1'I'ou plan to open a small business for manufacturing pet oollars, leashes, and harnesses. You have found a workshop space you can use for sewing your products. After some research and planning, you have estimates for the ya rious operating costs for your business. We total square footage for the sewing rooms is 1,500 square feet broken into three areas [500 square feet each]. You have taken out a loan for startup oosts, and the monthly payment is $550; it goes into effect immediately and should be accounted for in your costs. You will also collect a modest salary for the rst year of $500 per month; remember to divide evenly among the servioes. Salary and Hiring Data - Cine collar maker, who will be paid $15.00 per hour and work 40 hours per week c Dne leash maker, who will be paid $16.00 per hour and work 40 hours per week i Cine harness maker, who will be paid $12.00 per hour and work 40 hours per week - Cine receptionist, who will be paid $15.00 per hour and work 30 hours per week Other Costs i Rent: $250 per month; allocate based on square footage - Hightensile strength nylon webbing$12 per yard of webbing o 3 oollars per yard of webbing o 2 leashes per yard of webbing o 2 harnesses per yard of webbing i Polyesterfnylon ribbons$3I per yard of ribbon on 3 oollars per yard of webbing o 2 leashes per yard of webbing o 2 harnesses per yard of webbing i Buckles made of cast ha rdware$0.50 per buckle o 4 buckles used per collar :3 3 buckles used per leash o 8 buckles used per harness c 3 industrial sewing machines at $3,300 each for a total of $9,303; depreciation is $155 per month {5 year life]: i Utilities and insurance: $600 per month; allocate based on square footage i Scissors, thread, cording: $1,200 i Price tags: $250 for 2,500 [$0.10 each] i Ofce supplies: $2,400 or $200 per month i Critter business equipment: $2,000 i Loan payment of $550 per month i Salary drawn of $500 per month Milestone One - Variable and Fiked Costs Collars JILT Item Variable Cost/Item Item Fixed Costs 9 High-tensile strength nylon webbing 5 4.00 Collar maker's salary (monthly) 5 2,773.33 10 Polyesterylon ribbons Depreciation on sewing machines 11 Buckles made of cast hardware Rent 12 Price tags Utilities and insurance 13 Scissors, thread, and cording 14 Loan payment 183.33 15 Salary to self 166.67 16 17 19 Total Variable Costs per Collar Total Fixed Costs 20 22 23 Leashes 25 Item Variable Cost/Item Item Fixed Costs 27 High-tensile strength nylon webbing Leash maker's salary (monthly) 28 Polyesterylon ribbons Depreciation on sewing machines 29 Buckles made of cast hardware Rent 30 Price tags Utilities and insurance 31 Scissors, thread, and cording 32 Loan payment 33 Salary to self 34 35 36 38 Total Variable Costs per Leash Total Fixed Costs S 39 41 2 Harnesses 44 Item Variable Cost/Item Item Fixed Costs 46 High-tensile strength nylon webbing Harness maker's salary 47 Polyesterylon ribbons Depreciation on sewing machines 48 Buckles made of cast hardware Rent 49 Price tags Utilities and insurance 50 Scissors, thread, and cording 51 Loan 52 Salary to self 53 54 55 57 Total Variable Costs per Harness Total Fixed Costs 58 60
