1 E Any work required in an Appendix must be done in the blue boxes. Please read the narrative carefully to see what Elliot is requesting. 2 3 4 5 Appendix I 6 7 Production in units: 8 Terrific Tank 9 Run Like the Wind Pullover 10 Live in Leggings 11 Monthly Production 12 210 180 621 1,011 G 2. Mixed Costs 3. Variable cost 13 Costs: /month Classification Fixed Portion Variable Portion per unit Product vs. Period 14 Fabric Terrific Tank (note 1) $ 2,176 15 Fabric - Run Like the Wind Pullover 3,688 16 Fabric Live in Leggings $ 9,725 17 Tailor's hourly wages - Terrific Tank (note 2) 3,247 Tailor's hourly wages - Run Like the Wind 18 Pullover $ 1,820 19 Tailor's hourly wages - Live in Leggings $ 4,713 20 Tailor supervisor's salary (note 3) $ 2,063 Inventory and fulfillment manager's salary 21 (note 4) $ 1,997 22 Shipping salary (note 5) $ 1,446 23 Receiving clerk salary (note 6) $ 1,826 24 Rent on factory space (note 7) $ 7,804 25 Rent on office space (note 7) 2,667 26 Insurance factory (note 8) $ 1,975 27 Insurance office space (note 8) $ 147 28 Utility costs (note 9) 2,335 29 Office supplies $ 1,100 30 Maintenance on building (note 10) $ 3,600 31 Depreciation on office equipment (note 11) $ 1,800 32 Depreciation on factory equipment (note 11) $ 2,400 33 Rent on factory equipment (note 12) 3,469 34 Advertising Yoga Campaign (note 13) $ 1,446 35 Advertising - Run Club Campaign (Note 14) 1,486 36 Shipping expense (Note 15) $ 1,121 37 Bookkeepers' salary (Note 16) $ 1,658 38 President's salary (Note 17) $ 4,764 39 40 Notes 41 Note 1: All fabric is outsourced from our supplier in Taiwan. 42 Note 2: There are three tailors who each work on a selected product. They come in as needed and are paid hourly. 43 Note 3: The supervisor performs quality control. 44 Note 4: The inventory and fulfillment manager manages the fabric that comes from Taiwan and checks all outgoing shipments. 45 Note 5: The shipping clerk is paid on a monthly basis and fullfills all of the outgoing orders. 46 Note 6: The receiving clerk goes through all shipments of raw materials received from the supplier in Taiwan and sorts these shipments by the product they pertain to. They are paid $1000/month, plus an additional amount based on the number of shipments received. This cost is allocated to the number of products produced per month. 47 Note 7: The building is 2,000 sq. feet. 500 sq. feet is dedicated to the "head office" space 48 Note 8: This is insurance on the building, the building is 2,000 sq. feet. 500 sq. feet is dedicated to the "head office" space 49 Note 9: Utility costs are $1,500/month fixed and the remainder varies based on the number of items produced. This is allocated based on number of units produced. 50 Note 10: Maintenance costs are $1,200/month fixed and the remainder varies based on the number of items produced. This is allocated based on number of units prod 51 Note 11: Depreciation is calculated using the straight-line method 52 Note 12: Rent is paid monthly for the sewing machines 53 Note 13: The Yoga Campaign advertises the Terrific Tank and Live in Leggings 54 Note 14: The Run Club Campaign advertises the Run Like the Wind Pullover 55 Note 15: Shipping varies based on the number of orders received per month. This is allocated based on the number of units produced. 56 Note 16: The bookkeeper, Kendra, goes through the books and prepares financial statements on a monthly basis. 57 Note 17: Elliot's monthly salary 58