|
arch 1978
/l i-
User's Guide
for the University of Florida
Plant
Cost
Estimation Program
HUME LIBRARY
!.F.A.S. Univ. of Florid,
Food and Resource Economics Department
Agricultural Experiment Stations and
Cooperative Extension Service
Institute of Food and Agricultural Sciences
University of Florida, Gainesville 32611
Dan L. Gunter
I I
Economics Report 92
ABSTRACT
This report describes an interactive computer program which can be
used to estimate individual foliage plant cost. A portable data terminal
can be used to access the program. The program uses data from accounting
records and plant growing information as the basis for the plant cost
estimates. Knowledge of the individual plant costs will allow growers to
base production decisions on profits.
Key words: cash costs, non-cash costs, allocated costs, square feet
in propagating and finishing space, investment, square feet for growing
plant, weeks to grow the plant.
ACKNOWLEDGEMENTS
The impetus for development of the program and procedure described
in this report was a number of Florida nurserymen who described one of
their major management problems as being lack of a system for estimating
individual plant costs. Much of the procedure described in this report
is based on cost estimation systems utilized by Florida nurserymen. Other
growers, Florida cooperative extension agents and IFAS professionals made
valuable suggestions on earlier versions of this program.
Carolyn Almeter and Nancy Melton enthusiastically provided computer
programming assistance. Bob Strain, Ken Clayton and John Otte made valuable
suggestions on the content of this manuscript. Susan DiGerlando typed the
many drafts of the manuscript. As always any errors in content of the re-
port remain the responsibility of the author.
TABLE OF CONTENTS
ACKNOWLEDGMENTS. . ..
LIST OF EXHIBITS . .
LIST OF TABLES . .
LIST OF FIGURES . .
PROGRAM DESCRIPTION . .
USER INFORMATION REQUIREMENTS. .
ACCESSING THE PROGRAM . .
AN EXAMPLE . . .
STOPPING THE PROGRAM PREMATURELY
AND HANDLING INPUT ERRORS .
ADDITIONAL COMMENTS ON THE PLANT
Page
. . . . 1
. . . . i
. . . . ii
. . . . iii
. . . . 1
. . . . 2
. . . . 7
. . . . 9
. . . . 15
COST ESTIMATES. . . 23
COST ESTIMATES.............. 23
LIST OF EXHIBITS
Green Foliage Nursery production space, 1977 . .
Green Foliage Nursery production and sales, 1977. .
Green Foliage Nursery investment, 1977 . .
Green Foliage Nursery production costs, 1977 . .
LIST OF TABLES
Computer program abbreviations and definitions .
ii
Exhibit
1
2
3
4
Table
1
LIST OF FIGURES
Figure Page
1 Foliage plant cost input work sheet. ......... 3
2 Foliage plant cost input work sheet
for the Green Foliage Nursery . ... 13
3 Computer results ................... 16
4 Computer program .. .................. 27
USER'S GUIDE FOR THE UNIVERSITY OF FLORIDA
FOLIAGE PLANT COST ESTIMATION PROGRAM
Dan L. Gunter
INTRODUCTION
Few foliage nurserymen formally estimate their cost of producing
plants of a given variety, species or size. Most, however, make decisions
where such information would be of great value. Plant cost information
would aid managers in establishing prices, analyzing profits and inventory
valuation.
Most foliage nurserymen do not have cost accounting systems to es-
tablish individual plant costs. However, plant cost estimates can be de-
veloped from existing nursery records.
Each manager has two alternative ways of estimating plant costs.
First, the costs can be estimated by using pencil and paper. Secondly,
the costs can be estimated by using a portable data terminal and a
University of Florida computer program. This report describes the program,
provides procedures for accessing the program, describes the information
needed from the user and demonstrates the application of the program.
PROGRAM DESCRIPTION
The program to estimate the plant costs is interactive. That is it
operates on the basis of a question and answer procedure. A person does
not have to be a computer programmer to use the program. It is written
in WATFIV for the Northeast Regional Data Center's (NERDC) Gainesville
DAN L. GUNTER is an extension production economist, Food and Resource
Economics Department, University of Florida, Gainesville, Florida.
i
USER'S GUIDE FOR THE UNIVERSITY OF FLORIDA
FOLIAGE PLANT COST ESTIMATION PROGRAM
Dan L. Gunter
INTRODUCTION
Few foliage nurserymen formally estimate their cost of producing
plants of a given variety, species or size. Most, however, make decisions
where such information would be of great value. Plant cost information
would aid managers in establishing prices, analyzing profits and inventory
valuation.
Most foliage nurserymen do not have cost accounting systems to es-
tablish individual plant costs. However, plant cost estimates can be de-
veloped from existing nursery records.
Each manager has two alternative ways of estimating plant costs.
First, the costs can be estimated by using pencil and paper. Secondly,
the costs can be estimated by using a portable data terminal and a
University of Florida computer program. This report describes the program,
provides procedures for accessing the program, describes the information
needed from the user and demonstrates the application of the program.
PROGRAM DESCRIPTION
The program to estimate the plant costs is interactive. That is it
operates on the basis of a question and answer procedure. A person does
not have to be a computer programmer to use the program. It is written
in WATFIV for the Northeast Regional Data Center's (NERDC) Gainesville
DAN L. GUNTER is an extension production economist, Food and Resource
Economics Department, University of Florida, Gainesville, Florida.
i
2
AMDAHL computer. The program is contained in the Appendix A.
Program Logic
If a nurseryman is asked how much it costs him to grow a plant, he
usually begins to allocate the various inputs and their cost. Typically,
the nurseryman enumerates the container and cutting cost and sometimes the
cost of the growing media. The other costs associated with a plant are
more difficult to allocate directly to specific plants. One way to appor-
tion the remaining costs is on the "rent" basis. Simply stated, the nur-
sery growing space is rented to the plants. The amount of "rent" each
plant pays depends upon the amount of space required, the length of the
growing period and the rental rate. Summing the allocated costs and
"rent" gives the individual plant cost.
