Dollinger index

204 ENTREPRENEURSHIP

g

, p

g g,

pp g

N=M*35k

Logistics wages and benefits

OPTION A - FAB SHIRTS OURSELVESCommercial Sewing equipmentJ

Required capacity (units/hr)

O

units/hr/machine

P=J/O

machines needed

Q

Capital required*

* Assumes $1000/machine, 3 year lifeStaffingR

Sewers (machines * 1.1)

S=R*35k

Sewer wages and benefits

MaterialE

sq meters consumed

T

Cost per sq meter*

U=T*E

Material cost

* Includes volume discount year 4 and 5TOTAL COST OPTION A (Q+S+U)OPTION B - PURCHASE SHIRTS THEN PRINTStaffingV

Add’l logistics staff for shirts

W=V*35k

Add’l Logistics wages & benefits

MaterialC=A/B

Units Sold

X=C*1.1

Shirts needed (including waste)

Y

Cost per shirt

Z=X*Y

Material cost

TOTAL COST OPTION B (W+Z)OPTION B PREFERREDAA=L+N+W Total Salaries

140000

Yr 1

23212

12,000

Yr 1

13

455,000

Yr 1

14,583

3.5

$ 51,042 $ 518,042

Yr 1

2

$ 70,000

Yr 1

23,33325,667

1.44

$ 36,960 $ 106,960$ 310,000

140000

Yr 2

313100

Yr 2

12

420,000

Yr 2

23,333

3.5

$ 81,667 $ 501,667

Yr 2

2

$ 70,000

Yr 2

37,33341,067

1.44

$ 59,136 $ 129,136$ 310,000

140000

Yr 3

43314

2,000

Yr 3

16

560,000

Yr 3

37,333

3.5

$ 130,667$ 692,667

Yr 3

2

$ 70,000

Yr 3

59,73365,707

1.44

$ 94,618$ 164,618$ 310,000

140000

Yr 4

58414

12,000

Yr 4

16

560,000

Yr 4

63,412

3

$ 190,235 $ 762,235

Yr 4

2

$ 70,000

Yr 4

92,235101,459

1.44

$ 146,101$ 216,101$ 310,000

140000

Yr 5

86421

7,000

Yr 5

24

840,000

Yr 5

103,758

3

$ 311,273$ 1,158,273

Yr 5

2

$ 70,000

Yr 5

137,200150,920

1.44

$ 217,325$ 287,325$ 310,000

BABYYOURWAY.COM PRODUCTION REQUIREMENTS (continued)