question, How did you come up with 261 K days.? 5 x 52 is 260. Doesn't Change the bottom line conclusion your trying to draw, However, it's your work hours constant that has me troubled. I understand the Idea of sticking to 240 work hours, but by definition, if you have one less route in making the comparison, of course your going to show less cost. Plus no business does a cost analysis that way.
In doing a cost analysis of this fictitional office, you would have to figure the the cost of 6 H routes and 6 K routes.
The cost for the 6 H routes don't change $502,000
The cost for 6 K routes would be:
6 Regulars at $480,000
6 subs at $77,000 (Rounded) ((312 K days +125 days) x $22 x 8)
Total Cost $557,000
80% of success is just showing up - Woody Allen