USER INFORMATION REQUIREMENTS
The computer program allows users to estimate the cost of plants
requiring up to three years of growing time. This feature also means
that costs for plants started in one accounting year and finished in a
second accounting year can be accurately estimated. The amount of infor-
mation required from each user depends upon the nature of the plants for
which a cost is to be estimated.
A two page input work sheet (Figure 1) is provided to help users or-
ganize the nursery information. Page one is for accounting type infor-
mation. Page two is for information specific to each plant.
Section 1 of the work sheet
This section is to be completed with a 1, 2, or 3. If a "1" is en-
tered, this means that only one year's cost data will be entered and that
A forthcoming Florida Cooperative Extension Service Circular en-
titled "A Guide for Estimating Foliage Plant Cost" explains the "rent"
method more completely.
1. Number of years required to produce any single plant in
your nursery. If plants are started and finished in the
same accounting year, enter 1. If plants are started in
one year and finished in a second year, enter 2. If plants
are started in one year and are grown during any part of
three accounting years, enter 3. No more than three year's
cost data can be entered.
2. Cost and production data for the number of years specified
in'l above will be requested. List data for the most re-
cent year first.
a. Items requested, year one:
Year one
Unallocated cash cost,'year one2
Unallocated non-cash cost, year one
Square feet in propagating and finishing, year one
Investment, year one
b. Items requested, year two:
Year two
Unallocated cash cost, year two
Unallocated non-cash costs, year two
Square feet in propagating and finishing, year two
Investment, year two
c. Items requested, year three:
Year three
Unallocated cash cost, year three
Unallocated non-cash costs, year three
Square feet in propagating and finishing, year three
Investment, year three
3. Desired rate of return.on the investment,
Sum of all cash costs which cannot be directly allocated to individual
plants.
3Sum of all non-cash costs which cannot be directly allocated to
individual plants.
4Include value of land, plants, buildings and equipment investment.
Figure l.--Foliage plant cost input work sheet
------"
3---~1
-"---~
----c"-
--~-"--
---~i--
4. Plant information
Container Allocated Weeks Sq.ft. Weeks Sq.ft. Weeks Sq.ft. Percent
size costs grown required grown required grown required plant
year 1 year 1 year 2 year 2 year 3 year 3 loss
1.
2.
3.
4.
5.
6.
7. ,
8.
9.
10.
Figure l.--Continued
Plant
name
-----
-~----
-c~--
r
--
the plant for which a cost is being estimated is grown during the 12
month accounting period. Likewise, a "2" specifies that two year's ac-
counting data will be entered and that the growing time for at least
one of the plants overlapped the two accounting periods. Similarly, a
3 indicates that three year's accounting data will be entered, and that
the growing time for one or more plants overlapped three accounting periods.
Section 2 of the work sheet
This section is for organizing the accounting information. Space for
information for three accounting periods is provided. The accounting data
for the most recent accounting year should be organized in section 2a.
Year.--Enter the accounting year the data represent. The accounting
year need not correspond to the calendar year.
Unallocated cash cost.--This is obtained by subtracting any allocated
cash cost categories from the total annual nursery cash costs. For example,
if the cost of containers and cuttings can be allocated to each of the plants
grown, then subtract the annual cost for these categories from the total
annual cash costs. The total annual nursery cash costs can be obtained from
the income tax report or other accounting records. The unallocated cash
costs should include all cash cost categories which cannot be assigned di-
rectly to individual plants. An operator's salary can also be included as
a cost of production for purposes of estimation of the plant costs.
Unallocated non-cash costs.--This amount should include depreciation,
and supply inventory value changes of those inputs for which costs were
not directly allocated. The depreciation costs are reported on the income
tax reports or contained in a depreciation schedule. Supply inventory
changes depend on maintaining appropriate records. An increase in the
supply inventory value means that more supplies were purchased during the
accounting period than were used in production. Thus, the unallocated
non-cash costs should be reduced by the value of the supply inventory in-
crease. Conversely, decreases in the supply inventory value should be
added to the unallocated non-cash nursery costs for the accounting year.
Square feet in propagating and finishing.--This should be net growing
space. The total area in the nursery usually includes propagating and
finishing areas, stock plant areas, roads, assembly areas, potting areas,
packing areas, and aisles. The non-growing areas and stock areas, although
necessary, do not directly contribute to plants for sale. Thus, only the
square feet in propagating and finishing space should be included in the
growing area. In some cases the propagating space may not contribute di-
rectly to plant sales. If cuttings are not directly stuck, but rooted in
propagating beds, then the propagation space should be treated as stock
areas and excluded from the square feet in the growing areas. If cuttings
are directly stuck into individual containers, then include these areas in
the growing space.
Investment.--This value should include the capital invested in land,
plants, buildings, equipment,and machinery. A conservative way to arrive
at the level of investment is to add the depreciated value of buildings,
equipment and machinery, original land cost, and plant and supply inventory
values. The values for buildings, machinery and equipment are contained in
the depreciation schedule; to arrive at the value of growing plants and
supplies, inventories are usually necessary. Some users might prefer to
use the original buildings and equipment costs and current market value of
land in the nursery.
Section 3 of the work sheet
The desired rate of return on the nursery investment is determined
subjectively. It will depend upon the nurseryman's investment opportunities
A common rate is the interest rate which could be earned if the capital in
the nursery was invested elsewhere. Some users may want to omit an invest-
ment cost. If so, enter a zero (0).
Section 4 of the work sheet
Space to organize information on the plants for which a cost estimate
will be made is provided in this section.
