Professional Documents
Culture Documents
Estimated Cost
$18,000
Rent
Insurance
Advertising
Admin Labor & Taxes
Variable Costs
$24,000
$1,500
$6,000
$60,000
$270,000
1
1
Assumptions1
Depreciates $6,000
per yr
$4,000 per month
$1,500 per year
$1,000 per month
$10,000 per month
$90 * 3,000 units
Cost
Rent
Advertising
Insurance
Admin Labor & Taxes
Tools and Equipment
$48,000
$12,000
$1,500
$120,000
$6,000
$187,500
Assumptions
$4,000 per month
$1,000 per month
$10,000 per month
$18,000 depreciates
3yr
Total Variable
Costs/Unit
Cost
$20
$25
$10
$15
$5
$10
$5
Per
Per
Per
Per
Per
Per
Per
$90
Assumptions
Board
Board
Board
Board
Board
Board
Board
Note: Pay attention to the UNITS (fixed cost per YEAR and Variable costs
per Unit).
Assumptions
Increase of $10
From table 3
Unit Price Var. cost/unit
20$ higher than yr 1
Profit/unit X Unit Sales
Vol.
From table 2
Gross Profit-Fixed Costs
Assumptions
Same as yr 2
From table 3
Unit Price Var. cost/unit
Profit/unit X Unit Sales
Vol.
From table 2
Gross Profit-Fixed Costs