| system | initial cost ($ + hrs) / unit | annualized cost ($ + hrs) / unit | sqft building | acre land | revenue | market cost | benefits | | ------ | ----------------------------- | -------------------------------- | ------------- | --------- | ------- | ----------- | --------------------------------------------------------------- | | bakery | $425k + 2000 hrs | $113k + 8978 hrs | 3000 | 0 | $520k | $912k | Community bread/pastries, revenue generation, skill development | #### Assumptions - Internal consumption: - Daily bread: 1000 servings (500 breakfast, 300 lunch, 200 dinner) - Sweet treats: 300 servings/day - Special diets: 15% gluten-free, 10% vegan, 10% low-sodium, 5% low-carb - External market: - Rural location within 30 mins of 250k population center - 100 retail customers/day average - 5 wholesale accounts under local jurisdiction - Focus on artisanal, high-end products - Production schedule includes night baking shift ##### Internal resource utilization per year - wheat 80 tons - eggs: 50k - honey: 2000 lbs - power: 464,280 kWh - water: 117,000 gallons #### Market Solutions $912k/year - Daily bread (1000 servings × $1.00) × 365 = $365,000 - Sweet treats (300 servings × $3.00) × 365 = $328,500 - Retail sales (100 servings × $12) × 365 = $438,000 - Wholesale products = $170,000 Total if purchased at market rates: $912,000/year #### Labor 8760 Hours/year | task | hours/year | notes | | -------------------------- | ---------- | ---------------------- | | Night baking shift | 2920 | 8hrs × 365 days | | Day baking/prep | 2920 | 8hrs × 365 days | | Retail operations | 2190 | 6hrs × 365 days | | Maintenance/cleaning | 365 | 1hr × 365 days | | Quality control/management | 165 | Includes compliance | | Local delivery | 200 | For wholesale accounts | | Internal resource | ??? | | | total labor (hours) | 8760 | | #### Operating Costs $68k/year | component | external cost ($) | notes | | --------------------- | ----------------- | ---------------------- | | External ingredients | $25k | Specialty items | | Packaging | $15k | Eco-friendly materials | | Utilities | $12k | Energy/water | | Equipment maintenance | $8k | Service/parts | | Regulatory compliance | $5k | Permits | | Marketing | $3k | Local promotion | | internal resource | $?k | | | total annual cost | $68k | | #### Initial Costs $425k + 2000 hrs -> $45k + 218 hrs/year | Component | Initial Cost ($ + hrs) | Lifespan (Years) | Amortized Cost/Year ($ + hrs) | Justification | |-----------------------------|------------------------|------------------|-------------------------------|---------------| | Production Equipment | $200k + 150 hrs | 10 | $20k + 15 hrs | Commercial ovens, mixers, etc. | | Cold Storage Systems | $100k + 1000 hrs | 10 | $10k + 100 hrs | Walk-ins, display cases, complex installation | | Retail Buildout | $75k + 500 hrs | 15 | $5k + 33 hrs | Customer space, counters | | Initial Training | $25k + 300 hrs | 5 | $5k + 60 hrs | Expert instruction | | Tools/Smallwares | $25k + 50 hrs | 5 | $5k + 10 hrs | Pans, racks, utensils | | total initial cost | $425k + 2000 hrs | - | $45k + 218 hrs | | #### System Outputs | Output Type | Daily Units | Annual Units | Internal Cost ($ + hrs) / unit | Notes | | ------------------ | ------------- | ------------ | ------------------------------ | ---------------------------------- | | Basic bread | 1000 servings | 365,000 | ($0.40 + 0.01) | Uses 0.5lb wheat/serving | | Sweet treats | 300 servings | 109,500 | ($0.75 + 0.02) | Average 1 egg, 0.1lb honey/serving | | Retail products | 100 items | 36,500 | ($1.20 + 0.03) | Higher-end artisanal goods | | Wholesale products | 50 items | 18,250 | ($1.00 + 0.02) | Bulk production efficiency | #### Revenue $520k/year | service category | revenue ($) | notes | | ------------------- | ----------- | ----------------------------------------- | | Direct retail sales | $350k | Based on 100 customers/day @ $12 average | | Wholesale accounts | $170k | 5 accounts under local jurisdiction limit | | total | $520k | Excludes internal community consumption |