Scenario details

Jacket Frenzy is a small clothing manufacturer, specializing in creating custom, one-of-a-kind jackets. They exclusively sell their product through their online store. Jacket Frenzy is run by a team of three staff members: April, Beatrice, and Claudia. April and Beatrice work together to manufacture jackets. Claudia manages orders, sales and delivery.

Team hours Most of the time, team members work the following shifts:

April works 7.5 hours on Mondays, Tuesdays and Wednesdays;

Beatrice works 7.5 hours on Thursdays and Fridays; and

Claudia works 4.5 hours every weekday.

Additionally, April and Claudia share responsibility for managing the Jacket Frenzy social media presence, with April working one extra hour in the evenings on Monday, Tuesday and Wednesday, and Claudia doing the same on Thursday, Friday and Saturday.

Costs

April and Beatrice, as skilled manufacturing staff, cost $26 per hour to employ.

Claudia, a part-time employee, costs $24 per hour to employ.

All staff are also entitled to four weeks of paid annual leave, during which a casual replacement is required at a cost of $39 per hour.

Fixed costs such as rent and insurance are $9100 per year, and utilities costs are $260 per month.

Task 1 - Costs of operating the business

Using Excel, create a spreadsheet called operating_costs.xlsx that calculates the projected annual outgoing costs of running Jacket Frenzy.

Your spreadsheet should be configured such that the working hours, hourly rates, and fixed and utility costs can be varied easily.

Document your findings in your ePortfolio page (approximately 100 words).