Reading Margin of Safety Document and Using Jean's Jeans instructions and documents, complete the analysis of whether to make or buy your jeans:

use your own words, i will upvote!!!!

calculate and analyze these numbers, decide whether buy or make jeans.

Jean's Jeans Case - 2020 1. Review the financial projections and the 8 pages of questions. 2. On page 5, use the milestone point and make a recommendation if you will make or buy your products? 3. Be sure to access the cost to acquire equipment and the cost of labor/ show your analysis and its impact on ROI. Assumptions You are currently buying your jeans from other manufacturers Your analysis is for the same number of pairs bought You will need to hire more labor at minimum wage in Los Angeles with 40 hours per week, all taxes included. Material cost to make one pair of jeans is $3.00 per pair Equipment needed includes 2 sewing machines at $1000.00 each All other expenses remain the same as you have enough space in your current building New tariffs will add $2.00 per pair if you continue buying . . EEEEEEEE ... *** ........ -------- *** . . RE . ... RETETTELEREPETIT RE "H HHHHHH FERRER BERE BERBELEEEEE REVENUE Jan Feb Mar Apr May Jun July Aug. Sept Oct Nov Dec 1st Year Units sold Direct Style #1 #units sold 20 30 60 80 100 130 150 175 200 220 225 230 1620 $32.95 $659.00 $988.50 $1,977.00 $2,636.00 $3,295.00 $4,283.50 $4,942.50 $5,766.25 $6,590.00 $7,249.00 $7,413.75 $7,578.50 $53,379.00 Style #2 #units sold 18 40 60 80 100 120 130 140 160 173 190 220 1431 $29.95 $539.10 $1.198.00 $1,797.00 $2,396.00 $2,995.00 $3,594.00 $3,893.50 $4,193.00 $4,792.00 $5,181.35 $5,690.50 $6,589.00 $42,858.45 Style #3 #units sold 15 30 45 65 85 99 123 1431 160 170 198 221 1354 $24.95 $374.25 $748.50 $1,122.75 $1,621.75 $2,120.75 $2,470.05 $3,068.85 $3,567.85 $3,992.00 $4,241.50 $4,940.10 $5,513.95 $33,782.30 Style #4 #units sold 25 35 45 55 65 90 100 124 144 163 181 2007 1227 $22.95 $573.75 $803.25 $1,032.75 $1,262.25 $1,491.75 $2,065.50 $2,295.00 $2,845.80 $3,304.80 $3,740.85 $4,153.95 $4,590.00 $28,159.65 SUBTOTAL-Units 78 135 210 280 350 439 503 582 6643 726 794 871 5632 SUBTOTAL-$$ $2.146.10 $3,738.25 $5,929.50 $7,916.00 $9,902.50 $12,413.05 $14,199.85: S16,372.90 S18,678.80 $20,412.70 $22,198.30 $24,271.45 S158,179.40 Units sold wholesale Style #1 #units sold 40: 50 60 70 80 90 100 110 120 130 140 150 1140 $12.42 $496.80 $621.00 $745.20 $869.40 $993.60 $1,117.80 $1,242.00 $1,366.20 $1,490.40 $1,614.60 $1,738.80 $1,863.00 $14,158.80 Style #2 #units sold 40 50 60 70 80 90 100 110 120 130 140 150 1140 $11.95 $478.00 $597.50 $717.00 $836.50 $956.00 $1,075.50 $1,195.00 $1,314.50 $1,434.00 $1,553.50 $1,673.00 $1,792.50 $13,623.00 Style #3 #units sold 40 50 60 70 80 90 100 110 120 130 140 150 1140 $11.05 $442.00 $552.50 $663.00 $773,50 $884.00 $994.50 $1,105.00 $1,215.50 $1,326.00 $1,436.50 $1,547.00 $1,657.50 $12,597.00 Style #4 #units sold 40 50 60 70 80 90 100 110 120 130 140 150 1140 $9.75 $390.00 $487.50 $585.00 $682.50 $780.00 $877.50 $975.00 $1,072.50 $1,170.00 $1.267.50 $1,365.00 $1,462.50 $11,115.00 SUBTOTAL Units 160 200 240 280 320 360 400 440 480 520 560 600 4560 SUBTOTAL $$ $1,806.80 $2,258.50 $2,710.20 $3,161.90 $3,613.60 $4,065.30 $4,517.00 $4,968.70 $5,420.40 $5,872.10 $6,323.80 $6,775.50 $51,493.80 TOTAL Units Sold 238 335 450 560 670 799 903 1,022 1,144 1.246 1.354 1,4711 