Plant name.--Up to a 20 character name may be specified for each
plant. Peperomia, for example is a nine character word.
Container size.--This information is for identification only. Up to:
a 20 character size specification can be used.
Allocated cost.--This cost should be on a per container basis. For
example, if container and cutting costs can be specified for each plant,
the sum of the cost of these items should be entered under allocated costs.
Any number of input costs can be allocated directly to the plants. However,
any cost category allocated directly to the plants should be excluded from
the unallocated cash costs entered in Section 2.
Weeks grown.--This should include the time required to grow the plant
plus the time the bench is open for cleaning before a new crop can be
placed in the space. Some users may choose to include the marketing time
as well as the time for growing.
Square feet required.--Enter this value in decimal terms. For example,
if square foot is required, then enter ".5". A convenient way to deter-
mine the fraction of a square foot each plant requires is to determine the
area in inches and divide by 144. For example, a container grown on a 4
inch by 4 inch area requires 16 square inches and .111 square feet (16/144).
For plants grown in overlapping accounting periods, two or more space
and growing time entries are required. For example, a plant started in
the last month of the accounting year could have been grown four weeks with
the remainder of the growing in the next year. The square feet for growing
the plants in different accounting years can also vary.
If the square feet of growing space for a particular plant changes
during the accounting year, the total plant cost can be derived by treating
the plant as if it is two separate plants and summing the estimated costs.
For example, if a plant is grown 4 weeks on .5 square foot and moved up to
.75 square foot and grown 10 more weeks, then treat it as if it is two
plants. However, the allocated cost should be specified only once for such
a plant, and a zero (0) should be entered as the allocated cost for the se-
cond calculation on that plant.
Percent plant loss.--This must be estimated by the nurseryman. The
estimate can be based on past performance in growing a particular plant.
ACCESSING THE PROGRAM
A portable data terminal can be used to access the computer program.
The terminal is connected to the NERDC computer by telephone. An accou-
stic coupler on the terminal is provided for the telephone headset.
Before dialing the telephone, set the terminal switches. Terminals will
vary as to the number of switch setting required. Some of the common
switches and appropriate settings for using the NERDC program are:
Switches Setting
a. Line feed Single or double
b. Speed 30
c. Duplex Half
d. Interface Int
e. Parity Even
f. On line Depressed
g. Power On
Dial the NERDC (904) 392-2430. Computer services are normally avail-
able from 8:00 A.M. to 3:00 A.M. Monday through Saturday and from 6:00 P.M.
to 2:00 A.M. on Sunday. Florida agricultural extension agents can use
(800) 342-7855 after 5 'P.M. Attach the telephone headset to the accoustic
coupler on the terminal when you hear the tone. The indicator light on
the terminal will become visible when a successful connection is completed.
If a connection between the terminal and computer cannot be established,
one problem could be the status of the computer. It sometimes goes down.
A recorded message can be called to determine the computer status. The
message number is (904) 392-6775. After the terminal light appears, type
a PPP]5 and the computer responds with PROCEED. If using a terminal with
upper and lower case capacity the shift key must be depressed when typing
PPP.
Next type [/ID __-__ _]6 and return the carriage. The com-
puter responds with II N Ii I I I ENTER PASSWORD. Type [ ______ 6
the password and return the carriage. The computer responds with THIS IS
TERMINAL _. A terminal number will be specified. The password protects
the account from unauthorized users and is typed in the blotted out space.
Next type [/F FOLIAGE] and return the carriage. The computer re-
sponds with FOLIAGE FETCHED.
Type [/EXEC WATFIV] and return the carriage. The computer responds
Characters inside the brackets are typed by the user.
6Florida agricultural extension agents can obtain an ID number and
Password from Dr. A.A. Straughn.
with:
$JOB
$ENTRY
CMD:
Type [RUN] and the computer will then request the information from sections
1 through 3 of the input work sheet. Each of the items of data will be re-
quested individually as ordered on the work sheet. After entering each
item, return the carriage,and the next item will be requested. After the
information from the first three sections is entered, the computer will re-
spond with some general cost information. Then, the computer requests the
specific plant information from section 4 of the work sheet.
The items of data on each plant are to be entered as requested and
the carriage returned. After the last item of data for each plant is en-
tered, the computer calculates the plant cost and prints it immediately.
After the plant cost is printed, the computer responds with:
IF YOU WISH TO CALCULATE COSTS FOR ANOTHER PLANT, ENTER "1",
OTHERWISE ENTER "2".
If a "1" is given as a response, the program will request specific plant
information from section 4 of the input work sheet for another plant. If
a "2" is given as a response, the computer responds,with:
IF YOU WISH TO RERUN THE PROGRAM, ENTER "1", OTHERWISE ENTER "2".
If a "I" is given as a response the computer will request information from
sections 1 through 3 of the input work sheet. If a "2" is given as a
sponse, the computer responds with:
SIGN OFF BY TYPING "/END" AFTER PROCEED
C$STOP
PROCEED
The user must type [/END] to properly sign off.
AN EXAMPLE
Estimating the plant costs for the Green Foliage Nursery illustrates
the application of the computer program. Mr. Green has 81,250 square feet
in production, Of this amount 15,000 square feet are in stock plant pro-
duction, and 16,250 square feet are devoted to aisles leaving 50,000
square feet from which plants can be sold (Exhibit 1).
Exhibit 2 provides production information on the plants that
Mr. Green produces. Mr. Green can allocate the cutting and container cost
directly to each plant. The three inch containers cost $.03 and four inch
containers cost $.05. Three Cordatum cuttings costing $.04 each are used
in each container, while two Peperoiia tips costing $.065 each are used in
each container. The sum of the container cost and cutting or tip cost is
shown as the allocated cost for each plant.
