Attachment # 00012368 - Part_One_-_Answers_(2).xlsx

Part_One_-_Answers_(2).xlsx (13.17 KB)

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(refer to the detailed question and attachment below)

1. Your Company Name:2. and 3. Detailed list and classification of costsPlease show or explain your computations in a readable/understandable format.No points will be given if no explanations are provided.Variable Costs and Expenses(Round your numbers to the hundreth, ie. $x.xx)Cost ItemsCost Per T-ShirtManufacturingExplanations:Total Variable Manufacturing cost per T-Shirt:Non-ManufacturingTotal Variable Non-Manufacturing costs per T-shirt:Fixed Costs and Expenses(Round your numbers to the nearest whole dollar)Total Fixed Manufacturing cost per year:Total Variable costs per T-shirt:Total Fixed Costs Per Month:Cost Per MonthT-shirtst-shirts cost $3.75 each to purchase1000 sheets per case; 1 sheet per shirt; $400 per case / 1000 sheets = 0.40(2) transfer paper(1) ink cartridge cost $50; makes 500 prints per cartridge; $50 / 500 prints = 0.10(3) printing costs/ink jet cartridge(4) employee wages$20 a ream; 200 sheets in a ream; $20 / 200 sheets = $0.10; one flyer printed for every 5 shirts sold; $0.10 / 5 shirts = $0.02(1) laser paper$50 for ink cartridge; makes 500 prints; $50 / 500 prints = 0.10; one flyer printed for every 5 shirts sold; $0.10 / 5 shirts = $0.02(2) ink cartridge$10,000 for 12 designs; $10,000 / 12 months = $833.33artist fee$2500 per month; 90% of rent for operations; $2500 x 0.90 = $2250Mall rent$4500 for heat press; heat press lasts for 3 years; $4500 / 3 years = $1500 per year; $1500 / 12 months = $125Heat press$6000 cost; lasts for 3 years; 90% for operations; $6000 / 3 years = $2000 per year; $2000 / 12 months = 166.67 x 90% = 150Computer & Printer$2500 per month; 10% for selling & admin; $2500 x 0.10 = $250Mall Rent$6000 cost; lasts for 3 years; 10% for selling & admin; $6000 / 3 years = $2000 per year; $2000 / 12 months = 166.67 x 10% = 16.6712,000 per year; $12,000 / 12 months = $1000Owner's Salary$3600 per year; $3600 / 12 months = $300InsuranceTotal Fixed Non-Manufacturing costs per month:employee makes $8/hour; 10 shirts an hour; $8 / 10 shirts = 0.804. Cost Formulaa) Total Costb) Net ProfitY = 4925 + 5.09x4925 monthly fixed costs + (5.09 x 650 shirts)(650 shirts x $15) - $8,234Business Simulation Project Report - Part One