Classify each of the following costs whether: D-direct, or I-indirect (under column A); and V-

variable, or F-fixed (under column B).

ATRIEV Internet Shop - Expenses for the month of January, 2020
COST ITEM A B QUANTITY AMOUNT
1. Desktop Computers D F 6 units 4,166.00
2. Electricity I V 16 hrs/day 10,000.00
3. Shop rental I F 15 sq. M. 7,000.00
4. Salary for Manager/Cashier I F 2 shifts 20,000.00
5. Salary for Assistant D F 2 shifts 12,000.00
6. Depreciation cost - computer I V 36 months 3,750.00
7. Copy Paper D V 2 reams 240.00
8. Printer Ink F V 4 bottles 200.00
9. Photo paper I V 5 packs 300.00
10. Air Conditoning unit- 1.5 HP D V 1 piece 778.00
11. Electric Fan D V 3 pieces 150.00
12. 4x8 Tarpaulin D V 3 pcs. 300.00
13. Misc. Office supplies D F 1 lot 100.00
14. Computer maintenance fee D F 6 units 1,200.00
15. Internet Subscription D F 1 month 5,000.00
16. Chairs I F 8 pcs. 200.00
17. Mouse I F 6 pcs. 1,200.00
18. Headphones I F 5 pcs. 417.00
19. Cubicles D F 5 pcs. 278.00
20. Cleaning supplies I V 1 lot 200.00
21. Insurance - fire & contents D F annually 250.00
22. Contingency fund D V 1% 647.00
23. Counter Table D F 1 unit 83.00
24. Printer D F 1 unit 542.00
TOTAL 69,001.00

Assuming operation of 16 hrs/day, 30 days/month @ 25/hr rate: 16*30*25=12000*6 units=72k/month

Net profit of 3k/month is not sustainable. Look for ways to lower the operating expenses
 COMPUTATION
6x25k=150k/36

25000-2500/36=625

28000/36
3x1200=3600/24
3x600=1800/6

200 x 6 units

8x600=4800/24
6x600=3600/3
5x1000=5000/12
10000 all in/36

3000/12

3000 all in/36

13000/24

6 units=72k/month
nses
Classify each of the following costs whether: D-direct, or I-indirect (under column A); and V-
variable, or F-fixed (under column B).

JESS ELECTRONIC SUPPLIES & SERVICES (Costumized Designs Entertainment System)

COST ITEM A B QUANTITY AMOUNT
RAW MATERIALS
Subwoofer Speaker 10" D V 2 pcs 5,000.00
2 way Speaker 5" D V 4 sets 8,000.00
3 way Speaker 6" D V 4 sets 10,000.00
Karaoke Player D V 1 lot 8,000.00
Car Power Amplier D V 1 lot 4,000.00
Equalizer D V 1 lot 2,000.00
Tweeter D V 2 pair 1,000.00
RCA Plug D V 1 dozen 180.00
RCA Jack D V 1 dozen 180.00
Power Supply (50 Amp.) D V 1 lot 2,000.00
Auto Wire D V 5 meters 200.00
RCA Cable D V 5 meters 125.00
Air Tube 5" D V 1 pc 100.00
Air Tube 2" D V 8 pcs 240.00
Push Button Switch D V 1 set 50.00
Buffle Holder D V 1 pair 260.00
Blower Fan D V 1 pc 100.00
Speaker Wire D V 5 meters 125.00
Speaker Terminal D V 5 pcs 300.00
Spaghetti Tube D V 5 meters 125.00
6 Terminal Sacket D V 1 pair 100.00
Power Botton D V 1 pc 60.00
Speaker cloth D V 2 yard 400.00
Wiring Kit- Guage 4 D V 1 set 1,500.00
Wiring Kit- Guage 8 D V 1 set 1,700.00
Cum lock D V 1 pcs 150.00
Corner Stand D V 4 pcs 120.00
Digital Power Capacitor 2.0 Farad D V 1 pcs 1,500.00
AC Chord D V 1 lot 200.00
Leather (Black/ Gray) D V 3 yards 600.00
Plywood 3/4 D V 1 pc 1,400.00
Plywood 1/2 D V 2 pc 1,000.00
Stikwel (Big) D V 1 cont. 150.00
Woodscrew 3/4" D V 1 Gross 70.00
Nail 3/4" D V 1/2 kilo 80.00
Sand Paper # 120 D V 2 Sheet 40.00
Table Nosing D V 1 Roll 100.00
Rubber Nosing D V 1 Roll 50.00
Rugby D V 1 Bottle 80.00
Spray Paint D V 1 pcs 120.00
Flexible Hose D V 5 meters 150.00
PVC Tube D V 1 lot 600.00
Gun Tacker & Nail D V 1 Set 200.00
Wheel Caster 2" D V 1 Set 280.00
Transparent Plastic Sheet 1/2" D V 1 lot 1,200.00
Soldering Lead D V 1 roll 300.00
Flash Drive D V 2 pcs 1,000.00
OTHER EXPENSES
Elecrticity I V 3 hrs / Day 1,200.00
Transfortation (Purchaser) I F 2 lot 1,000.00
Transfortation (Materials) I F 1 lot 200.00
Labor D V 1 lot 15,000.00
TOOLS & EQUIPMENTS
Depreciation cost -Circular Saw I V 24 months 83.33
Depreciation cost -Jig Saw I V 24 months 104.17
Depreciation cost -Electric Drill I V 24 months 12.50
Depreciation cost -Electric Sander I V 36 months 13.89
Depreciation cost -Soldering Iron 30
Watts I V 9 Months 22.22

