- 45 -
basis and accumulated those total costs throughout the 5-
year period of the contract. Gross calculated the aggregate
amount of those costs to be about $382,000.16
In addition, to check the reasonableness of his cost method
analysis and in the absence of a demonstrable income stream,
16 Because of a poorly reproduced exhibit, we had considerable
difficulty in deciphering the schedule submitted by Gross in his
report in support of his calculation of aggregate costs of
$382,000. Our best approximation of the amounts reflected on
that exhibit are as follows:
Estimated Annual Contract Expenditures by HJI
(And Its Subcontractors) in Performing
Research and Experimentation Services
Year
1982 1983 1984 1985 1986
Land Use Charge $129.25 $129.25 $129.25 $129.25 $129.25
Hourly Labor 61.76 123.51 123.51 123.51 75.44
Equipment Use 20.30 40.59 40.59 40.59 41.44
Irrigation 125.76 126.76 125.76 125.76 108.82
Chemicals 16.80 33.50 33.50 33.50 58.16
Contract Labor 13.24 25.48 25.48 25.48 6.44
Harvesting Labor - - 128.00 128.00 128.00
Consulting (Modeling
Year 1 Only -
5 Months effort) 1,466.67 3.20 3.20 3.20 9.25
General Farm
Maintenance 16.00 16.00 16.00 16.00 16.00
Farm Management 50.00 50.00 50.00 50.00 50.00
Sub-Total 1,899.78 548.29 675.29 675.29 622.80
Administrative
and Overhead 379.96 109.78 136.38 136.38 124.56
Sub-Total 2,279.74 658.07 811.67 811.67 747.36
Profit 455.96 131.61 162.33 162.33 149.47
Sub-Total 2,735.69 789.68 974.00 974.00 896.83
Total [for 60
acres (rounded)] $164,141 $47,381 $58,440 $58,440 $53,810
5-year Total $382,212
Per Acre Total $6,370
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