10,192 TOTAL REVENUE $3,952.90 $5,996.75 $8,639.70 $11,077.90 $13,516.10 $16,478.35 $18,716.85 $21,341.60 $24,099.20 $26,284.80 $28,522.10 $31,046.95 $209,673.20 COGS $5.25 per pair S1,249.50 $1,758.75 $2,362.50 $2,940.00 $3,517.50 $4,194.75 $4,740.75 $5,365.50 $6,006.00 $6,541.50 $7.108.50 $7,722.75 $53,508.00 GROSS PROFIT $2.703.40 $4.238.00 $6,277.20 $8,137.90 $9,998.60 $12,283.60 $13,976.10 $15,976.10S18,093.20 $19,743.30 $21,413.60 $23,324.20 $156,165.20 GROSS MARGIN 68.39% 70.67% 72.66% 73.46% 73.98% 74.54% 74.67% 74.86% 75.08% 75.11% 75.08% 75.13% 74.48% EXPENSES $13,160 $11,660 $13,960 $14,210 $11,460 $12,960 $13,210 $11,960 $12,960 $14,210 $11,460 $12,960 $154,170 EBITDA (S10,456.60) ($7,422.00) ($7,682.80) ($6,072.10) ($1,461.40) ($676.40) $766.10 $4,016.10 $5,133.20 $5,533.30 $9,953.60 $10,364.20 $1,995.20 Taxes - 28% S252.84 $286.16 $320.32 $348.88 $379.12 $411.88 $2,853.76 NET PROFIT (S10,456.60) ($7,422.00) ($7,682.80) ($6,072.10) ($1,461.40) ($676.40) $513.26 $3,729.94 $4,812.88 $5,184.42 $9,574.48 $9.952.32 (5858.56) Accum loss ($10,456.60 ($17,878.60 ($25,561.40 ($31,633.50 $33,094.90 $33,771.30) . EEEEE ------ ---- HELLES ESSERE 11 TEEEEE EEEEEEEEEEEEE January February March April May June July August September October November December Annual Expense $9,270 $111,440 $2,000 $2.000 $2,000 $24,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2.000 $2,000 $4,000 $4,000 $4,000 $1,000 $200 $1,000 $200 $4,000 $1,000 $200 $1,000 $200 $4,000 $1,000 $200 $4,000 $1,000 $200 $4,000 $1,000 $200 $4,000 $1,000 $200 $4,000 $1,000 $200 $4,000 $1,000 $200 $4,000 $1,000 $200 $4.000 $1,000 . $200 .... $48,000 $12,000 $2,400 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $600 $600 $600 $50 $780 $260 $880 $200 $780 $260 $880 $780 $260 $880 $780 $260 $880 $780 $260 $880 $780 $260 $880 $780 $260 $880 $780 $260 $880 $780 $260 $880 $780 $260 $880 $780 $260 $880 $780 $260 $880 OTHER HER $9,360 $3,120 $10,560 $200 $42.730 $2,400 $1,440 $2,400 $600 $200 $200 $120 $200 $50 $200 $120 $200 $50 $200 $120 $200 $50 $200 $120 $200 $50 $200 $120 $200 $50 $200 $120 $200 $50 $200 $120 $200 $50 $200 $120 $200 $50 $200 $120 $200 $200 $120 $200 $50 $200 $120 $200 $50 $120 $200 BE $50 $50 EXPENSES Expense Catagory FIXED Rent Salaries Self Secretary Bookkeeper-Parttime Insurance Company Employee Liability Taxes Social security pmts @15% Medicare deduction @5% FICA for Self @ 22% Fees/Lic. VARIABLE Utilities Telephone-office Cellphone(s) Internet Office Supplies Computer expenses Printer cartridges Paper Goods Co Stationarylenvel Misc. Postage/Mailing. GMS Bus. Travel Hotel Meals Airline Car rental Marketing Expenses Printing Mkting Pieces Give A-ways" Trade Shows Booth Rental Registration Set-up Entertainment for Shows Meals Gifts Misc Demo & Inventory General Misc Expenses TOTAL EXPENSES $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $240 $240 $240 $240 $240 $240 B. $20 $20 $400 $200 $600 $300 $400 $200 $600 $300 $400 $200 $600 $300 $400 $200 $600 $300 $400 $200 $600 $300 $400 $200 $600 $300 $400 $200 $600 $300 $400 $200 $600 $300 $3,200 $1,600 $4,800 $2,400 $1,000 $500 $1,500 $450 $200 $250 BRE $500 $200 $100 $500 $200 $100 $1,000 $400 $200 ---- $250 $100 $100 $1,000 $500 $14,210 $1,000 $500 $11,660 $1,000 $500 $13,160 $1,000 $500 $13,960 $1,000 $500 $11,460 $1,000 $500 $12,960 $1,000 $500 $13,210 $1,000 $500 $11,960 $250 $100 $100 $1,000 $500 $14,210 $1,000 $500 $12,960 $500 $200 $200 $12,000 $6,000 $154,170 $1,000 $500 $11,460 $1,000 $500 $12,960 Jean's Jeans Case - 2020 1. Review the financial projections and the 8 pages of questions. 