Depreciation cost - Vacuum Cleaner I V 12 months 33.33

Tester I V 9 Months 22.22
TOTAL 72,826.66

Assuming operation of 16 hrs/day, 30 days/month @ 25/hr rate: 16*30*25=12000*6 units=72k/month

Net profit of 3k/month is not sustainable. Look for ways to lower the operating expenses
ainment System)
COMPUTATION
 4000-2000/ 24
7500- 5000/ 24
2000- 1700/ 24
1500- 1000/ 24

250- 50/ 9

500- 100/ 12
400- 200/ 9

6 units=72k/month
nses
Classify each of the following costs whether: D-direct, or I-indirect (under column A); and V-
variable, or F-fixed (under column B).

JESS ELECTRONIC SUPPLIES & SERVICES (Costumized Designs Entertainment System)

QUANTITY AMOUNT
COST ITEM A B (C) (D)
RAW MATERIALS (1 complete Set)
Subwoofer Speaker 10" D V 2 pcs 5,000.00
2 way Speaker 5" D V 4 sets 8,000.00
3 way Speaker 6" D V 4 sets 10,000.00
Karaoke Player D V 1 lot 8,000.00
Car Power Amplier D V 1 lot 4,000.00
Equalizer D V 1 lot 2,000.00
Tweeter D V 2 pair 500.00
RCA Plug D V 1 dozen 180.00
RCA Jack D V 1 dozen 180.00
Power Supply (50 Amp.) D V 1 lot 2,000.00
Auto Wire D V 5 meters 200.00
RCA Cable D V 5 meters 125.00
Air Tube 5" D V 1 pc 100.00
Air Tube 2" D V 8 pcs 240.00
Push Button Switch D V 1 set 50.00
Buffle Holder D V 1 pair 260.00
Blower Fan D V 1 pc 100.00
Speaker Wire D V 5 meters 125.00
Speaker Terminal D V 5 pcs 300.00
Spaghetti Tube D V 5 meters 125.00
6 Terminal Sacket D V 1 pair 100.00
Power Botton D V 1 pc 60.00
Speaker cloth D V 2 yard 400.00
Corner Stand D V 4 pcs 120.00
AC Chord D V 1 lot 200.00
Leather (Black/ Gray) D V 3 yards 600.00
Plywood 3/4 D V 1 pc 1,400.00
Plywood 1/2 D V 2 pc 1,000.00
Stikwel (Big) D V 1 cont. 75.00
Woodscrew 3/4" D V 1 Gross 70.00
Nail 3/4" D V 1/2 kilo 80.00
Sand Paper # 120 D V 1 Sheet 20.00
Table Nosing D V 1 Roll 100.00
Rubber Nosing D V 1 Roll 50.00
Rugby D V 2 Bottle 160.00
Spray Paint D V 1 pcs 120.00
Flexible Hose D V 2.5 meters 75.00
PVC Tube D V 10 lot 60.00
Gun Tacker Nail D V 10 lot 4.00
Wheel Caster 2" D V 1 Set 280.00
Transparent Plastic Sheet 1/2" D V 6 lot 200.00
Speaker cloth D V 2 yard 400.00
Soldering Lead I V 10 lot 30.00
Labor (1 Complete Set) D V 1 lot 13,000.00
60,089.00
Add Ons
Digital Power Capacitor 2.0 Farad D V 1 pcs 1,500.00
Flash Drive D V 2 pcs 1,000.00
Wiring Kit- Guage 4 D V 1 set 1,500.00
Wiring Kit- Guage 8 D V 1 set 1,700.00
Cum lock D V 2 pcs 300.00
OTHER EXPENSES
Elecrticity I V 3 hrs / Day 1,200.00
Transfortation (Purchaser) I F 4 lot 250.00
Transfortation (Materials) I F 4 lot 50.00
Business Signage (4ft x 8ft) I F 12 moths 41.67
Leather (Black/ Gray) D V 3 yards 30.00
Plywood 3/4 (Wastage) D V 1 pc 70.00
Plywood 1/2 (Wastage) D V 2 pc 50.00
Speaker cloth (Wastage) D V 2 yard 8.00
Internet Data Promo I F 1 lot 50.00
TOOLS & EQUIPMENTS
Depreciation cost -Circular Saw I V 24 months 83.33
Depreciation cost -Jig Saw I V 24 months 104.17
Depreciation cost -Electric Drill I V 24 months 12.50
Depreciation cost -Electric Sander I V 36 months 13.89
Depreciation cost -Soldering Iron 30
Watts I V 9 Months 22.22