Exhibit 3 shows an investment in the nursery of $231,639. This in-
cludes the cost of land at the original purchase price. Mr. Green desired
a 10 percent return on the nursery investment.
Exhibit 4 shows the nursery costs for 1977. The costs include a sup-
ply inventory decrease of $2,871. If the supply inventory had increased
during the year, the value of the increase should be subtracted from the
costs since more inputs were purchased than were used. The plant cost
estimates would be biased upward if the unused supplies were included as
a cost. Total cost for the nursery was $256,010 during 1977. The costs
of plants and containers, the two input costs Mr. Green could allocate, are
included in the list of 1977 expenses.
Figure 2 shows a completed input work sheet for the Green Foliage
Nursery. The information from the exhibits are organized as follows:
1. Number of years of accounting data: 1
2. Year: 1977
3. Unallocated cash cost (excluding plants and container costs
which are allocated directly): $172,104
4. Unallocated non-cash costs: $17,433
5. Square feet: 50,000
6. Investment: $231,639
7. Desired rate of return on investment: 10 percent.
8. Section 4: information on individual plants from Exhibit 4.
Figure 3 shows the results of the computer program. The selling
prices of each of Mr. Green's plants can be compared with:
the cash cost per plant,
total cost per plant,
total cost plus return on investment, and
total cost per plant plus return on
the investment adjusted for losses.
Exhibit 1.--Green Foliage Nursery production space, 1977
Square feet
Propagating and finishing area 50,000
Stock plant area 15,000
Aisles, etc 16,250
Total area 81,250
Exhibit 2.--Green Foliage Nursery production and sales, 1977
Plant Sq. ft/ Percent Weeks to Allocated Selling
container plant grow costs price
losses
3" Cordatum .111 (4" 10 13 $ .15 $ .31
centers)
3" Peperomia .111 (4" 10 9 $ .16 $ .21
centers)
4" Zebra .444 (8" 10 24 $ .09 $1.40
centers)
Exhibit 3.--Green Foliage Nursery investment, 1977
Item Dollars
Growing plants 94,512
Buildings & improvements 86,768
Machinery & equipment 25,742
Land 15,949
Supplies 8,668
Total 231,639
I
Exhibit 4--Green Foliage Nursery production costs, 1977
Item Dollars
Cash costs
Operator's salary 22,141
Other wages & salaries 69,064
Plants & seeds to grow on 48,711*
Pots, growing containers 17,762*
Fuel oil for prod. heat 6,549
Peat, soil, shavings, etc. 4,118
Fertilizer and lime 1,371
Pesticides & other chemicals 5,022
Packing boxes & supplies 9,304
Repairs & maintenance 8,030
Equipment operating costs 3,606
Travel & entertainment 846
Insurance 4,225
Telephone & electricity 4,401
Taxes, licenses, bonds 3,043
Advertising 331
Rent: land and/or buildings 878
Other cash expenses 29,175
Total cash costs 238,577
Non-cash costs
Depreciation iiachinery & equipment 6,607
Depreciation buildings, etc. 8,045
Inventory decreases, supplies (exc. containers) 2,781
Total non-cash costs 17,433
Total all costs 256,010
A cost Mr. Green can allocate directly
1. Number of years required to produce any single plant in
your nursery. If plants are started and finished in the
same accounting year, enter 1. If plants are started in
one year and finished in a second year, enter 2. If plants
are started in one year and are grown during any part of
three accounting years, enter 3. No more than three year's
cost data can be entered.
2. Cost and production data for the number of years specified
in 1 above will be requested. List data for the most re-
cent year first.
a. Items requested, year one:
Year one
Unallocated cash cost, year one2
Unallocated non-cash cost, year one3
Square feet in propagating and finishing year one
4
Investment, year one4
b. Items requested, year two:
Year two
Unallocated cash cost, year two
Unallocated non-cash costs, year tw
Square feet in propagating and fini
Investment, year two
c. Items requested, year three:
Year three
Unallocated cash cost, year three
Unallocated non-cash costs, year th
Square feet in propagating and fini
Investment, year three
3. Desired rate of return on the investment.
1q11
To
shing, year two
ree
shing, year three
2
Sum of all cash costs which cannot be directly allocated
plants.
in individual
3Sum of all non-cash costs which cannot be directly allocated to
individual plants.
4Include value of land, plants, buildings and equipment investment.
Figure 2.--Foliage plant cost input work sheet for the
Green Foliage Nursery
4. Plant information
Plant
name
3.Zcar
4.
5.
6.
7.
8.
9.
10.
Container Allocated Weeks
size costs ground
year 1
.3 nc
4i~k
.15w
- I4
*oq
Figure 2.--Continued
Weeks
grown
year 2
Sq.ft.
required
year I
-/11
'w
Sq.ft.
required
year 2
Weeks
grown.-
year 3
13
2L4
Sq.ft.
required
year 3
Percent
plant
loss
/0
/0
For example, Mr. Green sells Cordatum for $.31. The various compo-
nents of the cost of production are as follows:
----------------------------------------------------------
PLANT NAME CORDATUM
CONTAINER SIZE 3 INCH
DOLLAR:
ALLOCATED COST PER PLANT 0.15
UIL.LLOCATED CASH COST PER PLANT FOR 1977 0.10
TOTAL CASH COST PER PLANT 0.25
UNiLLOCATED NON-CASH COST PER PLANT FOR 1977 0.01
TOTAL COST PER PLANT 0.26
RETURN ON INVESTMENT FOR 1977 0.01
TOTAL COST PER PLANT PLUS RETURN ON INVESTMENT 0.27
COST OF PLANT LOSSES 0.03
TOTAL COST PER PLANT PLUS RETURN ON INVESTMENT
ADJUSTED FOR PLANT LOSSES 0.30
-------------- I-------------------------------------------------------
Priced at $.31 a $.01 profit is earned by producing Cordatum. By comparing
the cost of the Peperomia and Zebra plants to the selling prices, we see
that Mr. Green loses money on the Peperomia and earns a profit on a pro-
duction of Zebra plants.
