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You plan to open a small business for manufacturing pet collars, leashes, and hamesses, You have for a workshop space vou can use for sewing your products. After some Iesearch and pianning you haye 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 $(500$ squ feet each$).$ You have taken out a loan for start$-$up costs, and the monthly payment is $$550$; it goes in effect immediately and should be accounted for in your costs. You will also collect a modest salary the first year of $$500$ per month; remember to divide evenly among the services.

Salary and Hiring Data

One collar maker, who will be paid $$16\mathrm{.}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\mathrm{.}00$ per hour and work $40$ hours per week

One receptionist, who will be paid $$15\mathrm{.}00$ per hour and work $30$ hours per week

Dther 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

Polyester$/$nylon 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\mathrm{.}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$ year life, zero salvage value$)$

Utilities and insurance: $$600$ per month; allocate based on square footage

Scissors, thread, cording: $$1,200$

Price tags: $$250$ for $2,500($ $$0\mathrm{.}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

Mifestone One Variable and Fixend Costs

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Total Veriable Coats pir Calla!

Total Fised Cones

Teashins

nem

Aigh$-$tefaile strench nyian webting

solpuierficyon ribbons

Buckies made of cast hardware

Price tag:

Variabla Castitem

Tolal Varinele Costs per Lent?

inem

rised Costs

Leash makits ialary $($munthty$)$

Diprecietion on semirnt marhines

Rent:

Urilties and insurance

Sclssors, thread, and coediet

Inko parment

salantoge?

Harnesses

item

Fixed Costs

Hamessmaker's alaty

Depreelation on sewite machines

ient

vilitics and hyarance

scissorestiread, and eording

loint

Salary to seil

Total Veriable Costs per Hemeis

rotal Flxed Cuses

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