is the fryer youve selected able to handle this
load?
- Hobart HF50 (Electric): 72 lbs/hr
- Frymaster HD50G (Gas): 72 lb/hr
- Both fryers meet the demands of the high peak hours.
11. Finally, youd like to compare the cost of preparing French fries from fresh potatoes or
purchasing frozen French fries. This is a Make or Buy decision (4 pts).
o Use the calculator at LambWeston using the following data:
https://www.lambweston.com/resouces/fresh-vs-frozen
o 50 lb box raw potatoes = $19.55 ($0.391/lb)
o 30 lb frozen French fries = $18.98 ($0.633/lb)
o 35 lb canola oil = $63.95 ($1.827/lb)
o Your employees are paid $15.00/hour
o Base the calculations on 200 portions and only one store.
o Save the calculation sheet as a pdf and attach to your assignment.
12. Write a justification/proposal regarding the fryer that you have evaluated and make a
recommendation for the one you would like to purchase. Since your director/boss is making
the final decision, you need to justify the recommendation that you make. You need to
explain and interpret the results of the comparison in your summary. You also need to state
why you selected gas vs. electric.

You should not rely on the reader to interpret the tables (attachments), you should explain
and interpret the results for the reader. This allows you to control the narrative of the report
and explain your reasoning.
**** The final recommendation should summarize your decision and include the name and
model number, the initial cost, and lifetime cost of the recommended fryer,
(1) why you chose gas or electric, and
(2) why you are proposing the purchase of this particular fryer.

13. Complete the worksheet on the following pages and submit online on Canvas. You should
turn in one pdf containing the worksheet, 2 Cost Calculator results sheets (one gas, one
electric), and the Make or Buy calculator results.
A few comments:
1. Cooking-energy efficiency is a measure of how much of the energy that an appliance
consumes is actually delivered to the food product during the cooking process. The higher
the number, the higher the efficiency, meaning that the energy produced to heat the
appliance (oil) goes into the food and not the surrounding area. Cooking-energy efficiency
is therefore defined as:
Cooking energy efficiency = energy to food / energy to fryer

2. Natural gas vs. electricity price comparison (remember from FSM 120?)
1 Therm = 29.4kWh
Gas cost per therm = $0.808
Electricity cost per kwh = $0.1694
1 Natural gas kWh equivalent is $0.0275, which is less than 1kWh of electricity at
$0.1694

3. Natural gas prices are at an all time low because of excess production in part from hydraulic
fracturing. This is in comparison to heating oil or gasoline prices, which are currently low, but
are expected to increase in the future.

4. Electricity is not necessarily more environmentally friendly than natural gas. It depends on the
fuel source used to produce the electricity (coal, natural gas, nuclear, etc.). The efficiency of
the natural gas fryer may be lower than that of an electric fryer, but the production of
electricity may be less efficient at the power plant. In addition, the carbon emissions and
pollution from the fuel source (i.e. coal) may be greater than that of a natural gas fryer.

5. In CA electricity is generated primarily from the following. Just something to think about!
(2014 data) http://www.energy.ca.gov/pcl/labels/
Natural gas (45%)
Renewables (20%)
o Biomass/biowaste (3%)
o Geothermal (4%)
o Hydro (1%)
o Solar (4%)
o Wind (8%)
Nuclear (9%)
Large hydro (6%)
Coal (6%)
Unspecified (14%)

6. The words cheapest or cheaper should be replaced with the words inexpensive less
expensive, less costly, or more cost effective. Cheap implies low cost because of
shoddy or poor quality materials or poor manufacturing. Inexpensive implies low cost
despite medium to high quality materials and manufacturing.
Last Name: Almanza First Name: Karina

1. List the 2 fryers you have selected to compare (1 pt):


Gas Fryer
Make & Frymaster HD*50G (Gas)
Model #

Electric Fryer
Make & Hobart HF50 (Electric)
Model #

2. Discuss the initial purchase costs of each type of fryer (all 6) vs. lifetime costs (9 pts):
Actual $ amount of equipment initial purchase comparison (2):

Frymaster HD*50G/ Base Efficiency Fryer Electric Efficiency


Hobart Fryer
Gas $6,917 $6,679 $8,967
Electric $6,750 $5,225 $7,842

The initial costs of all 6 fryers were all within a similar range of $6,750 to $8,967. When comparing
both categories, the Electric Efficiency gas fryer acted as the most expensive fryer of all 6 fryers,
while the Base Efficiency electric fryer acted as the most inexpensive fryer. The average for the
gas fryer was about $7,521 each. The average for the electric fryer was about $6,605.70 each.
When comparing the amount that will be spent initially, the electric fryer is more cost effective
than the gas fryer. The most cost effective equipment in terms of initial purchase would be the
electric-based Base Efficiency fryer.

