Today you need to take the numbers you discovered through your research, entrepreneurship and capital shopping to determine your total costs. Once this figure is calculated, you can estimate your production levels and price of your average item for sale. To calculate your total costs, Take the figure you calculated for the following
Rent $______________
Capital $______________
Labor $______________
Advertising $______________
Insurance ($50 per worker per month) $______________
+ ---------------------- Add them up
Total Cost $______________
Now you are ready to figure out your production levels.
Review your business plan and answer the following questions in your mind.
How many transactions do you think you can make per hour/per number of days you are open each month?
Take your total costs and divide by the number of transactions you think you can make in a month.
The result will give you a price you will need to set to cover your costs.
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