Question: Class 3 Packet Semester Case - My Assistant As you know from your pre-class work, W.T. needs to determine how much he'll charge the customers
Class 3 Packet Semester Case - My Assistant As you know from your pre-class work, W.T. needs to determine how much he'll charge the customers of My Assistant. Keep in mind that he'll need to (1) cover costs and (2) earn a proht so he can be paid. Part 1 We've already done quite a bit of work on projected costs for My Assistant, so pull out your notes from Class #2. To recap, W.T.'s planning on the following: Newspaper ad Social media manager Payment collection Gas $120 per month $100 per month: $1 per job scheduled $0.75 per job $4.00 per job Considering his analysis of similar services and to keep things simple, W.T. plans to price all jobs the same and charge $15 per job. Because of this flat rate, he anticipates he'll likely need to create different types of "jobs". For example, purchasing a list of items at the grocery store would be one job, while a bundle of 2-3 small errands such as picking up dry cleaning and prescriptions, might be considered one job. We'll deal with those details later. For now, assume that all jobs are priced at $15 each and all have the associated variable expenses listed above. Because this will be a new business, W.T. Knows business will likely be slow at the beginning. Complete the following table assuming W.T. completes 10 jobs in a single month. Per Job Item Computations Total (10 jobs) Sales GA A $ $ It Less: Variable Cost Contribution Margin Less: Fixed Cost Gross Margin
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