Energy cost / gas vs. electric comparison (2):

Frymaster/ Hobart Base Efficiency Fryer Electric Efficiency


Fryer
Gas $9,672 $16,068 $8,472
Electric $28,620 $36,756 $30,696

When comparing the energy cost of the three gas fryers against the three electric fryers, there is
a substantial price difference where the gas fryers are all significantly less expensive than the
electric fryers. The average for each gas fryer was about $11,404 for each. The average for each
electric fryer was about $32,024 for each. The amount spent on payments of energy cost for gas
fryers was one-third of the price payed for each electric fryer. This comparison is important to
consider for the long-term and lifetime worth of each type of fryer and how much money is
willing to support the fryer and French fry production. All-in-all, the most beneficial purchase in
terms on financial payments would be the purchasing of the gas fryers rather than the electric
fryers. The most cost effective when comparing each six fryers to one another is the gas-based
electric efficiency fryer while the most expensive is the electric-based Base Electric fryer.

Maintenance cost comparison (1):

Frymaster (Gas) Base Efficiency Fryer Electric Efficiency


Fryer
Initial (per year) $120 $120 $120
Lifetime $1,440 $1,440 $1,440

Hobart (Electric) Base Efficiency Fryer Electric Efficiency


Fryer
Initial (per year) $125 $125 $125
Lifetime $1,500 $1,500 $1,500

When comparing the maintenance cost of both the electric and the gas fryers, there is a very
small difference in initial and lifetime costs. The electric fryers have a difference of $5 dollars
additional when comparing the initial payments, but when comparing the lifetime payments,
there is a difference of $60 more for each of the electric fryers. Conclusively, in terms of
maintenance cost, all of the gas fryers are slightly more inexpensive and therefore, cost effective
than the electric fryers.

Total lifetime cost comparison (2):

Frymaster/ Hobart Base Efficiency Fryer Electric Efficiency


Fryer
Gas $18,029 $24,187 $18,879
Electric $36,870 $43,481 $40,038

When comparing the lifetime costs of the electric versus gas fryer, the most cost effective for the
value of the fryer is evidently seen in the Frymaster. The lifetime cost of the Frymaster was at least
half the price, if not less than half, of the Hobart Electric fryer as seen in the table above. When
comparing the electric efficiency fryers of gas and electric, there is a price difference of $21,159
additional lifetime payment for the electric fryer. When comparing the both base efficiency
fryers, there is a difference of $19,294 additional lifetime payment for the electric fryer and when
comparing the last two fryers I have chosen, there is an additional $18,841 dollars spent in
maintaining the electric Hobart fryer than the gasoline Frymaster fryer. The average of each gas
fryer was $20,365 while the average for each electric fryer was $40,130. Ultimately, the best
decision when deciding which fryers would be most cost effective would be the gas-based
fryers and more specifically, the Frymaster HD50G fryer.

Overall cost comparison (2):

Lifetime Costs Frymaster/ Hobart Base Efficiency Fryer Electric Efficiency


Fryer
Gas $18,029 $24,187 $18,879
Electric $36,870 $43,481 $40,038

As seen in the lifetime costs of the gas and electrical fryer comparison, there is a consistent
theme of saving money when using a gas-based fryer than an electrical fryer, which more than
the electric fryers which are roughly double the price when making overall payments and
lifetime payments. Despite there being a slight increase in initial payments for the gas-based
fryers, when thinking of the long-term value, more money is saved by the gas-based fryers than if
one were to purchase the electric fryers.
Ultimately, for the desired production of 50 pounds of fries an hour at high peak points for the
restaurant, both electric and gasoline fryers meet the demands but the money would be better
spent investing in the gasoline fryers (Frymaster) than on any of the electric-based fryers.
The best choice in deciding which fryer to purchase would be the Frymaster HD50G because it is
the most cost efficient and meets the demands of the restaurant.

