Monday, 26 September 2011

Product pricing


Company Name: JASTS
Product: Flowers
Incorportation cost: Should we incorporate?
Insurance Fees: None
Rental of facility, furniture, equipment: None
Marketing Support: None
Audit and Banking: None
Management Salaries: we'll split the money equally
Total Fixed Cost:  buying cost $17.00

Variable Costs: 10 x $1.50= $15.00 / 5x $1.50= $7.50 
Material: wrap it with wrapping paper  Quantity: GOOD Unit Cost: $1.50/$2.00  
Extended Cost: 17x $1.5= $25.5 /  17x $2=  $34

Total Raw Material Cost: $17.00+$8.00= $25.00
Add sales tax: $1.40x0.05%+$1.40= $1.50
Add 5% scrap and mistakes: $25x1.05%= $26.25
Adjusted cost: from $25to $26.25
Wages: (Total wages estimated to produce all costs): divide it up equally
Outsourcing: friends
(If you contact others to help)
Total Cost of goods produced: $20
Commission Totals:
Total Variable Costs: 

No comments:

Post a Comment