2. On page 5, use the milestone point and make a recommendation if you will make or buy your products? 3. Be sure to access the cost to acquire equipment and the cost of labor/ show your analysis and its impact on ROI. Assumptions You are currently buying your jeans from other manufacturers Your analysis is for the same number of pairs bought You will need to hire more labor at minimum wage in Los Angeles with 40 hours per week, all taxes included. Material cost to make one pair of jeans is $3.00 per pair Equipment needed includes 2 sewing machines at $1000.00 each All other expenses remain the same as you have enough space in your current building New tariffs will add $2.00 per pair if you continue buying . . EEEEEEEE ... *** ........ -------- *** . . RE . ... RETETTELEREPETIT RE "H HHHHHH FERRER BERE BERBELEEEEE REVENUE Jan Feb Mar Apr May Jun July Aug. Sept Oct Nov Dec 1st Year Units sold Direct Style #1 #units sold 20 30 60 80 100 130 150 175 200 220 225 230 1620 $32.95 $659.00 $988.50 $1,977.00 $2,636.00 $3,295.00 $4,283.50 $4,942.50 $5,766.25 $6,590.00 $7,249.00 $7,413.75 $7,578.50 $53,379.00 Style #2 #units sold 18 40 60 80 100 120 130 140 160 173 190 220 1431 $29.95 $539.10 $1.198.00 $1,797.00 $2,396.00 $2,995.00 $3,594.00 $3,893.50 $4,193.00 $4,792.00 $5,181.35 $5,690.50 $6,589.00 $42,858.45 Style #3 #units sold 15 30 45 65 85 99 123 1431 160 170 198 221 1354 $24.95 $374.25 $748.50 $1,122.75 $1,621.75 $2,120.75 $2,470.05 $3,068.85 $3,567.85 $3,992.00 $4,241.50 $4,940.10 $5,513.95 $33,782.30 Style #4 #units sold 25 35 45 55 65 90 100 124 144 163 181 2007 1227 $22.95 $573.75 $803.25 $1,032.75 $1,262.25 $1,491.75 $2,065.50 $2,295.00 $2,845.80 $3,304.80 $3,740.85 $4,153.95 $4,590.00 $28,159.65 SUBTOTAL-Units 78 135 210 280 350 439 503 582 6643 726 794 871 5632 SUBTOTAL-$$ $2.146.10 $3,738.25 $5,929.50 $7,916.00 $9,902.50 $12,413.05 $14,199.85: S16,372.90 S18,678.80 $20,412.70 $22,198.30 $24,271.45 S158,179.40 Units sold wholesale Style #1 #units sold 40: 50 60 70 80 90 100 110 120 130 140 150 1140 $12.42 $496.80 $621.00 $745.20 $869.40 $993.60 $1,117.80 $1,242.00 $1,366.20 $1,490.40 $1,614.60 $1,738.80 $1,863.00 $14,158.80 Style #2 #units sold 40 50 60 70 80 90 100 110 120 130 140 150 1140 $11.95 $478.00 $597.50 $717.00 $836.50 $956.00 $1,075.50 $1,195.00 $1,314.50 $1,434.00 $1,553.50 $1,673.00 $1,792.50 $13,623.00 Style #3 #units sold 40 50 60 70 80 90 100 110 120 130 140 150 1140 $11.05 $442.00 $552.50 $663.00 $773,50 $884.00 $994.50 $1,105.00 $1,215.50 $1,326.00 $1,436.50 $1,547.00 $1,657.50 $12,597.00 Style #4 #units sold 40 50 60 70 80 90 100 110 120 130 140 150 1140 $9.75 $390.00 $487.50 $585.00 $682.50 $780.00 $877.50 $975.00 $1,072.50 $1,170.00 $1.267.50 $1,365.00 $1,462.50 $11,115.00 SUBTOTAL Units 160 200 240 280 320 360 400 440 480 520 560 600 4560 SUBTOTAL $$ $1,806.80 $2,258.50 $2,710.20 $3,161.90 $3,613.60 $4,065.30 $4,517.00 $4,968.70 $5,420.40 $5,872.10 $6,323.80 $6,775.50 $51,493.80 TOTAL Units Sold 238 335 450 560 670 799 903 1,022 1,144 1.246 1.354 1,4711 10,192 TOTAL REVENUE $3,952.90 $5,996.75 $8,639.70 $11,077.90 $13,516.10 $16,478.35 $18,716.85 $21,341.60 $24,099.20 $26,284.80 $28,522.10 $31,046.95 $209,673.20 COGS $5.25 per pair S1,249.50 $1,758.75 $2,362.50 $2,940.00 $3,517.50 $4,194.75 $4,740.75 $5,365.50 $6,006.00 $6,541.50 $7.108.50 $7,722.75 $53,508.00 GROSS PROFIT $2.703.40 $4.238.00 $6,277.20 $8,137.90 $9,998.60 $12,283.60 $13,976.10 $15,976.10S18,093.20 $19,743.30 $21,413.60 $23,324.20 $156,165.20 GROSS MARGIN 68.39% 70.67% 72.66% 73.46% 73.98% 74.54% 74.67% 74.86% 75.08% 75.11% 75.08% 75.13% 74.48% EXPENSES $13,160 $11,660 $13,960 $14,210 $11,460 $12,960 $13,210 $11,960 $12,960 $14,210 $11,460 $12,960 $154,170 EBITDA (S10,456.60) ($7,422.00) ($7,682.80) ($6,072.10) ($1,461.40) ($676.40) $766.10 $4,016.10 $5,133.20 $5,533.30 $9,953.60 $10,364.20 $1,995.20 Taxes - 28% S252.84 $286.16 $320.32 $348.88 $379.12 $411.88 $2,853.76 NET PROFIT (S10,456.60) ($7,422.00) ($7,682.80) ($6,072.10) ($1,461.40) ($676.40) $513.26 $3,729.94 $4,812.88 $5,184.42 $9,574.48 $9.952.32 (5858.56) Accum loss ($10,456.60 ($17,878.60 ($25,561.40 ($31,633.50 $33,094.90 $33,771.30) . EEEEE ------ ---- HELLES ESSERE 11 TEEEEE EEEEEEEEEEEEE January February March April May June July August September October November December Annual Expense $9,270 $111,440 $2,000 $2.000 $2,000 $24,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2.000 $2,000 $4,000 $4,000 $4,000 $1,000 $200 $1,000 $200 $4,000 $1,000 $200 $1,000 $200 $4,000 $1,000 $200 $4,000 $1,000 $200 $4,000 $1,000 $200 $4,000 $1,000 $200 $4,000 $1,000 $200 $4,000 $1,000 $200 $4,000 $1,000 $200 $4.000 $1,000 . $200 .... $48,000 $12,000 $2,400 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $600 $600 $600 $50 $780 $260 $880 $200 $780 $260 $880 $780 $260 $880 $780 $260 $880 $780 $260 $880 $780 $260 $880 $780 $260 $880 $780 $260 $880 $780 $260 $880 $780 $260 $880 $780 $260 $880 $780 $260 $880 OTHER HER $9,360 $3,120 $10,560 $200 $42.730 $2,400 $1,440 $2,400 $600 $200 $200 $120 $200 $50 $200 $120 $200 $50 $200 $120 $200 $50 $200 $120 $200 $50 $200 $120 $200 $50 $200 $120 $200 $50 $200 $120 $200 $50 $200 $120 $200 $50 $200 $120 $200 $200 $120 $200 $50 $200 $120 $200 $50 $120 $200 BE $50 $50 EXPENSES Expense Catagory FIXED Rent Salaries Self Secretary Bookkeeper-Parttime Insurance Company Employee Liability Taxes Social security pmts @15% Medicare deduction @5% FICA for Self @ 22% Fees/Lic. VARIABLE Utilities Telephone-office Cellphone(s) Internet Office Supplies Computer expenses Printer cartridges Paper Goods Co Stationarylenvel Misc. Postage/Mailing. GMS Bus. Travel Hotel Meals Airline Car rental Marketing Expenses Printing Mkting Pieces Give A-ways" Trade Shows Booth Rental Registration Set-up Entertainment for Shows Meals Gifts Misc Demo & Inventory General Misc Expenses TOTAL EXPENSES $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $240 $240 $240 $240 $240 $240 B. $20 $20 $400 $200 $600 $300 $400 $200 $600 $300 $400 $200 $600 $300 $400 $200 $600 $300 $400 $200 $600 $300 $400 $200 $600 $300 $400 $200 $600 $300 $400 $200 $600 $300 $3,200 $1,600 $4,800 $2,400 $1,000 $500 $1,500 $450 $200 $250 BRE $500 $200 $100 $500 $200 $100 $1,000 $400 $200 ---- $250 $100 $100 $1,000 $500 $14,210 $1,000 $500 $11,660 $1,000 $500 $13,160 $1,000 $500 $13,960 $1,000 $500 $11,460 $1,000 $500 $12,960 $1,000 $500 $13,210 $1,000 $500 $11,960 $250 $100 $100 $1,000 $500 $14,210 $1,000 $500 $12,960 $500 $200 $200 $12,000 $6,000 $154,170 $1,000 $500 $11,460 $1,000 $500 $12,960