DEVELOPMENT COSTS

Harold D. Koch PO Box 167 Gann Valley, SD 57401 Phone #: 605-293-3430 Toll Free: 1-800-822-3430 Email: hdkoch@midstatesd.net

The following lists provide some idea of the total initial cost that will be involved in this venture. The manufacturing/ retailing business should understand that this machinery can be used to build a lot of different products. The machinery designated "Koch Mfg." can be built by us. The sheet steel suggested will be enough to build about twenty toppers; the strips, flats, angles, rounds, and tubes should be enough for twenty toppers; and the paint enough for about forty toppers.

MACHINERY Welding Equipment $3,900 Apron Sheet Metal Bender (Koch Mfg.) * $18,200 Hydraulic Power Unit (Koch Mfg.) $2,600 Iron Worker (Koch Mfg.) $5,200 Tube Bender (Koch Mfg.) $1,300 Sheet Metal Shear (Koch Mfg.) $12,350 Hydraulic Press (Koch Mfg.) $1,560 Plasma Cutter $3,250 Air Compressor & Painting Equipment $1,200 Chop Saw, Drill Press & Hand Tools $1,560 Jigs, Fixtures, & Special Tools $2,990 Total Machinery Costs $55,900 MATERIALS Sheet Steel $7,800 Steel Strips, Flats, Angles, Rounds, & Tubes $1,950 Paint Supplies $1,950 Total Materials $11,700 OPERATING CAPITAL Beginning Operating Capital $5,200 Operating Capital Credit Line $9,100 Total Operating Capital $14,300 SUMMARY OF DEVELOPMENT COSTS Total Machinery Costs $55,900 Total Materials $11,700 Total Operating Capital $14,300 Total Estimated Development Costs ** $81,900 * Koch Mfg. is the only company that manufactures a 12 ft. hydraulic apron sheet metal brake. ** The $81,900 cost is assuming the start-up is from scratch. Most operations will have some tooling. We have a lot of this machinery on hand. We can also ship on our trailers.

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