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Operating Expenses <br />Annual operating costs are given in Table 4. Annual <br />n <br />capacity auction market <br />operating costs for a 500 animal unit <br />amount to $100,132. On a per animal unit basis this is $5.78. <br />All costs were estimated icollaboration with The orange <br />TheOrange County <br />Livestock Associatioon n in <br />Extension Service. <br />Expected revenues <br />Table 5 gives annual expected revenues for different gross <br />since it is <br />UNIT 4 <br />EXPECTED COSTS AND RETURNS FOR A 500 ANIMAL <br />AUCTION MARKET <br />mately $6.00 per animal unit. <br />Investment Costs <br />With average weekly sales equivalent to 70 percent of peak <br />500 animal unit <br />weekly capacity, it was determined that a <br />be budgeted. Table 3 <br />facility located in Orange County would <br />life and annual costs for an administra- <br />gives investment costs, <br />structure, plumbing, electrical, water <br />tion building, support <br />treatment and roadways. <br />Total building costs are $182,605. Total Equipment costs <br />sales <br />are $61,500. In addition a bond in the value of one week's <br />This amounts to <br />must be held in an escrow type account. <br />Annual Investment costs are $15,725, for equipment <br />$98,100. <br />only, without the building and $33,986 with the building. <br />Operating Expenses <br />Annual operating costs are given in Table 4. Annual <br />n <br />capacity auction market <br />operating costs for a 500 animal unit <br />amount to $100,132. On a per animal unit basis this is $5.78. <br />All costs were estimated icollaboration with The orange <br />TheOrange County <br />Livestock Associatioon n in <br />Extension Service. <br />Expected revenues <br />Table 5 gives annual expected revenues for different gross <br />since it is <br />sale volumes. The 5iler City schedule is used <br />e f <br />representative and is approxis <br />on market revenue <br />hetaveraeeeaucti . <br />sold in the area. T, g <br />mately $6.00 per animal unit. <br />Expected profitability <br />the annual costs with the average expected revenue <br />be earned <br />.Comparing <br />for an animal unit, it can be seen that a loss will <br />included in annual cost or <br />regardless whether the building is <br />building and equal operating costs, the <br />not. Given the same size <br />to realize a weekly volume of 364 animal <br />new market would, need <br />for the building and 422 animal units if the <br />units without paying <br />is to be for out of auction receipts. <br />building paid <br />L] <br />Ll <br />. a <br />