Successful entrepreneurs understand all aspects of business

 

You plan to open a business manufacturing collars, leashes, and harnesses for pets. To begin, you will manufacture these in a standard style and size with plans to expand your range over the year. In a few weeks, you will present your company’s financial strategy to some key investors. To begin creating your strategy, you need to consider and record all the costs associated with operating your business. You have decided to use the job order costing system.

Prompt

Use the given operational costs in the Milestone One Operational Costs Data Appendix document to complete the first two tabs, “Cost Classification” and “Variable and Fixed Costs,” in the Project Workbook.

Specifically, you must address the following rubric criteria:

  • Cost Classification. Accurately classify all your costs in the “Cost Classification” tab of your workbook.
    • Identify direct material, direct labor, overhead, and period costs. (Note: Fixed and variable costs have been classified for you.)
  • Variable and Fixed Costs. Complete the “Variable and Fixed Costs” tab of your workbook. (Note: Some costs are provided for you. Fill in only the missing costs.)
    • Determine your total variable cost per unit and the total fixed costs for each product. Show your work using calculations to the side of the table or using appropriate formulas in the table.

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
  • 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—$0.50 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)
  • 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

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 20% with the discount code RESEARCH