Exhibit 1 ACTUAL REVENUES AND COSTS FOR THE RESORT LAND-CLEARING JOB (in U.S. dollars) Per day Project Calendar days needed to complete the project' 7 Revenues Revenue per calendar day $375.00 Total revenues $2,625.00 Variable costs Transportation costs Round trip distance (miles) 80 Rate per mile $0.63 Transportation costs per calendar day $50.40 Total transportation costs (352.80) Shepherd and dog Rate per calendar day $190.00 Total shepherd and dog costs (1.330.00) Total variable costs per calendar day $240.40 (1,682.80) Contribution margin $134.60 $942.20 Fixed costs Setup (100.00) Fencing Linear feet 962 Rate per linear foot $0.75 Total fencing costs (721.50) Total fixed costs (821.50) Profit $120.70 ' The area cleared was one acre, or 43,560 square feet. At a daily forage rate of 250 square feet per goat, the job required 174.24 goat days. The trailer has a capacity of 25 goats, so it would take 6.97 days for the goats to finish clearing the land. By agreement, Mccoy billed for a full trailer (25 goats) for a full day each day the goats were on site. Therefore, Mccoy billed the owner for seven calendar days (175 goat days).FIXED AND VARIABLE COSTS FOR RESORT JOB (in U.S. dollars) Description Truck and trailer operation and maintenance costs per mile $0.63 (transportation costs) Round trip to resort job site (miles per day) 80 Shepherd and dog costs per day $190.00 Setup costs for resort job $100.00 Fencing costs per linear foot $0.75 Linear feet of fence needed for resort job 962 Exhibit 3 COSTS FOR LARGER TRUCK AND TRAILER (in U.S. dollars) Description Cost Heavy duty pickup truck $15,000 20' used livestock trailer 7,250 Taxes, title, etc. 2.225 Total investment $24,475 Exhibit 4 ESTIMATED FIXED AND VARIABLE COSTS FOR GOAT RENTAL OPERATION WITH A LARGER TRUCK AND TRAILER (in U.S. dollars) Description Larger truck and trailer Estimated truck and trailer operation and maintenance costs per $1.25 mile (transportation costs) Average round trip to job site (miles per day) 80 Shepherd and dog costs per day $190.00 Setup costs per job $100.00 Fencing costs per linear foot 50.75 Average linear feet of fence needed per job 962 Show transcribed dataGoats the Green Alternative Please submit both a spreadsheet and Word document anonymously The assignment is due Monday June 27th and of day. 1) Compute the number of calendar days needed to complete a one acre job using the current truck/trailer combination and the larger truck/trailer combination. Use this to calculate the maximum number of jobs McCoy could accept per year using each truck/trailer combination. 2) Using the question 1 results & exhibit #1, compute the incremental annual revenues (cash inows) and expenses (cash outlfows) given an investment in a larger truck (i,e, what is the difference in revenue and expense between the old truck and the new truck), 3) Using the results from #2 prepare a model of the initial investment and incremental cash ows for the next 5 years. Utilize NPV, [RR & the payback period. 4) What would you recommend to McCoy regarding the goat rental operation