Hammers 19500 26000
Weeks used 25 25
Hours per week 30 30
Feet per hour 20 20
Feet per year 290000000 390000000
Feet Per Set
(4 initially plus 2) 10000 10000
Sets per year 29000 39000
Pads per year 174000 234000
Pads Manufactured 3000 3000
% of Market 1.72% 1.28%
It is estimated that there are 19,500 to 26,000 hammers in use 25 weeks per year or 30 hours per week. These hammers average 20 feet per hour for 290 million to 390 million feet driven annually. If six pads per set will drive 10,000 feet then the market for coiled metal pads would be 174,000 to 234,000 pads annually
b. What is the “average” size of the market if the pads last as long as the Kendrick job?
2. Value is the total of the pile driving time savings, the change time savings, and the total cost of the asbestos pads; divided by the number of CMI pads used.
a. Based on the Kendrick job results, what is the value of a CMI Pad?
b. Based on Corey job results, what is the value of a CMI Pad?
3. What is the price of a CMI pad if the CMI set is priced equal to the total cost of the asbestos pads used in the Kendrick job?
4. What is the price of a CMI pad if it is priced such that the value created in the Corey job is exactly split between Corey and Curled Metal?
5. At a price of $600 to the large contractor and 25% market share (and that your production equals your sales in units, create a proforma income statement (contribution method). What is the total profit?
6. What price results in breakeven ($0 profit) if you sold and produced 12,000 CMI pads?
7. At a price of $400, how many units must be sold to breakeven at the 9,000 unit production rate?
8. For question #7 above, at a price of $400, what is the market share required to