Sam Snow has invented a new design for roof rakes (for snow). Albert believes the potential for his new product is huge and has decided to leave his $5,500 per month job as a bank manager to produce and sell the roof rakes through his new company, EasySlide. Albert will rent factory space that will be used to produce the new product. The rent for this factory space will be $2,000 per month and he will rent metal fabrication equipment for $1,100 per month.

The cost of materials for each roof rake will be $120.00. Production employees will be hired to assemble the roof rakes. They will be paid $4.50 for each completed unit. Albert will rent a small suite in an office building for use as his sales office. The office rent will be $800 per month. An important part of his strategy is to keep costs low. This is accomplished by hiring a part-time purchasing agent to search for low-cost sources of materials (steel and clips) used in the production of roof rakes. This person will be paid $1,200 per month. In addition, Albert has added voice messaging to his business cellphone plan to get after-hours messages from customers. The addition of voice messaging will increase Albert's monthly cellphone bill by $5.

Albert has always used a money market mutual fund to invest surplus cash, in which he is earning an average of $3,100 per year. The business requires an up-front cash investment by Albert, who will use the balance in his high-interest savings account to address this need. To promote his new product, he will pay for a 1-minute commercial on a radio station to be played over 4 months. This radio commercial will cost $300 per month to air. He spent $600 to help to create the radio commercial. In addition, he will pay a sales commission of $2.50 for each rake sold. No salary will be taken by Albert in the foreseeable future.

Required:

1. Create a table with columns labeled with appropriate cost classifications (see below). Include names of all the relevant costs in the Description column and use an X to indicate the appropriate cost classification (note: most cost items belong to more than one category).

		Product Cost	Period
Description/ ($amount)	Variable Cost	Fixed Cost	Direct Materials	Direct Labour	Manufacturing Overhead	Sell. & Admin.	Opportunity Cost	Sunk Cost