1. Choose a supplier that you will use to make purchases for your one-time purchases identified in your Start Up Exercise, such as computers or equipment needed for your business.
   1. List the items and the quantity of each item needed from your Start Up Exercise [pictures provided], and the retail cost of those items.
   2. Determine the total retail cost of these items (one-time purchases).
   3. Using the total retail cost of your items, and given a 15/8/2 chain discount, calculate:
      1. Net cost equivalent
      2. Net price
      3. Single discount equivalent
2. Choose a supplier that you will use to order regular supplies (variable expenses, recurring purchases) identified in your Start Up Exercise.
   1. List the products and the quantity of each item needed for the month from your Start Up Exercise, and the retail cost of those items.
   2. Determine the total retail cost for the supplies (recurring purchases).
   3. Create an invoice for the total cost for these supplies, dated May 26.
   4. Using this invoice, calculate each of the following:
      1. Terms of 3/15, net 30 (ordinary dating)
         1. Find the last date for the discount.
         2. Find the amount due with discount.
         3. Determine due date of net payment.
      2. Terms of 2/10, EOM (proximo)
         1. Find the final date for the discount.
         2. Find the amount due with discount.
         3. Determine due date of net payment.
      3. Terms of 5/20, ROG with shipment arriving on June 2.
         1. Find the final date for the discount.
         2. Find the amount due with the discount.
         3. Determine due date of net payment.
      4. Terms of 4/20 prox., partial payment of 70% of the net paid on June 15
         1. Calculate the amount credited for partial payment.
         2. Calculate the balance due on the invoice.
         3. Determine the cash discount earned

Identify Type of Business Choose a fictional service-oriented business. Some possible options include: Lawn Care Landscaping Hair Nails Massage Tanning Yoga/Pilates Dance Lessons/Classes Personal Trainer Party/Wedding Planner Graphic Artist Web Designer D.J. Fashion/Costume Design Music Lessons/Classes Pet Services Architect/Interior Design Catering/Food Truck I could start a fashion and costume design business. This would involve designing and making clothes, costumes, and accessories for clients, as well as providing styling and design consultation services. You could specialize in making clothing for special occasions wie weddings, formal events, and photo shoots, or you could create custom costumes for theater, film, and other performance industries. Additionally, you could also offer classes or workshops in sewing, fabric manipulation, and other related skills. Your business must have 2 employees plus yourself. (These are not independent contractors). You do not need additional employees, and recommend that you think small. While your ultimate dream business may have significantly more employees, for the Final Exam Project, include only these three. These are fictional employees, do not identify them by name. You must have one from each of the categories (below). Research your particular industry to determine your appropriate monthly salary as well as your employees' wages. Based on your research, determine earnings for each person on your payroll for the period listed. 1. Self (Owner) - paid with a monthly salary. State the salary. 2. Full Time Employee paid based on hourly work. State the hourly wage. The hourly wage will be tracked by a time-card Paid either semi monthly or biweekly 3. Piecework employee - paid by piece/client/class/other, NOT hourly. List the service this employee will provide and amount paid by the piece Pay must be tracked by number served or the specific number of pieces Paid weekly For you and each employee, also include the following (use a variety, not all single with no kids): Single or married Number of withholding allowances. The number of withholding allowances is 1 for owneriemployee plus (1) spouse and (1) for each child (if any). For example: an employee can be a single parent of 2 children so that would be 3 allowances. Business: Fashion and Costume Design Self (Owner) - Monthly salary: $4,500 Full Time Employee - Hourly wage: $25.00 This employee will work 40 hours per week, for a total of 160 hours per month. Based on the hourly wage of $25.00, the monthly earnings for this employee is: $25.00160 hours =$4,000 Piecework Employee Piecework wage: $300 per costume made This employee will create costumes for clients. Let's assume they create 8 costumes per month. The monthly eamings for this employee is: $3008 costumes =$2,400. Now that we have the monthly salaries for each of the three employees, let's create a budget for the business.Monthly budget income: - Average revenue from costume sales: $3,000 - Cost of raw materials for costume creation: $1,500 - Average revenue from other design services: $1,000 Expenses: - Monthly rent: $1,200 - Salaries and wages for all employees: $6,900 - Utilities (water, electricity, phone, internet, etc.): \$400 - Marketing and advertising costs: \$300 - Insurance: \$200 - Total expenses: $8,400 Checking \& Savings Accounts 1. Choose a local bank or credit union and get information (in person or online) about a business checking account and a business savings account, requirements for business loans, and other business services they provide. 2 . Specifically note service fees, per check charges, and percent interest earned on various types of accounts. 3. Determine whether each account has simple or compound interest and indicate the interest rate. Summarize the information, do not simply cut and paste the full web site listings Bank/Credit Union Name: Location: Offerings: - Business Checking Account: minimum balance requirements, service fees, per check charges - Business Savings Account: minimum balance requirements, percentage interest earned on different types of accounts, compounding interest rate - Business Loans: eligibility requirements, interest rates, repayment terms Other Services: - Online/Mobile Banking Credit Cards 1. Obtain information about a business credit card from the bank you chose for item C or with a credit card company such as Bank of America. 2. Specifically note their interest rate and whether interest begins as soon as you purchase, or if you only get charged interest if you don't pay the balance off at the end of the period. 