3. Discuss each fryers performance in terms of efficiency and production capacity (2 pts):
Efficiency (%) comparison (1):
Frymaster / Hobart Base Efficiency Fryer Electric Efficiency
Fryer
Gas 52% 35% 57%
Electric 85% 75% 85%

In terms of efficiency, the electric fryers all demonstrate a substantial difference in better
efficiency. When comparing the Electric Efficiency fryers the electric fryer is 28% more efficient
than the gas fryer. When comparing the Base Efficiency fryers, the electric is 35% more
efficiency. When comparing the final two fryers I had chosen, the Hobart electric fryer was 33%
more efficient than the Frymaster gas-based fryer. Conclusively, the most efficient fryer is the
electric-based Base Efficiency fryer while the least efficient is the gas-based Base Efficiency fryer.

Production Capacity (lb) comparison (1):

Frymaster HD*50G/ Base Efficiency Fryer Electric Efficiency


Hobart Fryer
Gas 72 lb/hr 60 lb/hr 67 lb/hr
Electric 72 lb/hr 65 lb/hr 71 lb/hr

When comparing the production capacity of both types of fryers, there is a slight increase in the
base and electric efficiency fryers while the fryers I had chosen (Frymaster versus Hobart) both
delivered the same production capacity of 72 pounds. When comparing the Electric Efficiency
fryers, the electric fryer yielded higher capacity of 4 additional pounds. When comparing the
base efficiency fryers, the electric fryer yields an additional 5 pound capacity when compared
to the gas-based fryer. All-in-all, the production capacity of both types of fryers are very similar
and most importantly, all meet the demand of 50 pounds needed for the high peak hours of the
restaurant. Based on consideration of other factors, the best choice for production capacity
would be the Frymaster H50G.

4. Compare all 6 fryers overall and state your top choice (1 pt).
Overall comparison:

When comparing all 6 fryers, the initial payments for the gas fryers are all slightly more expensive
but when looking at the costs of long-term, lifetime and total costs, the electric fryers
substantially outweigh the payments necessary when compared to the gas fryers. The
production capacity of both types of fryers meet the demands of the restaurant despite the
efficiency of the gas-based fryers being distinguishably lower than the electric-based fryers.
Ultimately, I select the Frymaster as my top choice because (1) the production capacity is to
similar to the production of the electric and other gas fryers being compared, (2) the long-term
and lifetime costs of the Frymaster fryer are significantly more inexpensive, (3) despite the
efficiency being lower than the electric fryers that are being compared, the electric fryer might
have a less efficient production at the power plant itself, and (4) in terms of a more ecofriendly
and sustainable option, the gas fryer might be less of a pollutant in comparison to the fuel
source of the electric fryer, which is more than likely to be coal.

5. Complete the chart below. Discuss the production capacity of your selected fryer. Is it
adequate for your needs? Explain in the box below. (1 pt)
Your Fryers Load Size Your fryers cook time to cook Your Fryers Production
(lb potatoes) one load of potatoes (min.) Capacity (lb/hour)
3.0 lb 2.45 min 70.6 1.4 lb/hr
The production capacity seen in the Frymaster gas fryer is 72 pounds per hour which meets the
necessary demands of 50 pounds per hour during the peak hours of French fry distribution. The
demand of 50 pounds an hour is seen through the production capacity of 70.6 pounds an hour
with a standard deviation of 1.4 pounds per hour.

6. Make or Buy decision (4 pts).


Fresh $ 1.0075 Frozen $ 0.5391
Cost per serving: Cost per serving:
Will you make or buy your French fries?

From the nutritional stand point and from the perspective of a Registered Dietitian, the money
that is allocated in the decision of purchasing the gas Frymaster fryer, can be distributed to
making the food created and distributed amongst the customers, the best quality possible.
Despite the fresh French fries being double the price, it would be preferable from the nutritional
stand point that the fries are prepared fresh and that the quality remain consistent and desirable
to keep the customers happy.

