Cost_edited - According to the provinces of Canada, there...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
According to the provinces of Canada, there are over 1.6 million households in the city of Toronto alone. Theoretically, to maximize our profit, we should control at least half of the market, but considering that we are to start as a small business, we will only expect to target 1% of the total households at first; therefore we will just produce 15000 units of the Dispenso-Bin in the first 6 months. COST Labor cost Hire 20 workers $10 per hour 8 working hours in one day 120 work days for each worker Total labor cost: 20*10*8*120=$192000 Rental cost 6 months rent $7000 rental per month $1000 utility per month Total rental cost: 6*(7000+1000) =$48000 Equipment cost: $10000 Patent fee and register fee: $2000 Advertising and flyer cost: $10000 Administration fee: $160000 Cost(s) to make our product: Small Dispenso-Bin: $3 20 Pack of Small biodegradable garbage bags: $1.5 Medium Dispenso-Bin: $5 20 Pack of Medium biodegradable garbage bags: $2.0 Large Dispenso-Bin: $7
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

Cost_edited - According to the provinces of Canada, there...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online