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Annual Rental Program BudgetScenario 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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New/replacement bicycles-quantity6016060

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Bicycle-lifespan (years)4411

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New/replacement helmets-quantity120120

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New/replacement locks-quantity605200

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Bicycle-cost (shipped)$330$330-$160-$160

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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$9-$9-$9

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Bicycle-replacement parts$20$20-$50-$50

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Helmet-cost$11$11-$11-$11

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Lock-cost$20$20-$20-$20

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Budget

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Bicycles$19,800$330-$9,600-$9,600

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Helmets$132$0-$132$0

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Locks$1,200$100-$400$0

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Replacement Parts$1,200$1,200-$3,000-$3,000

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Labor$7,380$6,849-$7,380-$7,380

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Subtotal$29,712$8,479-$20,512-$19,980

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Cumulative Totals

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Year 1$29,712-$20,512

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Year 2$38,191-$40,492

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Year 3$46,670-$60,472

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Year 4$55,149-$80,452

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Price per bike after four years:$919-$1,341