Annual cost is computed by cost per day multiplied to total operating days 289

Annual cost is computed by cost per day multiplied to

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**Annual cost is computed by cost per day multiplied to total operating days, 289. The computation of water consumption per month is based on the consumption rate per cubic meter which is obtained and assumed from the official web page of Calamba Water District which is Php 24.05/m 3 . The average water consumption of the services areas is 22.67 m 3 . Thus the computation of water charge for a month would be: Water Charge = Consumption rate x Cubic meter consumption = 24.05 x 22.67 = 545.21 Computation of utilities expense a year is summarized in the table below. Differences of minimal amounts are due to rounding off. Internet connection would seldom be used therefore the proponents
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50 have assumed to avail the latest offer of Philippine Long Distance and Telecommunication Company, a wide-known internet service provider, which has the lowest price of Php 699.00 per month. The dance studio will operate 6 days a week and a total of 24 days a month. Table 30. Utilities expense Description Monthly Cost (in pesos) *Annual Cost (in pesos) Electricity 10,953.57 131,442.88 Water 545.21 6,542.52 Internet 699.00 8,388.00 TOTAL 12,197.78 146,373.40 *Monthly cost multiply to 12 months is equal to annual cost Depreciation Expense The proponents used the straight line method to determine the depreciation of equipment and furnitures. The depreciation of an equipment or furniture is calculated as indicated below: Annual Depreciation = Acqsuisitioncost Salvage value Estimatedusefullife Table 31. Depreciation expense details Description Total Cost (in pesos) Useful life (in years) Annual Depreciation Service Equipment Office Furniture and Fixtures Leasehold Improvement 95,600 66,708 257,251.10 10 15 30 9,560.00 4,447.20 8,575.04 Total 419,559.1 22,582.24 Service Cost
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51 Service cost simply means the cost of providing the said service to the market. Service cost of the studio is composed of the benefits that will be received by the employees and their compensation that was already illustrated in Table 22 ( Human Resource details). Employee Contribution A business success depends on its employees’ performance; poor performance is detrimental to your company’s success. Creating a well-rounded approach to managing and coaching your work force requires the expertise of a human resources leader and the support of your company’s executive leadership. JAST Dance Studio values their employees as much as give importance to their clients. And in order for an employee to work hard, the partners decided to give contributions aside from the employee’s reasonable compensation. The table below shows the contribution that the partners will provide for the employees. Table 32. List of contribution Description Number of employees SSS (in pesos) Philhealt h (in pesos) Pag-IBIG (in pesos) Total (in pesos) Annual Contributio n (in pesos) Studio Administrator Dance Instructor Zumba Instructor Front Desk Officer Security personnel Utility personnel 1 3 1 1 1 1 847.20 1,104.90 736.70 663.00 589.30 552.50 137.50 300 125 112.50 100 100 100 300 100 100 100 100 1,084.70 1,704.90 961.70 875.50 789.30 752.50 13,016.40 3,409.80 1,923.40 10,506 9,471.60 9,030 Total 8 4493.60 875 800 6,168.60 47,357.20 Employee Benefits
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52 One of the most important components of running a successful business is keeping employees happy and providing them with enough incentive to maximize their productivity.
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  • Fall '16
  • Benjie
  • Depreciation, Kompakt, SM Dept, Nat’l Bookstore

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