Variable and Fixed Costs. Complete the Variable and Fixed Costs tab of your workbook. (Note: Some costs are provided for you. Fill in only the missing costs.) Determine your total variable cost per unit and the total fixed costs for each product. Show your work using calculations to the side of the table or using appropriate formulas in the table.

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. 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 Rent: $750 per month; allocate based on square footag strength nylon webbing$12 per yard of webbing 3 collars per yard of webbing 2 leashes per yard of webbing 2 harnesses per yard of webbing Polyesterylon ribbons$9 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$0.50 per buckle 4 buckles used per collar 3 buckles used per leash 8 buckles used per harness 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

B C D E 1 2 Milestone One - Variable and Fixed Costs 3 4 5 Collars 7 Item 9 High-tensile strength nylon webbing 10 Polyesterylon ribbons 11 Buckles made of cast hardware 12 Price tags 13 14 15 16 17 Total Variable Costs per Collar Variable Cost/Item $ 4.00 $ 3.00 0.12 0.10 Item Collar maker's salary (monthly) Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan payment Salary to self $ Fixed Costs 2,773.33 165.00 1.50 0.40 1,200.00 183.33 166.67 $ $ $ S S $ S 19 $7.22 Total Fixed Costs 20 22 23 Leashes 25 Item Variable Cost/Item Item Fixed Costs 27 High-tensile strength nylon webbing 28 Polyesterylon ribbons 29 Buckles made of cast hardware 30 Price tags Leash maker's salary (monthly) Depreciation on sewing machines Rent Utilities and insurance Contributions Mali + ecificaties Nilindro K19 A B D E 20 22 23 Leashes Variable Cost/Item Fixed Costs 25 Item 27 High-tensile strength nylon webbing 28 Polyesterylon ribbons 29 Buckles made of cast hardware 30 Price tags 31 32 33 34 35 36 38 Total Variable costs per Leash 39 41 42 Harnesses Item Leash maker's salary (monthly) Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan payment Salary to self Total Fixed Costs 44 Item Variable Cost/Item Item Fixed Costs 46 High-tensile strength nylon webbing 47 Polyesterylon ribbons 48 Buckles made of cast hardware 49 Price tags 50 Cost Classification Harness maker's salary Depreciation on sewing machines Rent Utilities and insurance Scissors thread and cording Contribution Margin Analysis Variable and Fixed Costs Break-Even Analysis K19 fax A B C E F 31 32 33 34 35 36 Scissors, thread, and cording Loan payment Salary to self 38 Total Variable costs per Leash Total Fixed Costs $ 39 41 42 Harnesses 44 Item Variable Cost/Item Item Fixed Costs 46 High-tensile strength nylon webbing 47 Polyesterylon ribbons 48 Buckles made of cast hardware 49 Price tags 50 51 52 53 54 55 57 Total Variable Costs per Harness 58 Harness maker's salary Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan Salary to self Total Fixed Costs 60 61 Cost Classification Variable and Fixed Costs Contribution Margin Analysis Break-Even Analysis B C D E 1 2 Milestone One - Variable and Fixed Costs 3 4 5 Collars 7 Item 9 High-tensile strength nylon webbing 10 Polyesterylon ribbons 11 Buckles made of cast hardware 12 Price tags 13 14 15 16 17 Total Variable Costs per Collar Variable Cost/Item $ 4.00 $ 3.00 0.12 0.10 Item Collar maker's salary (monthly) Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan payment Salary to self $ Fixed Costs 2,773.33 165.00 1.50 0.40 1,200.00 183.33 166.67 $ $ $ S S $ S 19 $7.22 Total Fixed Costs 20 22 23 Leashes 25 Item Variable Cost/Item Item Fixed Costs 27 High-tensile strength nylon webbing 28 Polyesterylon ribbons 29 Buckles made of cast hardware 30 Price tags Leash maker's salary (monthly) Depreciation on sewing machines Rent Utilities and insurance Contributions Mali + ecificaties Nilindro K19 A B D E 20 22 23 Leashes Variable Cost/Item Fixed Costs 25 Item 27 High-tensile strength nylon webbing 28 Polyesterylon ribbons 29 Buckles made of cast hardware 30 Price tags 31 32 33 34 35 36 38 Total Variable costs per Leash 39 41 42 Harnesses Item Leash maker's salary (monthly) Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan payment Salary to self Total Fixed Costs 44 Item Variable Cost/Item Item Fixed Costs 46 High-tensile strength nylon webbing 47 Polyesterylon ribbons 48 Buckles made of cast hardware 49 Price tags 50 Cost Classification Harness maker's salary Depreciation on sewing machines Rent Utilities and insurance Scissors thread and cording Contribution Margin Analysis Variable and Fixed Costs Break-Even Analysis K19 fax A B C E F 31 32 33 34 35 36 Scissors, thread, and cording Loan payment Salary to self 38 Total Variable costs per Leash Total Fixed Costs $ 39 41 42 Harnesses 44 Item Variable Cost/Item Item Fixed Costs 46 High-tensile strength nylon webbing 47 Polyesterylon ribbons 48 Buckles made of cast hardware 49 Price tags 50 51 52 53 54 55 57 Total Variable Costs per Harness 58 Harness maker's salary Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan Salary to self Total Fixed Costs 60 61 Cost Classification Variable and Fixed Costs Contribution Margin Analysis Break-Even Analysis