Variable Cost Cost of Material Sand Soda Pottassium Borax Lime Fluor spar Zinc oxide

Fixed Cost $ per batch $ 1.75 $ 5.97 $ 4.72 $ 1.50 $ 1.54 $ 0.94 $ 4.20 $ 20.62 $ $ $ $ $ 0.23 0.57 0.80 21.42 250.00 Professional Services Advertising and Promotion Contributions Dues and Subscriptions Travel and Entertainment Insurance Taxes and licenses Repair and Maintenance Rent Utilities and Telephone Miscellaneous Total Depreciation for Furnace and Oven Equipments Gas Tanks Trucks Total Depreciation Giberson's Salary

Per month $ $ $ $ $ $ $ $ $ $ $ $ 50.00 20.00 15.00 35.00 75.00 90.00 45.00 25.00 175.00 60.00 50.00 640.00

Antimony Arsenic

Total Material Cost Cost of Gas

Office Supplies Hand Tools and Manufacturing Supplies Part time labor Total Variable Cost per batch Contribution Margin per batch Break Even Point

$ $ $ $ $

6.25 37.50 25.00 340.17 436.83 85.40 Batches

Total Fixed Cost (Annual)

Since currrently he is producing only around 40 batches, the production is well below the break even point and he is incurring lo He can do the following(Recommendation): 1. Increase the production of vases and paperweights as these are high value items 2. Increase the capacity..if the batch can be proceses earlier or if he can have two batches charged simultaneosuly. This c 3. Increase the price at which he is selling his product.

Annual $ 600.00 $ 240.00 $ 180.00 $ 420.00 $ 900.00 $ 1,080.00 $ 540.00 $ 300.00 $ 2,100.00 $ 720.00 $ 600.00 $ 7,680.00

Selling Price Weekly Average Production Weekly Sales First Seconds Patterned Glass $9.00 18 1 $171.00 Paperweight $15.00 10 0 $150.00 Wrapped tumblers $8.00 30 2 $256.00 Vases $25.00 7 1 $200.00 Total Weekly sales $777.00

$ 2,500.00 $ 375.00 $ 50.00 $ 1,700.00 $ 4,625.00 $ 25,000.00

$ 37,305.00

ven point and he is incurring losses.

harged simultaneosuly. This could be done by hiring people.

Weekly Sales