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ACC 202 Milestone One: Operational Costs Data Appendix You plan to open a small business for manufacturing pet collars, 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 various operating costs for your business. The 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 start-up costs, 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 first year of $500 per month; remember to divide evenly among the services. Salary and Hiring Data One collar maker, who will be paid $16.00 per hour and work 40 hours per week One leash maker, who will be paid $16,00 per hour and work 40 hours per week One harness maker, who will be paid $17.00 per hour and work 40 hours per week One receptionist, who will be paid $15.00 per hour and work 30 hours per week . Other Costs Rent: $750 per month; allocate based on square footage High-tensile strength nylon webbing --$12 per yard of webbing o 3 collars per yard of webbing 2 leashes per yard of webbing 2 harnesses per yard of webbing Polyesterylon ribbons-S9 per yard of ribbon 3 collars per yard of webbing 2 leashes per yard of webbing 2 harnesses per yard of webbing Buckles made of cast hardware--50.50 per buckle 4 buckles used per collar 3 buckles used per leash B buckles used per harness . o . . 3 industrial sewing machines at $3,300 each for a total of $9,900; depreciation is $165 per month (5- year life) Utilities and insurance: $600 per month; allocate based on square footage Scissors, thread, cording: $1,200 Price tags: $250 for 2,500 ($0.10 each) Office supplies: $2,400 or $200 per month Other business equipment: $2,000 Loan payment of $550 per month Salary drawn of $500 per month . . . Milestone One - Variable and Fixed Costs Collars Item Variable Cost/Item High-tensile strength nylon webbing $ 4.00 Polyesterylon ribbons S 3.00 Buckles made of cast hardware $ 2.00 S 0.10 Fixed Costs 2773,33 $ Price tags Item Collar maker's salary (monthly) Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan payment Salary to sell . 183.33 266.67 $ Total Variable Costs per Collar $ 9.10 Total Fixed Costs Variable Cost/Item Item Fixed Costs 23 Leashes 25 Item 27 High-tensile strength nylon webbing 28 Polyesterylon ribbons 29 Buckles made of cast hardware 30 Price tags 31 32 Leash maker's salary (monthly Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan payment Salary to sell 33 34 35 36 Total Variable Costs per Leash 38 39 Total Fixed Costs Variable Cost/Item Item Fixed Costs 1 12 Harnesses 44 Item 46 High-tensile strength nylon webbing 47 Polyesterylon ribbons 48 Buckles made of cast hardware 49 Price tags 50 51 52 53 54 55 Harness maker's salary Depreciation on sewing machines Rent Utilities and Insurance Scissors, thread, and cording Loan Salary to sell Total Variable Costs per Harness 57 5B Total Fixed Costs En