5.65 Smithville is a new manufacturer located at 140 Highland East in Kitchener. They would like to have a 6 yard container on their property for waste, and they will need the container picked up once per week on Wednesday Waterloo Route W358 is a Commercial truck route, in the month of September ran 1,887 yards with 25.5 hours excluding pee and post trip, disposal and break times. They serviced 271 stops and 331 containers. There were 12 disposal loads that accounted for 10.4 hours of truck time. Pre post accounted for 39 hours. This is the route that the new customer will be added Based on the above information: On route minutes per stop On route minutes per container: 4.62 Pre Post minutes per stop 0.86 Pre Post Minutes per container:0.71 Disposal minutes per top: 2.30 Disposal minutes per container 1.89 Disposal minutes per yard: 0.33 Average Glyard for the route: 45 KG/yard Average Glyard for manufacturing customers: 65KG/yard Assume that the load of waste is delivered to Waterloo Transfer Station and final disposal will be Twin Creeks Landfill. A transport trailer will haul the waste to Twin Creeks in 38 Tonne loads The operating costs of the Commercial truck is $84.26 /hour The disposal cost at the Waterloo Transfer station is $70 Tonne The operating costat Waterloo Transfer is $25 hour The trucking cost from Waterloo Transfer to Twin Creeks is S22/Tonne Twin Creeks operating cost are $29/Tonne The cost of the yard container is $1000 Twin Creeks Landfill EBIT margin was 46% in 2018 Waterloo hauling EBIT margin was 39% in 2018 The customer has received quotes from other competitors and is looking for a quote Questions: Using the information above, prepare a presentation to answer the following questions How much additional time will be added to the route if we service this customer? What additional costs should we account for if we add this customer to the route! What range of EBIT Margin do you suggest we try to price this business at? What price do you recommend we charge this customer month, explain how you arrived at this price. I understand there is limited information provided in this example, what additional questions would you have for the sales rep to help you validate the price you have come up What additional financial information would you need in order to validate the price you have come up with? 5.65 Smithville is a new manufacturer located at 140 Highland East in Kitchener. They would like to have a 6 yard container on their property for waste, and they will need the container picked up once per week on Wednesday Waterloo Route W358 is a Commercial truck route, in the month of September ran 1,887 yards with 25.5 hours excluding pee and post trip, disposal and break times. They serviced 271 stops and 331 containers. There were 12 disposal loads that accounted for 10.4 hours of truck time. Pre post accounted for 39 hours. This is the route that the new customer will be added Based on the above information: On route minutes per stop On route minutes per container: 4.62 Pre Post minutes per stop 0.86 Pre Post Minutes per container:0.71 Disposal minutes per top: 2.30 Disposal minutes per container 1.89 Disposal minutes per yard: 0.33 Average Glyard for the route: 45 KG/yard Average Glyard for manufacturing customers: 65KG/yard Assume that the load of waste is delivered to Waterloo Transfer Station and final disposal will be Twin Creeks Landfill. A transport trailer will haul the waste to Twin Creeks in 38 Tonne loads The operating costs of the Commercial truck is $84.26 /hour The disposal cost at the Waterloo Transfer station is $70 Tonne The operating costat Waterloo Transfer is $25 hour The trucking cost from Waterloo Transfer to Twin Creeks is S22/Tonne Twin Creeks operating cost are $29/Tonne The cost of the yard container is $1000 Twin Creeks Landfill EBIT margin was 46% in 2018 Waterloo hauling EBIT margin was 39% in 2018 The customer has received quotes from other competitors and is looking for a quote Questions: Using the information above, prepare a presentation to answer the following questions How much additional time will be added to the route if we service this customer? What additional costs should we account for if we add this customer to the route! What range of EBIT Margin do you suggest we try to price this business at? What price do you recommend we charge this customer month, explain how you arrived at this price. I understand there is limited information provided in this example, what additional questions would you have for the sales rep to help you validate the price you have come up What additional financial information would you need in order to validate the price you have come up with