From the Food Service Manager point of view, it would be desirable to make the most profit,
while spending the least amount of money. This mentality in exchange would prefer to purchase
frozen fries rather than fresh, which is significantly more inexpensive than making fresh French
fries.

The preparation time of the purchased French fries would be half the time when compared to
making the French fries (2.9 hours vs. 1.1 hours) which additionally would increase the labor
executed by the staff preparing the French fries which will consequently increase the amount of
money dedicated to playing for the staff. While needing to the staff to execute more hours to
make French fries, the percentage of French fries produced will hold a lower yield of 21.6% less
than if the company is to purchase the French fries. When looking at the expense that is spent
on oil, more money will be saved and allocated when purchasing the made French fries. For the
consistency of this budget, I would choose to buy the French fries to further save money and
make a better profit.

7. Provide a justification/proposal for your boss to include at least the following (6 pts):
a. Reason you need a new fryer
b. Which fryer you propose to purchase
c. Include the initial cost and lifetime cost ($)
d. Your reasons for recommending it

Dear Managerial Team--- Christine, Ashley and R.D., Joan Frank,

It has come to my attention that the current fryer used to produce French fries and sweet potato
fries has been with our facility for 12 years now. With concerns of efficiency, quality, and
ultimately saving money while having a making the most profit, I have come up with a proposal
to invest in a new fryer.

After doing research on electric and gas fryers that are available in the market today, my
proposal if focused on Frymasters HD50G gas fryer. This Frymaster gas fryer has an initial
purchase cost of $6,917 and a lifetime cost of $18,092.

I highly recommend investing in this Frymaster because for a great number of reasons that range
from production capacity to being a more economical form of French fry production.

When looking at the production capacity of the Frymaster fryer, this fryer not only meets, but also
exceeds the demands of our peak hour of French fry production (which is a production of 50
pounds per hour) by allowing 72 pounds of fries to be produced each hour.

When thinking about the long-term and lifetime costs, the Frymaster fryer is significantly more
inexpensive allowing you to save at least half to money that would be spent on an electric fryer.
(Frymaster HD50G, Lifetime Cost: $18,092 versus Hobat Electric Fryer, Lifetime Cost: $36,870)

The maintenance of the Frymaster gas fryer is also significantly more inexpensive and cost
effective than majority of electric and other gas fryers.
(Frymaster HD50G, Initial Maintenance: $120; Lifetime Maintenance: $1,440)

Although the Frymaster is superior to other fryers when comparing initial, lifetime costs and
production capacity, the efficiency of the Frymaster does display a lower quality than most
electric fryers that are available in the market today (Frymaster HD50G, % Efficiency: 52%).
Despite what appears to be a flaw in this gas fryer, after doing research I have learned that
most comparable electric fryers might yield a high efficiency at their facility but might also have
a less efficient production at the power plant itself. Additionally, in terms of a more ecofriendly
and sustainable option, the gas fryer might be less of a pollutant in comparison to the fuel
source of the electric fryer, which is more than likely to be coal.

I have included the following internet link further verify this research:
- www.fishnick.com/equipment/techassessment/2_fryers.pdf

Conclusively, I am confident that the Frymaster HD50G would be a great addition to our facility,
would distinguish our production capacity against our competitors (considering the limited
space of 14 inches we have), and would compliment our budget mission.

I look forward to the possibility of advancing this proposal!

Please let me know if there are any questions or concerns,

Karina Almanza
Result s 3 /1/17, 10:21 PM

Electric Fryer Life-Cycle Cost Calculation


Courtesy of Pacific Gas and Electric Company
Food Service Technology Center
fishnick.com

