Question: The Safe Splitter Making splitting firewood while camping safe and easy. We're going into business together fabricating firewood splitting fixtures. Our Business requires the following
The Safe Splitter "Making splitting firewood while camping safe and easy." We're going into business together fabricating firewood splitting fixtures. Our Business requires the following to get started: One worker produces 8 units in one hour. Each work day is 8 bours long Employees earn $22 an hour. Start-up costs will be covered by loans from friends or family and will not exceed a period of 24 months. All loans will be paid monthly. Every month you will see a 10% increase in sales.
Deliverables (in Excel): Determine our breakeven point in terms of units. Determine when we will break even in terms of months in business. Determine a sales price per unit. Produce a line graph showing the development of the business 6 months past break even.
Start-up Costs Item Cost Fabrication Table 1100 Mig Welder 725 Plasma Cutter 850 Air Compressor 900 Bench Grinder 125 Angle Grinder 50 Metal Saw 700 Misc. tools $1000 Variable Costs Material Cost Steel $25 per kit Welding Wire $ 44 per25 kits AR/CO2 gas mix $80 per 60 kits Paint $20 per 24 kits Electricity $3 per kit Fixed Costs Rent $1000/month Salaries $2400/month Electricity $400/month Social Media services $400/month
Assume sales price of $70 and first month sales 50 units
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