HELP!!! Plz

Asked 1 year ago
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You are opening a new business and have to set up utilities. The cable company charges a $49.95 one time connection fee which includes the price of hardware. The cost of the service is $45.95 per month. The phone company charges $79.95 for the connection fee and hardware, plus $29.95 per month. What is the total cost for both services for the first month? _____________ What would be the DIFFERENCE in the cost of the two plans for 12 months? ______________

Blank 1: ____________
Blank 2: _____________

2 Answer

2

Answer:

1.$400.00 2.$4,000.00

Step-by-step explanation:

Scenario: Your team has been hired to provide financial analysis for a start-up company, Bobble in Style, which produces customized bobble heads. The bobble heads are made out of less rigid materials and are more true to life than those of competitors. The company inventors, Mr. and Mrs. Lee, are going to pitch their idea to Shark Tank in a few months, but first they need to have a better understanding of the business financials. The Lee’s are already creating and selling their product from their home-based office and work area. They know what costs are involved with making the bobble heads on a small scale, but they don’t have an understanding of financial figures beyond basic costs. They need you to make sense of various financial figures for them.

Cost Classification: The Lee’s have provided you with the following costs and relevant information that are assumed for year 20XY. Classify the costs as variable costs or fixed costs. Explain the importance of distinguishing between variable and fixed costs. If business is expected to be steady from month to month, provide a monthly budget based on these figures.

Advertising Fees = $4,000

Labor = $400/month

One part-time employee will be hired to take care of packaging and shipping. This employee will be paid $10 per hour. He or she is estimated to work 40 hours total per month.

Packaging Supplies = $3,000

Office Supplies = $800

Phone and Internet Service = $115/month

Product Supplies = $9,000

Shipping Fees = $1,000/month

Conference Exhibitor Fee = $3,000

Travel Expenses for Conference (e.g. airfare, meals, taxi) = $1,200

Utilities for the Home Workshop = $105/month

Break-Even Analysis: You have been asked to calculate how many units need to be sold to break even, based on the costs provided in task #3. Assume that only one conference will be attended and the estimated expenses associated with this conference are on target. Also assume that the value for total units per year is based on sales of 70 units per month. Therefore total units sold per year are 840. The selling price per unit is $79.

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Prof. Jaquan Walker
15.5k 3 10 26
answered 1 year ago
2

Answer:

Blank 1: $205.8

Blank 2: $388

Step-by-step explanation:

For blank 1, I added up the 4 numbers because that's what 1 month would cost for both services. For blank 2, I multiplied the monthly fee for each service separately by 12, for 12 months. After that, each equation still separate add the 1 time fee and subtract each company price and you will get your answer.

- I hope this is correct and helpful :)

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Neha Greenfelder
15.5k 3 10 26
answered 1 year ago