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Annual Rental Program BudgetScenario 1 provides the current financial plan utilizing more expensive, more durable bicycles produced domestically.Scenario 2 is provided for comparison purposes, showing less expensive, less durable bicycles produced in China.

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Scenario 1 – Worksman Cycles (USA)Scenario 2 – Campus Cruisers (China)

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FactorsStartup Year – 2009Ongoing AnnualStartup Year – 2009Ongoing Annual

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Bicycle-quantity60606060

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Bicycle-lifespan4411

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Helmet-quantity120120

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Lock-quantity200200

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Basket-quantity126126

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Bicycle-cost-$329$0-$160-$160

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Bicycle-resale price$100$0$75$75

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Bicycle-powdercoat$0-$80$0$0

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Bicycle-maintainance labor (20hrs/week, 38 weeks, $9/hr)-$6,840-$6,840-$6,840-$6,840

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Bicycle-build labor (1hr/build, $9/hr)-$9$0-$9-$9

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Bicycle-replacement parts-$50-$50-$50-$50

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Helmet-Airius V-10 S/M (95614/95618)-$11-$11-$11-$11

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Lock–Kryptonite Kryptolok (39162)-$20-$20-$20-$20

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Basket-$9-$9-$9-$9

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Shipping-$50$0-$25-$25

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Fleet Budget Subtotal

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Bicycles-$15,240-$4,800-$6,225-$6,225

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Helmets-$132$0-$132$0

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Locks-$400$0-$400$0

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Baskets-$108-$54-$108-$54

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Shipping-$3,000$0-$1,500-$1,500

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Replacement Parts-$3,000-$3,000-$3,000-$3,000

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Labor-$7,380-$6,840-$7,380-$7,380

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Subtotal-$29,260-$14,694-$18,745-$18,159

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Cumulative Totals

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Year 1 Total-$29,260-$18,745

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Year 2 Total-$43,954-$36,904

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Year 3 Total-$58,648-$55,063

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Year 4 Total-$73,342-$73,222

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Price per bike after four years:-$1,222-$1,220

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Amortized price per bike after four years:-$306-$305

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Year 5 Total-$102,602-$91,967

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Year 6 Total-$117,296-$110,126

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Year 7 Total-$131,990-$128,285

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Year 8 Total-$146,684-$146,444