Company Name: Gain Radio
Product: Radio Advertising and Contests
Incorportation cost: Should we incorporate? We shouldn't incorporate because we are not even sure how much we will make off it plus we can always incorporate later if worst came to worst
Incorportation cost: Should we incorporate? We shouldn't incorporate because we are not even sure how much we will make off it plus we can always incorporate later if worst came to worst
Insurance Fees: None
Rental of facility, furniture, equipment: $0
Marketing Support: None
Audit and Banking: It will probably be a cash only business.
Management Salaries: TBA (Depending on what we make.)
Total Fixed Cost: Depends on what we make.
Variable Costs:
Material: Tape and Poster Paper
Quantity: 5 Rolls and 10 Pieces of Poster Paper
Unit Cost: $4.99 for 4 rolls of Masking Tape and $5.00 for 5 Pieces of Poster Paper
Extended Cost: $9.98 for 10 Rolls of Masking Tape and $10.00 for 10 Pieces of Poster Paper
Total: $19.98
Total Raw Material Cost:
Add sales tax: $20.93
Add 5% scrap and mistakes: $1.04
Adjusted cost: $21.97
Wages: (Total wages estimated to produce all costs)
Outsourcing:
(If you contact others to help)
Total Cost of goods produced: $21.97
Commission Totals:
Total Variable Costs: $21.97
Break Even Analysis
If this business were to take place over four weeks, how many products do you have to make per night?
How many need to be sold per day? Too break even we would need to make $5.50 per week
Is this reasonable? Yes this is reasonable, because if we charge $5.00 for advertising and we sell raffle tickets for 50cents each then we should be able to easily earn over $5.50 a week
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