STOPPING THE PROGRAM PREMATURELY AND HANDLING INPUT ERRORS
Correcting typing errors before entering data
Two types of errors may commonly occur. Information can be entered
or transmitted incorrectly. Information typed incorrectly and found
PFPPPPOD EED
./ID 10019001
7. -.- ENTER PAS:_: 1'D
THIS IS TERMINAL 090
.'F FOLIAGE
FOLIAGE FETCHED
...EXEC FIRTFIV
$JOB
SErNTRY
CMND;
RUN
1
THE FOLLOWING ::E:TIDNS WILL ASK FOR DATA BY YEAR,
YEAR 1 SHOULD BE THE MOST RECENT V'ER' Y-EAR 2 :HQOULD
:E THE PREVIOUS YEAR., AfrD CONTINUINtG L.Ci-K FOR AS MANY
YEARS AS SPECIFIEDD ABOVE.
READ IN DATA FOR YEAR 1
PEHD IN YERP
1977
FEHD IN IJNALLOCI:TED CA:H COSTS
17211:14
PEAED IN UNFLLiOC:TED NON-CRSH COSTS
174:;3
READ IN SQ'UAPE FEET IN PFPDI.ICTION
5. 0000
READ IN ItN'F.E.TliHEiT
231639
:EiD IN DESIRED RATE OF RETURN ON II,'ESTrHENT
10
DOLLAPF'
UIIALLOI::TED CtASH COSTS PER S-Z.OUr.iFE FOOT F-nP 10 77 3.44
lUHALLOCATED NON-CRSH iCE:TS FEr ..i-,3 F E FOOT FOR 1977 0.5 :
TOTAL UNALLOCAFTED COST PEP S!OUm.PE FOOT 1977 3.79
RETURN ON INVEST ENT PER SQUlPF'E FODT. 0.46
TOTAL UNRLLOCHTED CO:T PER S'O.l-FE FOOT PLUS RETUIJ
OH INl',VITMENT FOR 1977 4.25
Figure 3.--Computer results
READ IN PLANT NAME
CDORATUM
READ IN CONTAINER SIZE
3 INCH
READ IN ALLOCATED COST FOR THIS PLANT
.15
READ IN W..IEEKS TO GRO.I IN YEAR 1
13
READ IN SPACE REQUIRED IN YEAR 1
.111
READ IN PERCENT PLANT LOSS
10
------------------------------3-------------1--------
PLANT NAME CORDATUM
CONTAINER SIZE 3 INCH
DOLLARS
ALLOCATED COST PER PLANT 0. 15
UNALLOCATED CASH COST PER PLANT FOR 1977 0.10
TOTAL CASH COST PER PLANT 0.25
UNALLOCATED NON-CASH COST PER PLANT FOR 1977 0.01
TOTAL COST PER PLANT 0.26
FETURN ON INVESTMENT FOR 1977 0.01
TOTAL COST PER PLANT PLUS RETURN ON INVESTMENT 0.27
COST OF PLANT LOSSES 0.03
TOTAL COST PER PLANT PLUS RETURN ON INVESTMENT
ADJUSTED FOR PLRAT L0: 1:..E. 0.: i
Figure 3.--Continued
18
IF YOU : tAIT TO CALCULTE: COi:T: FOR '!''-,-: PLANT. ENTER "1"
OTHEPiI.SE ENTEF' "2"
1
READ IN PLANT I.rME
PEr'E FPr I FA
READ IN CONTAINER SIZE
3 INCH
READ IN ALLOCATED COST FOP THIS PLANT
.16
c'EA'[ IN I.,EEKS TO :.F:DhI IN YEAR 1
9
PEAD IN SPRCE FEi-UIRED IN YEAR 1
111
PEAD IN PERCENT PLANT LOSS
10
---------------------------------I--------------------------------
PLANT HAME PEPEROMIR
CONTfIIHEP SIZE 3 INCH
ALLOCATED COST PEP PLANrT
UNFLLOCRTED CASH COST PER PLANT FOR 1977
TOTAL CA-H COST PER PLA T
ULILLODATED rMIn-C.F!.H COST PEP PLANT FOR 1977
TOTAL CDST PER PLLNiT"
RETURN ON INVESTMENT FOR 1977
TOTAL COST PER PLAinT PLUS RETUFIi DHI It'-.'E-TMEItT
COST OF PLANT LOSE:
TOTAL COST PER PI.ANT PLUS RETURN ON INVE:TMHEHT
ADJUSTED FOR PLAIT LOSSES
DOLLAR ':.
0. 16
0. 07
0.23
0.25
0.02
0.27
Figure 3.-LContinued
.------------- ----------------------------rl---
IF YOU WANT TO CALCULATE COSTS FOR ANOTHER PLANT, ENTER "1"
OTHERWISE ENTER "2"
1
READ IN PLANT NAME
ZEBRA
READ IN CONTAINER SIZE
4 INCH
READ IN ALLOCATED COST FOR THIS PLANT
.09
READ IN WEEKS TO GROW IN YEAR 1
24
READ IN SPACE REQUIRED IN YEAR 1
.444
READ IN PERCENT PLANT LOSS
10
PLANT NAME ZEBRA
CONTAINER SIZE 4 INCH
ALLOCATED COST PER PLANT
UNALLOCATED CASH COST PER PLANT FOR 1977
TOTAL CASH COST PER PLANT
UNALLOCATED NON-CASH COST PER PLANT FOR 1977
TOTAL COST PER PLANT
RETURN ON INVESTMENT FOR 1977
TOTAL COST PER PLANT PLUS RETURN ON INVESTMENT
COST OF PLANT LOSSES
TOTAL COST PER PLANT PLUS RETURN ON lti'EC:TMrENT
ADJUSTED FOR PLANT LOU.:SES
DOLLARS
0.09
0.71
0.80
0.07
0.87
0.09
0.96
0.10
1.06
Figure 3.--Continued
----------,------------------------------------- -----
IF 'i,'. W.!AT TO CALCULATE COIT:R OP lUlHER :P._'i ENTEF "1"
OTV'RWIF :iL ENTER ""
IF 'OlJU ilniHT TO FEF'UIN THE F'FOi' l:, H E TEF "1" OTHERliI:-E EIITEF "2".
