RCL contract expenses

Here is what we are currently paying for leased space.  The key here is that many of these costs are fixed.  Thus if we were not there RCL would make far less profit.

The lease rates are based on market rates agreed on and updated periodically since. (Mike Nigbur assisted in this review.)
The hard costs are as follows;

  • Lease- Bus storage- (16 buses/ 6 mos.) $32,143
  • Lease- Shop & Office  (includes 9 buses in maintenance bays at night 6 mos.) $38,733 allocated by service hours
  • Tire storage – $212 per month
  • Plus property taxes, insurance and utilities – allocated by service hours
  • Office equipment deprecation- allocated by service hours
  • Shop equipment deprecation- allocated by mechanics wages

Estimates for 6 months (does not include supplies, communications etc)

  • Depreciation of shop and office equipment – $14,039
  • Office /shop lease – $28,678
  • Garage Lease – $32,143
  • Lease- Tire storage – $1,273
  • Property taxes – $14,939
  • Property insurance – $7,105
  • Utilities- $35,020
  •  Total Estimate $133,197

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