Adding 1/2 cent per ton of ice for the required heating, the total power cost of making 80,000 tons of ice is (80,000 x .50) $ 40,000.00 ENGINE ROOM LABOR COST: 1 chief engineer per day $ 10.00 3 engineers per day $ 8.00 Total per day $ 34.00 365 days at $34.00 equals $ 12,410.00 or 12410 / 80000 = 15.62 cents per ton [2] ICE PLANT LABOR COST: 3 men pulling ice and setting it up in store-room. per day $ 6.00 3 men in store-room per day $ 6.00 1 shipping clerk per day $ 8.00 Total labor per day $ 44.00 365 days at $44.00 equals 16,060.00 For filling the winter storage house and taking the ice out of it will require 3 additional men for five months, equals 150 days x $18.00, equals $ 2,700.00 Total Ice Plant Labor Cost Equals $18,760.00 or 18670 / 80000 = 23.46 cents per ton 240 tons of ice equal 1200---400-lb. cans. As 24 cans are pulled at one time it requires 1200 / 24 = 50 pulls per day, or one pull every 29 minutes. The ice-puller has therefore ample time to set up all ice pulled in storage house as directed. Cost of Ammonia at 2 cent per ton $ 1,600.00 Cost of Oil and Waste at 2 cent per ton $ 1,600.00 Cost of Water at 3 cent per ton $ 2,400.00 Cost of Salt at 72 cent per ton $ 400.00 Plant Maintenance and Repairs $ 3,500.00 or 3500 / 80000 = 4.37 cent per ton OFFICE EXPENSES: 1 Manager and Salesman, per year $ 5,000.00 1 Bookkeeper, per year $ 2,400.00 Stationery, Telephone, etc $ 600.00 Total Cost $ 8,000.00 or 8000 / 80000 = 10 cent per ton [3] OVERHEAD CHARGES: 8 per cent interest on $350,000.00 investment $ 28,000.00 8 per cent interest on value of land ($20,000.00) $ 1,600.00 8 per cent interest on $10,000.00 working capital $ 800.00 3 per cent depreciation on $350,000.00 $ 10,500.00 Insurance (estimated) $ 1,500.00 Taxes (estimated) $ 3,500.00 Total $ 45,900.00 or 45900 / 80000 = 57.375 cent per ton Total Expense $134,570.00 or 134570 / 80000 = $1.68.215 per ton Divided as follows:-- Manufacturing cost including office expense $ 1.10.840 Overhead charges $ 0.57.375 ICE SALES ASSUMPTIONS: Month Ice Ice sold Ice stored Ice Sold Total Ice produced direct per day from storage stored in 30 per day per day daily days January 240 65 175 5250 February 240 65 175 5250