September 1996 - REVISED

ANALYSIS OF GO-KART TRACK OPERATION:

COMPARISON OF COST AND INCOME

GENERAL CONSIDERATION:

Operating Season:

Length of season will vary from 12 months in the Southern to West Coast regions to five months in North Central to North Eastern regions. In each of these regions there will be a build up and drop off in track activity.

Daily Operation:

At peak season, a track will operate 12 hours per day ( 11 a.m. to 11 p.m. Early season and late season, hours of operation will be based on rider interest and profitability.

Operating Days per Season:

A five month season or 150 days will not be achieved in total due to inclement weather. The total days of operation will vary from season to season.

Track Conditions:

Material used for track surface and track layout will influence Kart maintenance and parts replacement. A rough track will induce vibration and cause part failures. Since the kind, characteristic, location and land cost associated with a track vary widely, the track will not be considered further in this analysis.

Track Operations:

The behavior of drivers will greatly influence the cost of Kart upkeep and profit from Kart operation. Rough driving and collisions damage Karts. More Karts are required than considered in this study to maintain a desired income if rough driving and bumping are allowed.

Kart Operation:

Based on time of season and time of day a number of Karts will be readied for use. Kart engines are started and continue to run until taken out of service that day.

Manpower:

Only dependable, safety conscious, pleasant and track-interested personnel can be employed. Two experienced people can handle up to eight Karts. Preferably there should be three people for 6 to 12 karts, adding one person thereafter for up to six karts.

Kart Maintenance:

Every part of the Kart including its frame is replaceable. Should the frame break, it can be repaired by welding. A high tire replacement rate can be expected. This rate will vary, of course, with Kart use.

SPECIFIC CONSIDERATIONS for this analysis:
Operating Season:	5 months or 150 days
Daily Operation:	12 hours
Operating days per season:	150, 125, 100 and 75
Track Conditions:	Asphalt, well sealed, about 1/4 mile
Track Operation:	Good behavior demanded of drivers
Kart Operation:	10 Karts with 8 oper. 12 hrs. per day
Ride Time:	4 minutes
Rider charge time:	1 minute
Total time/ride:	5 minutes
Maintenance:	1 set of tires per Kart per month
*Fuel consumption:	1 gal. per three hour operation
Oil consumption and change	2 1/2 gal. per Kart per season

*Johnson Karts get approximately 80 miles per gallon of gasoline

FEASIBILITY ANALYSIS:

l2 Karts W/Accessories	$31,550.00
Replacement Parts - First Year (Approximately)	$1,400.00
200 Tires including tubes (100 Front, 100 Rear)	$3,600.00
Total	$36,550.00

Supplies:
4000 Gal. Gasoline @ $ 1.35 gal	$400.00
25 gal oil @ $6.00 gal	$150.00
10 cans spray lubricant @ $4.30/Cn	$43.00
Total	$ 5,593.00

Labor:
1 Lead man, ticket taker @ $6.75/hr	$12,150.00
1 Track man @ $5.50/hr	$9,900.00
1 Ride Counter @ $5.25/hr	$9,450.00
Total	$31,500.00
Track expenses	(see separate table)
Taxes	(see separate table)
Insurance	(see separate table)
Total	$73,643.00

INCOME:
Constant Conditions:
1) 12 Karts with ten operating 12 hours per day
2) Ride time is five minutes including one minute for getting in and out of Kart
3) Charge for five minute ride is $ 3.00
4) Maximum rides per day per Kart is 144
5) Typical big day:	6 hours max. rate = 72 rides per Kart 3 hours 3/4 rate = 27 rides per Kart 3 hours 1/2 rate = 18 rides per Kart TOTAL 117 rides per Kart

Spectrum of Conditions @ $3.00 per ride

Rides/Kt day	Karts Operating	Operating Days/season	Season Income
144	12	150	$777,600.00
117	10	150	$526,500.00
117	10	125	$438,750.00
117	10	100	$351,000.00
117	10	75	$263,250.00
144	10	125	$540,000.00
100	10	125	$375,000.00
75	10	125	$281,250.00
50	10	125	$187,500.00
40	10	125	$150,000.00
30	10	125	$112,500.00

	Kart Prices	7340 N. 76TH Street Milwaukee, WI 53223 (414)353-5969 FAX (414)353-4078
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