Seena is debating whether to continue working out of a makeshift office/store in her basement as opposed to a store in the city. Her home expenses total $1,000 a month and she estimates her basement takes 40% of the homes available space. A store would cost $2,000 per month, but grow sales by 75% (80% of the sales would now be in person). If she decides to go in this direction, Seena plans to hire a part-time helper who would produce 1,000 rings per year. Seena estimates that this worker would work 250 hours a year at a rate of $16 per hour. Seena is wondering about the cost-benefit analysis of going in this direction. She is also wondering how she might evaluate the helpers performance once she has actual sales and expense numbers. Also, she wants some insight on the best ways to discuss performance with employees.

Sheena is wondering if she should also pay the helper a sales commission of $1 per ring sold. This would allow Sheena to focus more on production. In addition to producing 1,500 rings a year by herself, Sheena is wondering if she can gather and prepare stones for cheaper. Assuming 100 stones per month, she estimates the added fuel expense for this approach would total $150 per month (Sheena isnt sure if other vehicle costs like insurance should be included). Materials to prepare the stones for mounting would total $100 a month. Sheena is wondering if she should consider other factors like time spent- she expects to spend 6 hours a month gathering, cleaning, and coating stones. She is wondering about the potential pros and cons of producing her own stones, outside of projected cash flows.

Please share with calculation part.