2
PLEASE SIGN JFF BY TYPIriG END" riFTEF PROD:EEDi.
.:i :TOPF
PPO: EED
CPU TIME
00 00 00.9 CrOHNE"tl TI ME
00 09 20.5 TOITAL CHFiFGE $0.70
Figure 3.--Continued
before the return key is depressed can be corrected by backspacing over
the incorrect data and reentering anything erased. Consider the following
example:
READ IN SQUARE FEET IN PRODUCTION
5 0 0 0 0
READ IN INVESTMENT
331639
231639
READ IN DESIRED RATE OF RETURN ON INVESTMENT
10
Total investment was incorrectly typed as 331639. It should be 231639.
The error was corrected by backspacing through all the numbers, advancing
the paper and entering the correct numbers.
Correcting data errors after entry
After information has been typed and the return key depressed, cor-
rections cannot be made. The user should stop the program and try using
it again. The following illustrates how this can be completed:
READ IN DATA FOR YEAR 1
READ IN YEAR
1977
READ IN UNALLOCATED CASH COSTS
3736332
READ IN UNALLOCATED NON-CASH COSTS
)OFF
RS:CS JOB BNDI CODE=S:222
SFC::EED
EXECC WITFIV
:JOB
$ENTRY
CMD:
RUN
The unallocated cash cost was incorrectly entered as 3736332. After
the unallocated non-cash costs request )OFF has been entered. All infor-
mation entered prior to that has been erased. To use the program again
[/EXEC WATFIV] is entered after PROCEED and the data from section 1 through
3 from the input work sheet will be requested. The program can also be
abandoned by typing [)OFF] and [/END] after PROCEED as illustrated below;
.."F FOLIAGE
FOLIAGE FETCHED
EXECC I..RTFIV
$JOB
$.JDB
$ENTRY
CMtD:
RUN
READ IN THE NIU1EER OF "YE'RF:S YOU WILL DE ENTERING DATAT FOR.
1
THE FOLLOWINGl SECTIONS WILL A-!.: FOR DATA BY YLEH.
'YEHA 1 SHOULD BE THE MOST FECEIiT YEARR YEAR: 2 SHOULD
BE THE PREVIOUS "YEAR, AND COUNT I NU ING B E;n FOR AS MANY
YEAHS AS SPECIFIED ABOVE.
READ IN DATA FOR ','EFAR 1
READ IN YEAR
1977
READ IN UNALL'OCATED CHIH COSTS
47463527
READ IN UNHLiL~OrITED iNO-CH-C.H i.O'..TS
) OFF
RSCS JOB ABND CDrE=-2 :-
PROCEED
./END
CPU TIME 00 00 00.4 CDrNItEC:T TIME 00 01 21.0 TOTAL CHRFIGE $0.23
Responding to error messages
Occasionally data are transmitted incorrectly which result in
printing of an error message, Consider the following example:
THE FOLLOW.i.iG SECTIONS WILL ASK FOR DFTTA BY YEAR.
YER 1 :HOU-ILD BE THE MOST 'E:EIET YEAR, ': E. E .:.HOLILD
BE THE PREVIOUS YEAR, AND CONTI NU IrN EA RCK FOR AS MRF'Y
YEARS ARS -FECIFIED ABOVE.
FEfD IN. .LATA FOR YEAR 1
READ IN YEAR
1977
READ IN UINALLDCFTED CASH COSTS
, E,.:- FPF' F IMFPRDPFER CHARACTER SEQUENCE ODR I'tNVALID CFHAFRACTER IN
INPUT DATR.
FIRST 80 CHAFACTERS OF INPUT FECODFI RE-DT-..:;.:
i EECUTIODt TIME ERROR. ENTER iCQFECTIOaH OR E;-IT
TOPPED AT LINE 18
E'-.:IT
PF' .: -JOB C.OiD CDDE=O0004
FF'D: EED
Typing the D883 resulted in printing of an error message. Correction
of the data entry may not always solve the problem. The most efficient
procedure is to type [EXIT] after CMD: as illustrated above. The program
can be re-started by typing [/EXEC WATFIV] after PROCEED and following the
accessing procedures, or the program can be terminated, as illustrated
above, by typing [/END] after PROCEED.
ADDITIONAL COMMENTS ON THE PLANT COST ESTIMATES
1. The individual plant costs calculated by this method are only approx-
imations of actual cost.
2. The cost per square foot is an average. Using an average implies
that all square feet in production in the nursery are equal in value,
3. The nursery plant costs calculated from last year's records are his-
tory. When input prices are increasing, the plant costs may be under-
estimated and vice versa. Thus, plant cost estimates should be updated
as soon as the appropriate information is available. When large in-
creases in input prices are expected, nurserymen may even project an-
nual costs for such items,
4. The annual production costs should be adjusted for changes in supply
inventories during the accounting period.
5. In nurseries where some plants are grown from cuttings produced in the
nursery and others are purchased, plant costs estimated with this pro-
gram will be biased. Treating the cutting cost as an allocated expense
will bias the plant cost upward for plants grown from purchased cuttings
and costs downward for plants grown from cuttings produced in the nur-
sery.
