Labor Cost Analysis

ASSUMPTIONS: Based on yogurt section time study

1. Approximately 14 hours a week is dedicated to stocking. restocking. facing. organizing and cleaning the yogurt section.

2. Standard yogurt section contains about 300 facings.

SCENARIO 1: LABOR COST AT $15/HR

NO TRAYS

14 hours/week labor hours. .. for 16 weeks=224 labor hours ($10,920 per year/ Labor)

At $15/hr. at 224 hours=$3360 labor dollars.

WITH ATI TRAYS

7 hours/week labor hours ... for 16 weeks=112 labor hours ($5,460 per year/Labor)

At $15/hr. at 112 hours=$1680 labor dollars.

Savings of $1680 in Labor dollars per 16 weeks. Approximately $5.460 in savings per year

SCENARIO 2: LABOR COST AT $10/HR

NO TRAYS

14 hours/week labor hours ... for 24 weeks=336 labor hours ($7,280 per year/Labor)

At $10/hr. at 336 hours=$3360 labor dollars.

WITH ATI TRAYS

7 hours/week labor hours ... for 24 weeks=168 labor hours ($3,640 per year/ Labor)

At $10/hr. at 168 hours=$1680 labor dollars.

Savings of $1680 in Labor dollars per 24 weeks. Approximately $3,640 in savings per year.

These calculations are based on hard cost savings only with the purchase of the trays.