The above table gives ten-year averages. The calculations for the "Incremental Basis" evaluation are shown
in Exhibit 6 (reproduced below). The "Facilities Used Basis" involves adding the building and agglomerator allocation
($453,000) and the following allocation for overhead costs "directly related to these existing facilities" (see p. 470).
1st per. 2nd per. 3rd per. 4th per. 5th per. 6th per. 7th per. 8th per. 9th per. 10th per.
Funds Employed Fiscal 68 Fiscal 69 Fiscal 70 Fiscal 71 Fiscal 72 Fiscal 73 Fiscal 74 Fiscal 75 Fiscal 76 Fiscal 77 10-yr avg
Facilities overhead 28 28 28 28 28 28 28 28 28 28 28
The "Fully Allocated Basis" involves adding an allocation of $19,000 for fixed capital at the start of the
project as Super's "share of the distribution system assets" (see p. 471). It also involves adding the
following allocation for additional overhead expenses, as is partly explained on p. 471.
1st per. 2nd per. 3rd per. 4th per. 5th per. 6th per. 7th per. 8th per. 9th per. 10th per.
Funds Employed Fiscal 68 Fiscal 69 Fiscal 70 Fiscal 71 Fiscal 72 Fiscal 73 Fiscal 74 Fiscal 75 Fiscal 76 Fiscal 77 10-yr avg
Additional overhead 90 90 90 90 90 90 54
Keep in mind that the building, agglomerator, and distribution system assets allocations are one-time
charges, just like the $200,000 for packaging equipment is a one-time expense.