6. Consider factors in addition to the plant cost estimates when estab-
lishing price lists. It may be necessary to grow plants providing
lower returns in order to complete a product mix. Competitor's price
lists might also be helpful in developing price lists.
APPENDIX A
0000 DIMENSION PN <5> ,>CS (5) ,TCC (3) TNC (3) TUC (3), SOFT (3) TINV <3 *,
0001 $RDI<3:> TCCF (3) TNCF (3: TUCF (3)> ,:TTUCF (3) IYR (3)
0002 $, WTG (3>) SR (3):: CCPP (3) CNPP (3) ICCPP (3) ,ICNPP (3), IRDIFP(3)
0003 1 CONTINUE
0004 PRINTr"
0005 PRINT,'READ IN THE NUMBER OF YEARS YOU WILL BE ENTERING DATA FOR.
0006 PEA' (4,*e, IYEAR
0007 PRINT,' -
0008 PRINT,'THE FOLLOWING SECTIONS WILL ASK FOR DATA BY YEAR.
0009 PRINT,'YEAR I SHOULD BE THE MOST RECENT YEAR, YEAR 2 SHOULD'
0010 PRINT 'BE THE PREVIOUS YEARS AND CONTINUING BACK FOR AS MANY"
0011 PRINTv'YEARS AS SPECIFIED ABOVE.'
0012 PRINT,- '
0013 D0 100 I=1,IYEAR
0014 PRINT 7,I
0015 7 FD.1'.iT( READ IN DATA FOR YEAR1',12)
0016 PRINT.' READ IN YEAR'
0017 READ (4: ) IYR(I)
0018 PRINT,' READ IN UNALLOCATED CASH COSTS'
0019 F'E.C (4, s*> TCC II)
0020 PRINT!' READ IN UNALLOCATED NON-CASH COSTS'
0021 READ(4>+) TNC(<:I
0022 PRINT,' READ IN SQUARE FEET IN PRODUCTION'
0023 FPER;: (4, SQFT(I)
0024 PRINT,' READ IN INVESTMENT"
0025 READ(4,)> TINV()I
0026 100 CONTINUE
00:27 PRINT' '
0028 PRINT,'READ IN DESIRED RATE OF RETURN ON INVESTMENT'
0029 READ(4)*> DRROI
0030 PRINT:,' '
0031 DO 110 I=1rIYERR
0032 RDI (1) =TINV (I) DRRO I / 100
0033 TCCF(I, =TCC(I) /SQFT <)
0034 TNCF (I) =TNC (;) /SQFT ( I
00.:5 TUC (I=TCC (I)+TNC (I)
Figure 4.--Computer program
036 TU F :F) =TUC ( I: /SQFT (I>
001;7 RIF (I) =ROI (I> .--SOFT (>
00o'8 RTUCF =TUCF I> +RDIF
0039 110 CONTINUE
0040 PRINT 99
0041 99 FC -:T (80('-'/T6i,'DLLARS'/>
0042 DO 120 I=IIYEAR
0043 PRINT C00lIYR(I >,TCCF I>T ,IY.R(I> TNCF(I>
0044 200 FORMRT(SX'.-- U' LLOCTED CfSiH COSTS PER SURfRE FD'T FOR 'I5,T61>F6.2
.Oc5 $5.'U '_';ILLCRTEBD rnr-Ci SH COSTS PER SQUARE FOOT FOR'., 15T61, F6 :.2Z
104. ST6 1, 7 ('-
0047 PRINT 210l iYR(I ),TUCF FI)> RDIF(I)
0043 210 FOPI".T (7X., 'TOTFL UINFLLCC:ATED COST PER SQUARE FDOLT' v15, T61.F6. 2/.
0049 $5XE -'PETLU.H ON IM' ESTMENT PER !:;.!RTE FOOT',T61,F6. 2/T61 7('-2'-,7:,
Oi $' TOTfiL L!-'LLCRTED COST F'-E SOU-"E FOOT PLUS RETU-'N')
0051 PRINT 220, IYR (I) FiTUCF I)
.52 I E0 FORMA1T(T34 'ON INVEST- -NT FOR' 15,T61 .F6. 2z//,
0053 120 CD "T INUE
U 5U4 PRINT 98
0055 98 FORMAT (80 (-') //
0056 PRINT 310
0057 310 FC::-T'/->
0058 311 PRINT,'FE IN PLr' NAME'
.i... RERD(4,399) PN
6U 3299 FORMAT (5: 4>
00l'1 PRINT, '
O0t'.2 PRINT ;EAD IN CONTAINER SIZE'
00-3 REFIDRC4399> CS
004r: PRINT,'
0065 PRI NT,-FREAD IN R LLOCrTED COST FOR THIS PLANT'
0066 t.RERiA(4,*) RLCST
0067 PRINTr'
0068 DO 130 I=1,IYEARR
0069 PRINT 131,I
:0070 131 FO"PRAT ( F.PE IN ,EE-.:.: TO GROW IN YERI's22
Figure 4.--Continued
0071 READ (4.)> W,.ITG: (I
0072 PRINT 132,I
0073 132 FORMAT( READ IN SPfACE REQUIRED IN YEFR',I2)
0074 PERD(4,*:) SR(I)
0075 PRINT,'"
0076 130 CONTINUE
0077 PPFINT,'RERD IN PERCENT PLANT LOSS'
0078 PE.['(4,*) PPL
0079 PRINT.,
0080 DO 140 I=1,IYEIR
0081 CCPP (I) = (TCCF (I ) +W*.iTG c I +SR (I)/52
0082 CNPP (I) = TNCF ( i *) WiTG ( i +>SR< (I >/52
0083 RDIFP (I = (RDIF (I) *tITG (I) *SR (I) /52
0084 140 CONTINUE
0085 TCP=0
0086 PRINT 405
0087 405 FORMRT (8 0(' )
0088 PRINT 407,PNCS
0089 407 FDOHi;iTT(:/T24, 'PLANT NFME 5A4/T22, CONTAINER SIZE ', 5R4../,
0090 PRINT 410,ALCST
0091 410 FORMAT(T61,'DOLLRRS'//5:X,'ALLOCRTED COST PER PLRNT',T61,F7.2)