Base Energy
Hobart HF50 Efficiency Efficient
Fryer Fryer
Performance:
Fryer Size: (inches) 14 14 14
Preheat Energy: (kWh) 1.76 2.4 1.9
Idle Energy Rate: (kW) 0.63 1.2 0.86
Heavy-Load Energy Efficiency: (%) 85 75.0 85.0
Production Capacity: (lbs/h) 72 65.0 71.0
Usage:
Operating Hours per Day: (h/day) 14.0 14.0 14.0
Operating Days per Year: (d/year) 365 365 365
Number of Preheats per Day: (#/day) 1 1 1
Pounds of Food Cooked: (lbs/day) 150.0 150.0 150.0
Utility Cost and Lifespan:
Electric Cost per kWh: ($/kWh) $0.1694 $0.1694 $0.1694
Electric Demand Charge per kW: ($/kW) $0.00 $0.00 $0.00
Lifespan of Fryer: (years) 12.0 12.0 12.0
Discount Rate: (%/year) 0.00 0.00 0.00
Other:
Consumable Costs per Year: $0 $0 $0
Maintenance Costs per Year: $125.00 $125.00 $125.00
Initial Cost of Fryer: $6750.00 $5225.00 $7842.00
Results:
Annual Energy Consumption: (kWh) 14082 18079 15103
Average Energy Consumption Rate: (kW) 2.8 3.5 3.0
Annual Energy Cost: $2385 $3063 $2558

Lifetime Energy Cost: $28620 $36756 $30696


Lifetime Consumable Cost: $0 $0 $0
Lifetime Maintenance Cost: $1500 $1500 $1500
Initial Cost of Fryer: $6750.00 $5225.00 $7842.00
Total Lifetime Cost: $36870 $43481 $40038

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Result s 3 /3 /17, 3 :55 PM

Gas Fryer Life-Cycle Cost Calculation


Courtesy of Pacific Gas and Electric Company
Food Service Technology Center
fishnick.com

Base Energy
Frymaster
Efficiency Efficient
HD*50G
Fryer Fryer
Performance:
Fryer Size: (inches) 14 14 14
Preheat Energy: (Btu) 11117 18500 16000
Idle Energy Rate: (Btu/h) 8386 17000 6371
Heavy-Load Energy Efficiency: (%) 52 35.0 57.0
Production Capacity: (lbs/h) 72 60.0 67.0
Usage:
Operating Hours per Day: (h/day) 14.0 14.0 14.0
Operating Days per Year: (d/year) 365 365 365
Number of Preheats per Day: (#/day) 1 1 1
Pounds of Food Cooked: (lbs/day) 150.0 150.0 150.0
Utility Cost and Lifespan:
Gas Cost per Therm: ($/therm) $0.808 $0.808 $0.808
Lifespan of Fryer: (years) 12.0 12.0 12.0
Discount Rate: (%/year) 0.00 0.00 0.00
Other:
Consumable Costs per Year: $0 $0 $0
Maintenance Costs per Year: $120.00 $120.00 $120.00
Initial Cost of Fryer: $6917.00 $6679.00 $8967.00
Results:
Annual Energy Consumption: (Therms) 998 1657 874
Average Energy Consumption Rate: (Btu/h) 19527 32431 17096
Annual Energy Cost: $806 $1339 $706

Lifetime Energy Cost: $9672 $16068 $8472


Lifetime Consumable Cost: $0 $0 $0
Lifetime Maintenance Cost: $1440 $1440 $1440
Initial Cost of Fryer: $6917.00 $6679.00 $8967.00
Total Lifetime Cost: $18029 $24187 $18879

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Fresh vs. Frozen | Fr ench Fr ies | Lamb West on 3 /4 /17, 10 :28 PM

Home / Resources / Fresh vs. Frozen

FRESH VS. FROZEN

Fresh vs. Frozen French Fries


If you've been making french fries from scratch in your operation, the following
comparison worksheets may change your mind about the profitability of making french
fries from fresh potatoes.

These worksheets focus on the economic issues. At Lamb Weston, we believe that
frozen french fries can hold their own in any cutting when it comes to flavor, color and
texture. Additionally, Lamb Weston frozen french fries also deliver these advantages:

Lower lab or costs. Making fresh french fries is a labor-intensive task that also takes
up valuable kitchen space.

Less oil usag e. Fresh potatoes must be fried longer because they contain more
moisture. This uses more oil and processes water from the potato into the oil, which
significantly shortens the lifespan of the oil.

Faster p rep aration. Fresh potatoes need 5 minutes to cook while frozen need only
3 minutes. This offers another hidden advantage in faster serving times.

Bottom-line saving s. As the worksheets show, the net savings are very meaningful
for operations of any size. They are especially valuable for high-volume, multi-unit
operations.

