In 2021, Stella sold 40 pairs of swimwear - she didn't keep track of whether it was bikinis or swimsuits for men. In 2020, she sold 18 bikinis as she was not yet making men's swimwear. Stella spent three weeks designing and experimenting with different fabrics, cuts, and patterns. Once perfected, she started to build up her inventory. Uncertain of how to begin selling her products, she noticed her local Farmer's Market that used to be held in the town square on Saturdays had been moved online. She reached out to the Farmer's Market and they agreed to host her store virtually for 15% commission on each piece she sold. Having an avenue to sell her product , Stella started to produce enough inventory to post and sell through the Farmer's Market website. She didn't read all the terms, but she believes there was a line in the agreement that said she is not able to sell her products on any other platform online. The contract will last until December 31, 2022. Not knowing the full cost of her materials, time and overhead, Stella assumed a retail price of $59 per piece was a good starting point. During 2021 and 2022, Stella leisurely made items whenever she had time or got bored. She worked from her apartment (rent of $1,350 per month). She was able to find cheap fabric that sold from $3.50 to $8.75 per yard. Each bikini took about to of a yard of fabric to create. Men's swimsuits took about 1 to 1.5 yards of fabric. Stella's goal is to minimize waste. Using leftover fabric of other swimsuits, she sews patches together to make new swimsuits. On average, the elastic, thread, and lining cost, in total, $0.75 per swimsuit. Stella has heard of the concept of opportunity cost, but needs help with measuring and allocating the cost of her own time. She also wants advice on how to price her swimwear so that she can, at minimum, break even. Stella's Swimsuits While working out of her home with her mother's old machine, Stella is wondering whether it is feasible to open a store where she sells in the front and creates products in the back. Her home is too small to store all the inventory, raw materials, and house her work station. If she opens a store, Stella is thinking of hiring an additional seamstress to help with production and a sales representative to help her with the retail side. Coincidentally, there is a retail space close to her that has become vacant. Rent starts at $3,000 per month and she will have to sign a three-year lease. Stella is unsure how much she will have to pay the seamstress and sales representative. Also, she wants some broad advice on HR policy. Stella is tired of her sewing machine continually breaking down. The threading mechanism takes her significant time to fix every time and sometimes causes tears in the fabric so she has to start over. The current machine cost her mother $575 many years ago. A local repair shops says the machine can be maintained for $125 per year, which will allow it to be used heavily for three more years. A replacement sewing machine will make things more efficient and Stella will be able to make an additional 3 swimsuits per hour. A new industrial sewing machine costs $1,400 and Stella is unsure of how she would depreciate it. If she opens the store, she will need two sewing machines. Stella's friend Tony is encouraging her to start marketing and selling through social media. He insists that she should start her own website. Along the way, Tony would assist with designing and developing the website at a cost of $35 per hour for the initial design (anticipated workload of 100 hours), followed by a monthly fee of $120 for maintenance and for collecting orders. Alternatively, Tony is willing to become a partner of her business and work for free for a 40% share of the company. Stella wants your advice on whether this business partnership is a good idea or not.

Advise Stella on her career path and the outlook of her proposed business. Produce a business report, including comprehensive analysis, recommendations, and any questions you may need to ask Stella.