5. debeaked ODI savings
mortality .216 .108 .108
feed 7.04 6.837 .203
labor .034 .033 .001
egg laying .099 --- .099
.411
cost of lens -.08
total savings per bird .331
6. Calculation of mortality
debeaked = 9% (pg. 5,first paragraph)
i.e. 9% of $2.40 (exhibit 5)= $0.216
ODI = 4.5% (pg.. 5, 5th paragraph)
i.e. 4.5% of $2.40(exhibit 5) = $0.108
7. debeaked ODI savings
mortality .216 .108 .108
feed 7.04 6.837 .203
labor .034 .033 .001
egg laying .099 --- .099
.411
cost of lens -.08
total savings per bird .331
8. Calculation for the feed
debeaked
it is $7.04 (exhibit 5)
ODI calculations
24.46 - 23.68 (on page 6, 2nd paragraph)
.78 / 100 = .0078 per chicken per day
.0078 * 365 = 2.847 lbs. for the whole year
benefit to the farmer $158 per ton, (pg.. 6, 2nd para.)
will be $0.158 per kg.
1 lbs.. = .453 kg.
Benefit will be 1.28969 kg. Per hen
1.28969 * .158 = .203
therefore 7.04 - .203 = $6.837
9. debeaked ODI savings
mortality .216 .108 .108
feed 7.04 6.837 .203
labor .034 .033 .001
egg laying .099 --- .099
.411
cost of lens -.08
total savings per bird .331
11. debeaked ODI savings
mortality .216 .108 .108
feed 7.04 6.837 .203
labor .034 .033 .001
egg laying .099 --- .099
.411
cost of lens -.08
total savings per bird .331
12. Calculation for egg laying (trauma)
debeaking (pg. 5, 1st para)
loss one egg per 5 month
total loss is 2.4 eggs per year per hen
total cost per dozen = $0.50 ( exhibit 5)
total loss = 50 * 2.4 / 12 = $0.099 per hen
ODI
no loss (pg. 5, last line)
13. debeaked ODI savings
mortality .216 .108 .108
feed 7.04 6.837 .203
labor .034 .033 .001
egg laying .099 --- .099
.411
cost of lens (pg.7, first line) -.08
total savings per bird .331
17. Fixed costs
a) payment to new world (pg.2, para 5) $25,000
b) office and warehouse (pg.7, table b) 196,000
c) head quarters expense (pg.7, para 2) 184,000
(assuming 20 million pair)
d) salesmen 280,000
e) technical representatives 70,000
f) advertising and promotional (pg. 7, 2nd para) 100,000
g) trade shows (pg. 7, 2nd para) 100,000
total fixed costs $ 955,000
18. Assuming seven sales men, target California (flock size 20,000
and above) as per exhibit 3.
Flock size No. farms No. chickens
20000-49000 320 9,517,453
50000-99000 114 7,459,994
100000&above 87 22,952,283
521 39,929,730
per salesmen can cover 80 farms each year as assumed in
page 6 last paragraph
so 521/80 = 6.5 so taking 7 salesmen
so 7 * 40000 (pg.6 ,last paragraph) = 280,000
19. Fixed costs
a) payment to new world (pg.2, para 5) $25,000
b) office and warehouse (pg.7, table b) 196,000
c) head quarters expense (pg.7, para 2) 184,000
(assuming 20 million pair)
d) salesmen 280,000
e) technical representatives 70,000
f) advertising and promotional (pg. 7, 2nd para) 100,000
g) trade shows (pg. 7, 2nd para) 100,000
total fixed costs $ 955,000
20. Calculation for technical representatives
one technical representative is enough for five
salesmen (pg. 6, last para)
therefore two are required for seven salesmen
2 * 35000 (pg 6, last para) = 70000
21. Fixed costs
a) payment to new world (pg.2, para 5) $25,000
b) office and warehouse (pg.7, table b) 196,000
c) head quarters expense (pg.7, para 2) 184,000
(assuming 20 million pair)
d) salesmen 280,000
e) technical representatives 70,000
f) advertising and promotional (pg. 7, 2nd para) 100,000
g) trade shows (pg. 7, 2nd para) 100,000
total fixed costs $ 955,000
23. Range of pricing is between $.08 and $.24
if we use
price for pair of lenses $.24 $.08
variable costs .03448 .03448
(as calculated)
fixed costs .04775 .04775
profits for ODI (per pair) $.1577 $(-.00223)
25. Range of pricing is between $.08 and $.24
if we use
price for pair of lenses $.24 $.08
variable costs .03448 .03448
(as calculated)
fixed costs .04775 .04775
profits for ODI (per pair) $.1577 $(-.00223)
