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Milestone One - Variable and Fixed Costs 22 23 Leashes 25 Item 27 High-tensile strength nylon webbing 28 Polyesterylon ribbons 29 Buckles made of cast hardware 30 Price tags 31. Variable Cost/1tem \begin{tabular}{ll} $ & 6.00 \\ $ & 4.50 \\ $ & 1.50 \\ $ & 0.10 \\ \hline \end{tabular} Item Leash maker's salary (monthly) Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan payment Salary to self Fixed Costs $$$$$$$2,733.3355.00250.00200.00400.00183.83166.67 Total Fixed Costs \begin{tabular}{ll} $4,028.33 \\ \hline \end{tabular} Fixed Costs Item Harness maker's salary Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Cost Classification Variable and Fixed Costs Contribution Margin Analysis 2,946.67 55.00 250.00 20000 400.00 2) Tractensbility inveitigate Break-Even Analysis Total Variable Costs per Leash Milestone Two - Contribution Margin Analysis 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 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 ribbon 2 leashes per yard of ribbon 2 harnesses per yard of ribbon - 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, zero salvage value) snhu ACC 202 Milestone One: Operational Costs Data Appendix 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 - 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 ribbon - 2 leashes per yard of ribbon - 2 harnesses per yard of ribbon - 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, zero salvage value) Milestone One - Variable and Fixed Costs 22 23 Leashes 25 Item 27 High-tensile strength nylon webbing 28 Polyesterylon ribbons 29 Buckles made of cast hardware 30 Price tags 31. Variable Cost/1tem \begin{tabular}{ll} $ & 6.00 \\ $ & 4.50 \\ $ & 1.50 \\ $ & 0.10 \\ \hline \end{tabular} Item Leash maker's salary (monthly) Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan payment Salary to self Fixed Costs $$$$$$$2,733.3355.00250.00200.00400.00183.83166.67 Total Fixed Costs \begin{tabular}{ll} $4,028.33 \\ \hline \end{tabular} Fixed Costs Item Harness maker's salary Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Cost Classification Variable and Fixed Costs Contribution Margin Analysis 2,946.67 55.00 250.00 20000 400.00 2) Tractensbility inveitigate Break-Even Analysis Total Variable Costs per Leash Milestone Two - Contribution Margin Analysis 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 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 ribbon 2 leashes per yard of ribbon 2 harnesses per yard of ribbon - 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, zero salvage value) snhu ACC 202 Milestone One: Operational Costs Data Appendix 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 - 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 ribbon - 2 leashes per yard of ribbon - 2 harnesses per yard of ribbon - 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, zero salvage value)

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