A business has been created that is established in a kiosk in the hall of a shopping center. The cost of leasing the kiosk or cart is 15% of total sales (this includes water, electricity and the connection for the ATM and credit card collection machine to work). In addition, an initial deposit of $ 1,500 is required to receive the key to the kiosk or cart. This deposit is subtracted the first year of 15% to be paid to the mall.

The business sells fancy jewelry. This business sells a single product which has been manufactured, and is sold at a single price. In conclusion, there is an acquisition cost and a sale price.

The following actions are required:

PART 1: Description of the business, using a table showing the list of all fixed costs and variable costs associated with the business operation.

PART 2: Estimate the amount of each cost item for one year. Reasonable and close to reality estimates are used.

Cost Estimated $ Source used to estimate the cost. Fixed Costs TOTAL terms for each item Fixed cost 1: Fixed cost 2: Fixed cost 3: Fixed cost 4: Variable Costs UNITARY terms Variable cost 1: Variable cost 2: Variable cost 3: Variable cost 4