3. Determine the credit limit Bank of America Business Rewards Card: The Bank of America Business Rewards Card is a business credit card that offers a variety of benefits, including cash back rewards, enhanced secunity features, and the ability to earn miles towards travel rewards. It comes with a 7% APR, but the interest only begins as soon as you make a purchase and does not apply if you pay the balance off in full by the due date each month. The credit limit depends on various factors, including your business's credit score, income, and other relevant information. However, the average credit limit for the Bank of America Business Rewards Card ranges from $10,000 to $25,000. In addition to the card's rewards program, the Bank of America Business Rewards Card offers a host of other benefits, including: - A O\% APR for the first 12 months on all purchases, which can help businesses manage cash flow during their startup phase. - The ability to earn up to 3.5% cash back on purchases in select categories, such as gas, travel, and dining. - The ability to earn up to 50,000 bonus mies (equal to $500 in travel rewards) after meeting certain spending thresholds. - Enhanced security features, including purchase protections against unauthovized charges and fraud, as well as an optional virtual account number. - The ability to easily manage your credit limit, spending, and balance through the Bank of America Business Rewards Card online account. Overall, the Bank of America Business Rewards Card can be a valuable tool for businesses looking to improve their cash flow, manage expenses, and eam rewards while taking advantage of enhanced security features and the ability to earn travel miles. It's important to carefully evaluate your business's needs and creditworthiness prior to applying for this or any other business credit card to ensure you're selecting the right product for your needs. Facility 1. Determine the number of square feet desired for office space and the square feet required for performing services if clients come to you. 2 . Investigate various areas around town that have space for rent. Find out what your facility will cost per square foot at your ideal location. Calculate the cost per month for your facility. Note: Rental only, do not consider purchasing a facility. 3. Do not include utilities, common area fees, or other common costs. 1. Determine the number of square feet desired for office space: 700 square feet 2. Determine the square feet required for performing services if clients come to us: 400 square feet 3. Investigate various areas around town that have space for rent. Find out what your facility will cost per square foot at your ideal location: - Ideal location: Downtown area - Cost per square foot: $25 per square foot 4. Calculate the cost per month for our faciilty: - 700 square feet for office space " $25 per square foot =$17,500 per year - 400 square feet for performing services for clients * $25 per square foot = $10,000 per year 5. Total cost per month for our facijity: $17,500 per year +$10,000 per year =$27,500 per year or $2,291.67 per month Note: This does not include utilities, common area fees, or other common costs, as those can vary widely depending on the location and the terms of the lease agreement. It's important to carefully negotiate these expenses and factor them into your overal budget when considering a rental facility for your business. Equipment 1. List all items needed for each of the following categories and state their costs. a. Functional office equipment - desks, computers, etc. (one-time purchase) b. Equipment to perform the service (one-time purchase) c. Variable expenses - items needed for service (recurring purchase) 2. Note: Assume purchase for all office and other required equipment. Do not consider a lease option. 1. Functional office equipment - desks, computers, etc. (one-time purchase): - Desks: \$200 each - Computer and monitor: \$1,000 each - Printerfcopier: \$1,500 - Office supplies (paper, pens, printer cartridges, etc.): \$1,000 2. Equipment to perform the service (one-time purchase): - Hair products and styling tools: $5,000 - Makeup products (cosmetics, palettes, brushes, etc.): $1,500 - Salon fumiture (chairs, styling stations, etc.): $2,500 - Studio equipment (lighting, cameras, etc.): \$3,000 - Salon software: \$1,000 3. Variable expenses - items needed for service (recurring purchase): - Hair products (shampoo, conditioner, cutting scissors, etc.): \$100 per month - Makeup products (mascara, lipstick, eyeshadow, etc.): $50 per month - Salon supplies (cleaners, towels, etc.): $150 per month - Hair care products (curlers, straighteners, blow dryers, etc.): $150 per month - Studio supplies (paper, ink cartridges, etc.): $100 per month "Assumed average values for each item" 1. List the one-time cost of purchasing all required equipment and supplies for the business 2. List the recurring monthly cost of variable expenses for supplies and services 3. Summarize the total one-time and monthly expenses 4. Analyze whether purchasing or leasing equipment is preferable 5. Provide recommendations on the most economically sound course of action 6. List any other significant business costs to consider in the future. 7. One-time cost of purchasing all required equipment and supplies for the business: - Functional office equipment $7,400 - Equipment to perform the service: $12,000 - Variable expenses. \$4,560 per year (\$380 per month) Total one-time expenses: $23,960 This includes one-time purchases of both functional office equipment and equipment to State the price you will charge your clients for your service 1. State anticipated labor costs \& time spent per client. 2. Investigate the price others charge for a similar service 3. State the profit desired. You do not need to calculate profit at this point. 4. State whether you will offer discounts - for larger orders, new. The following items will not be included in the final project. Business or other licenses Insurance of any type Additional cost for accepting credit cards as a form of payment Fringe Benefits (insurance - medical, dental, life; day-care) for employees 1. Charge a client $50 for a hair wash and cut, which takes approximately 30 minutes to complete. This includes the cost of the labor and materials needed to provide the service. 2. A comparable service (e.g. hair wash and cut) in a salon setting is typically priced at around $30$40 per service. 3. Our goal is to tum a 20-30\% profit on each service provided. We project to provide an average of 80 services per month at $50 per service, which generates $4,000 in revenue. After subtracting our one-time expenses of $23,960 and recurring monthly expenses of $3,840 for variable expenses, we are left with a projected profit of $2,320 per month. 4. We will offer discounts for larger orders, new or retuming clients, seniors, mivtary, and for any other special occasions or events. We will offer a 10% discount for purchases of 3 or more services, and a 15% discount for purchases of 5 or more services. For returning clients and seniors, we will offer a 5% discount, and for military personnel, we will offer a 10% discount as a show of appreciation for their service