0092 FLCST= (RLCST+. 005> 1 00.
0093 IA=ALCST
0094 ALCST=IAR100.
0095 TCP=TCP+RLCST
0096 DO 401 I=IIYEAR
0097 PRINT 420,1IYR(I)CCCPP(I)
0098 420 FDCPRiAT(5X 'UNRLLOCATED CASH COST PER PLANT FOR' 15,T61,F7.2)
0099 CCPP(I = (CCPP (I> +. 005): 100.
0100 ICCPP (I)=CCPP (I
0101 CC PP (> =ICCPP (I> /I 00.
0102 TCP=TCP+CCPP (I
0103 401 CONTINUE
0104 PRINT 425,TCP
0105 425 FORMAF(T61I,7('-')/7X,'TOTAL CASH COST PER PLANT' T61,F7.2/-:'
Figure 4.--Continued
0106 DO 402 I=1IYEAR
0107 PRINT 430 IYR(I" ,CNPP(I)
0108 430 FP-F'-:T<5X-,' UNALLOCRTED NON-CFTH COST PER PLANT FOR"', I5 T61,
0109 SF7.2)
0110 CNrF-P (I)= (CNPP (IT:+. 005) *10 :0.
0111 ICNPP I)=CNPP -I
0112 CNPP (I> =ICNPP > .I 100.
0113 TCP=TCP+Cri (PI;
0114 402 CONTINUE
0115 FFINT 435.*TCP
0116 435 FC.r.i:; T(T6i1,7('-':-":/7X 'T TriTL C'-].T PER PLANT',T61IF7.2/)
0117 DO 403 I=13 IE>I'
0118 PRINT 440., IYR(I) RD iFPI (I
0119 440 FOF'H'iT<5X,'RET.URN DI N H.'E :TE'T FOR'l I5T61 ,F7.2)
0120 TCP=TCP+FP FPFCI
0121 403 C"SiTtNUE
0122 PRINT -45.TCP
0123 445 :;';-T. (T61?7'-' >/7Xs'TOTTl_ rC.IT P-. PLF-;T PLi-: RETURN ON INVE::TfE
0124 $NT' T61, F7.2 />
0125 PL=TCP*(PPL/1 00.
0126 PL= (PL+,. r05 *I+100.
0127 IPL=PL
0128 PL=IPL/100.
0129 TCP=TCP+PL
0130 PRINT 450. PL TCP
0131 450 FDO (5X,'COCST OF PLINT LuSSES' T61 F7.2/T61,7? -.: /5X, TDTAL COS
0132 $T PER PLANT PLUS RETURN DN I'E :'ETMEMNT'/ 15X, 'JUSTED FOR PLF:T LOS
0133 '_.ES' T61,F7.2//80 -')>//)
0134 PRINT,'IF YOU I.W-T TO CALCULATE COSTS FOR ANOTHER PLLNT, ENTER "1
0135
0136 PRINT, 'OTHERWISE ENTER "2"'
0137 REFRD(4,4)*> IU
0138 PRINTs'
0139 IF(NUM.EQ.1) iGO TO 311
0140 PRINT 'IF YOU WANT TO RERUN THE P'FFO:-- EZTE' "1" CTH :ISE ENTE
Figure 4.--Continued
0141 $ R .. 2.
0 14-2 REfAD (4!, NUM
01143 PRINT!
0144 IF(NU.M.EQ. i GO; TO 1
PRINT!,'PLESFiE SSIGN OFF BY TYPING "ZEND- AFTER PROCEED.'
0 147ES ET 0
0143 SENTR'i'
ENfD OF 411ORK Fi LE
Figure 4.--Continued
APPENDIX B
Table l.--Computer program abbreviations and definitions
Abbreviation of variable Variable
IYEAR number of year's accounting data to be entered
in the loops to end counter (I=1, IYEAR). At
present 3 year's data is maximum that can be
entered.
IYR(I) year (calendar) represented by accounting data
TCC(I) unallocated non-cash costs
TNC(I) unallocated non-cash costs
SQFT(I) square feet in propagating and finishing space
TINV(I) investment
DRROI desired rate of return on investment
ROI(I) return on investment (TINV* DRROI/100)
TCCF(I) unallocated cash costs per square foot (TCC/SQFT)
TNCF(I) unallocated non-cash costs per square foot
(TNC/SQFT)
TUC(I) total unallocated costs (TCC + TNC)
TUCF(I) total unallocated costs per square foot (TUC/SQFT)
ROIF(I) return on investment per square foot (ROI/SQFT)
ATUCF(I) total unallocated cost/sq.ft. plus return on in-
vestment (TUCF + ROIF)
PN plant name
CS container size
ALCST* allocated cost of plant specified as PN
WTG(I) weeks to grow by year
SR(I) space required by year
PPL percent plant loss
CCPP(I)* unallocated cash costs per plant (TCCF*WTG*SR/52)
CNPP(I)* unallocated non-cash cost plant (TNCF*WTG*SR/52)
ROIFP(I) return on investment per plant (ROIF*WTG*SR/52)
TCP total cost per plant. It is used for accumulation
of all totals of various plant costs.
PL* plant loss cost
*
Costs were set to integer and truncated to insure that the printed
costs are rounded correctly.
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