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41 42. Harnesses 50 51 52 53 54 55 57 Total Variable Costs per Harness 514.60 Total Fiked Costs 5. 3,975.00 $ Collars 7 Item Variable Cost/Item 9 High-tensile strength nylon webbing 10 Polyesterylon ribbons 11 Buckles made of cast hardware 12. Price tags 13 $$$$4.003.002.000.10 Item Fixed Costs Collar maker's salary (monthly) Depreclation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan payment Salary to self 16 17 19 Total Variable Costs per Collar $9.10 Total Fixed Costs $3,815,00 Total Variable Costs per Leash 41 42. Harnesses 50 51 52 53 54 55 57 Total Variable Costs per Harness 514.60 Total Fiked Costs 5. 3,975.00 3 Milestone Two - Contribution Margin Analysis Total Variable Costs per Leash 3 Milestone Two - Contribution Margin Analysis 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 - Polvesterylon 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-50.50 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 15 . year life, zero salvage value) - Utilities and insurance: $600 per monthy allocate based on square footage - Scissors, thread, cording: $1,200 - Price tags: 5250 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 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 $ Collars 7 Item Variable Cost/Item 9 High-tensile strength nylon webbing 10 Polyesterylon ribbons 11 Buckles made of cast hardware 12. Price tags 13 $$$$4.003.002.000.10 Item Fixed Costs Collar maker's salary (monthly) Depreclation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan payment Salary to self 16 17 19 Total Variable Costs per Collar $9.10 Total Fixed Costs $3,815,00 41 42. Harnesses 50 51 52 53 54 55 57 Total Variable Costs per Harness 514.60 Total Fiked Costs 5. 3,975.00 $ Collars 7 Item Variable Cost/Item 9 High-tensile strength nylon webbing 10 Polyesterylon ribbons 11 Buckles made of cast hardware 12. Price tags 13 $$$$4.003.002.000.10 Item Fixed Costs Collar maker's salary (monthly) Depreclation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan payment Salary to self 16 17 19 Total Variable Costs per Collar $9.10 Total Fixed Costs $3,815,00 Total Variable Costs per Leash 41 42. Harnesses 50 51 52 53 54 55 57 Total Variable Costs per Harness 514.60 Total Fiked Costs 5. 3,975.00 3 Milestone Two - Contribution Margin Analysis Total Variable Costs per Leash 3 Milestone Two - Contribution Margin Analysis 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 - Polvesterylon 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-50.50 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 15 . year life, zero salvage value) - Utilities and insurance: $600 per monthy allocate based on square footage - Scissors, thread, cording: $1,200 - Price tags: 5250 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 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 $ Collars 7 Item Variable Cost/Item 9 High-tensile strength nylon webbing 10 Polyesterylon ribbons 11 Buckles made of cast hardware 12. Price tags 13 $$$$4.003.002.000.10 Item Fixed Costs Collar maker's salary (monthly) Depreclation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan payment Salary to self 16 17 19 Total Variable Costs per Collar $9.10 Total Fixed Costs $3,815,00

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