Download PDF

FRESH VS. FROZEN CALCULATOR


Price per pound of raw potatoes 0.391 $/LB

Price per pound of Lamb Weston French Fries 0.633 $/LB

Wage/hour (of employee preparing the food) 15.00

Price of oil per pound 1.827 $/LB

Servings per day per store 200

Number of stores 1

Calculate

PROFIT RESULTS

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Fresh vs. Frozen | Fr ench Fr ies | Lamb West on 3 /4 /17, 10 :3 0 PM

Fresh Cut French Fries Lamb Weston French Fries


Pro
Prodd uct Prod uct

Price per pound 0.3910 Price per pound 0.6330

Raw product weight lbs. 100 Raw product weight lbs. 100

Raw product cost 39.1000 Raw product cost 63.30

Lab or Lab or
or

Labor wage/hr 15.00 Labor wage/hr 15.00

Hours/lb of raw product 0.0758 Hours/lb of raw product 0.0361

Labor cost/lb of raw product 1.1370 Labor cost/lb of raw product 0.5415

Pounds of raw product 100 Pounds of raw product 100

Labor cost 113.70 Labor cost 54.15

Oil Oil

Price of oil/lb 1.8270 Price of oil/lb 1.8270

Lbs of oil/lb of raw product 0.0654 Lbs of oil/lb of raw product 0.0436

Oil cost/lb of raw product 0.1195 Oil cost/lb of raw product 0.0797

Pounds of raw product 100 Pounds of raw product 100

Oil cost 11.95 Oil cost 7.97

Totals Totals

Total cost 164.75 Total cost 125.42

Pounds of raw product 100 Pounds of raw product 100

Total cost/lb of raw product 1.6475 Total cost/lb of raw product 1.2542

Servings/lb of raw product 1.6352 Servings/lb of raw product 2.3264

Cost per serving 1.0075 Cost per serving 0.5391

Savings with Lamb Weston Product


Ad vantag e p er serving 0.4684

Serving s p er d ay p er store
sto re 200

Saving s p er d ay p er store 93.68

Days p er year 360

Saving s p er year p er store 34,193.20

Numb er ooff sto


stores
res 1

TOTAL SAVINGS PER YEAR 34,193.20

GENERAL ASSUMPTIONS

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Fresh vs. Frozen | Fr ench Fr ies | Lamb West on 3 /4 /17, 10 :3 1 PM

Fresh Frozen
Raw product: 80 Count Russet Burbank, 1.0800 specific gravity. Precut.
97.9 yield after cutting. 72.7% yield after frying.
51.1% yield after frying. Oil usage: 1.33lb of oil per 30.5lbs of raw product.
Oil usage: 2.5lb of oil per 38.25lbs of raw product. Labor time: 1.1 hrs. per 30.5lbs of frozen french fries (single fry
Labor time: 2.9 hrs. per 38.25lbs of raw product (wash, trim, cut, single and serve.)
fry and serve.) Fry time used in evaluation: 3 minutes.
Fry time used in evaluation: 5 minutes.

ampliFRY Sweet Things Careers


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RUBRIC
Equipment Capital Budget Justification

Grade Item Points


1. Name the brand & model of the 2 fryers selected on Fishnick 1

2. Initial purchase cost vs. lifetime cost: 9


Actual $ amount of equipment purchase (2 pt)
Energy cost / gas vs. electric (2 pt)
Maintenance cost (1 pt)
Total lifetime cost (2 pt)
Overall cost comparison (2 pt)
3. Performance 2
Efficiency (%) (1 pts)
Production capacity (lbs) (1 pts)
4. Overall comparison & selection 1

5. Production capacity (lbs) of selected fryer adequate? (1 pt) 1

6. Make or Buy decision 4

7. Summary Recommendation: 6
Reason for needing a new fryer (1 pt)
State which selected (1 pt)
Must list cost and lifetime cost in $ amounts (1 pt)
Reason for recommending it (3 pt)
o Gas vs. electric
o Why is it the best choice?
o Was it justified?
Organization and format
Proper format (-2)
Grammar, Spelling, etc. (-2 pt)
Printed comparisons attached (2 pts each) 6
3 Gas fryers
3 Electric fryers
Make or Buy comparison
TOTAL: 30