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You plan to open a small business for manufacturing pet collars, leashes, and harnesses. You have found a workshop space you can use for sewing your products. After some research and planning, you have estimates for the various operating costs for your business.

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.

Salary and Hiring Data

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

Other Costs

Rent: $750 per month; allocate based on square footage

High-tensile strength nylon webbing?$12 per yard of webbing

o3 collars per yard of webbing

o2 leashes per yard of webbing

o2 harnesses per yard of webbing

Polyesterylon ribbons?$9 per yard of ribbon

o3 collars per yard of webbing

o2 leashes per yard of webbing

o2 harnesses per yard of webbing

Buckles made of cast hardware?$0.50 per buckle

o4 buckles used per collar

o3 buckles used per leash

o8 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

AutoSave On ACC 202 Project Workbook wk2 - Saved Search Donte Johnson DJ X File Home Insert Draw Page Layout Formulas Data Review View Share Comments D61 X Y B C D E F G | H | | | J | K | L | M | N | O P Q R S T | U V W X Y Z AA | AB |AC |AD AE Milestone One - Variable and Fixed Costs 5 Collars 7 Item ariable Cost/ltem Item Fixed Costs 9 High-tensile strength nylon webbi $ 4.0 Collar maker's salary (monthly] 2.773.33 10 Polyesternylon ribbons 3.00 Depreciation on sewing machines 55.00 11 Buckles made of cast hardware 0.13 Rent 250,00 12 Price tags 83.33 Utilities and insurance 200.00 Scissors, thread, and cording 400.00 Loan payment 183.33 Salary to self 16:6.67 Total Variable Costs per Cc $ 90.46 Total Fixed Costs $ 4,028.33 22 23 Leashes 25 Item ariable Cost/ltem Item Fixed Costs 27 High-tensile strength nylon webbi 6.00 Leash maker's salary [ monthly) $ 2,773.33 28 Polyesternylon ribbons 4.50 Depreciation on sewing machines $ 55.00 29 Buckles made of cast hardware 0.16 Rent 250.00 30 Price tags 33.33 Utilities and insurance 200.00 31 Scissors, thread, and cording 400.00 32 Loan payment 183.33 33 Salary to self 167.67 36 38 Total Variable Costs per Le $ 94.00 Total Fixed Costs $ 4.028.33 39 41 42 Harnesses 44 Item ariable Costltem Item Fixed Costs 46 High-tensile strength nylon webbi 6.00 Harness maker's salary $ 2.946.60 47 Polyesternylon ribbons 4.50 Depreciation on sewing machines 55.00 48 Buckles made of cast hardware 0.06 Rent 50.00 49 Price tags 33.33 Utilities and insurance 200.00 50 Scissors, thread, and cording 400.00 51 Loan 183.33 52 Salary to self 166.67 54 55 57 Total Variable Costs per He $ 94.43 Total Fixed Costs $ 4,201.60 58 60 61 62 63 Cost Classification Variable and Fixed Costs Contribution Margin Analysis Break-Even Analysis COGS Income Statement Variances + Ready - + 64% Type here to search O w 70OF Clear 8:16 PM 9/11/2021