East Coast Ohio Freight: Breakeven Calculations

Capital Equipment `          
10 year Amortization 25000          
Int. Cost @10.25 25625          
Capital Cost 50625          
             
Labour Cost            
4 additional Men @
800 166400          
add 40% 66560          
             
Labour Cost 232960          
             
TOTAL 283585          
             
Total Haul 1000 miles        
(Page 67 para
Front Hauls 500 miles   500 2)  
        250 13000  

Table 1: Basic Calculations

Average Case            
Revenue/mile 1.1 Page 6        
Total Revenue 550          
Gross margin 8.5%          
Margin from
Existing Business 46.75          
Additional (20% increase in Margin, 10%
Margin 10% increase in cost        
Additional
Margin 55          
Total Margin 101.75          
Breakeven 2787.07
Fronthauls 6          
Current
Fronthauls 13000 (Page 5)        
% Increase 21%          

Table 2: Average Case

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East Coast Ohio Freight: Breakeven Calculations

Revenue/mile 1.2 Page 6        

Total Revenue 600          
Gross margin 10.0%          
Margin from
Existing Business 60          
Additional (20% increase in Margin, 10%
Margin 10% increase in cost        
Additional
Margin 60          
Total Margin 120          
Breakeven 2363.20
Fronthauls 8          
Current
Fronthauls 13000 (Page 5)        
% Increase 18%          

Table 3: Best Case

Revenue/mile 1 Page 6        
Total Revenue 500          
Gross margin 7.0%          
Margin from
Existing Business 35          
Additional (20% increase in Margin, 10%
Margin 10% increase in cost        
Additional
Margin 50          
Total Margin 85          
Breakeven 3336.29
Fronthauls 4          
Current
Fronthauls 13000 (Page 5)        
% Increase 26%          

Table 4: Worst Case

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