Depreciation cost - Vacuum Cleaner I V 12 months 33.33

Gun Tacker I V 12 months 12.50

Soldering Iron I F 12 months 20.80

Tester I V 9 Months 22.22
TOTAL 128,252.63

Assuming operation of 16 hrs/day, 30 days/month @ 25/hr rate: 16*30*25=12000*6 units=72k/month

Net profit of 3k/month is not sustainable. Look for ways to lower the operating expenses
rtainment System)
Mark- Up/10% Profit Margin/ 10%
COMPUTATION D x (1+0.10%) D/ (1-0.10)

₱ 5,500.00 ₱ 5,555.55
₱ 8,800.00 ₱ 8,888.89
₱ 11,000.00 ₱ 11,111.11
₱ 8,800.00 ₱ 8,888.89
₱ 4,400.00 ₱ 4,444.44
₱ 2,200.00 ₱ 2,222.22
1000/2 ₱ 550.00 ₱ 555.55
₱ 198.00 ₱ 200.00
₱ 198.00 ₱ 200.00
₱ 2,200.00 ₱ 2,222.22
₱ 220.00 ₱ 222.22
₱ 137.50 ₱ 138.89
₱ 110.00 ₱ 111.11
₱ 264.00 ₱ 266.67
₱ 55.00 ₱ 55.55
₱ 286.00 ₱ 288.88
₱ 110.00 ₱ 111.11
₱ 137.50 ₱ 138.89
₱ 330.00 ₱ 333.33
₱ 137.50 ₱ 138.89
₱ 110.00 ₱ 111.11
₱ 66.00 ₱ 66.67
₱ 440.00 ₱ 444.44
₱ 132.00 ₱ 133.33
₱ 220.00 ₱ 222.22

150/2
₱ 77.00 ₱ 77.78
 600/ 10
40/ 10

1200/6
₱ 440.00 ₱ 444.44
300/10
₱ 14,300.00 ₱ 14,444.44

₱ 1,650.00 ₱ 1,666.67
₱ 1,100.00 ₱ 1,111.11
₱ 1,650.00 ₱ 1,666.67
₱ 1,870.00 ₱ 1,888.89
₱ 330.00 ₱ 333.33

1000/ 4
200/ 4
500/12
0.01 x 600
0.05 x 1400
0.05 x 1000
0.02 x 400

4000-2000/ 24
7500- 5000/ 24
2000- 1700/ 24
1500- 1000/ 24

250- 50/ 9

500- 100/ 12

150/ 12

250/12
400- 200/ 9

0*6 units=72k/month
xpenses
 JESS ELECTRONIC SUPPLIES & SERVICES
CUSTOMIZED DESIGNS ENTERTAINMENT SYSTEM

CAPITALIZATION
A. REPAIRS & EQUIPMENT
Repair Cost ₱ 15,000.00
Business Signage ₱ 500.00
Gun Tacker Nail ₱ 40.00
Soldering Lead ₱ 300.00
TOTAL ₱ 15,840.00

B. PRE- OPERATING EXPENSES

Transfortation (Purchaser) ₱ 1,000.00
Transfortation (Materials) ₱ 200.00
TOTAL ₱ 1,200.00

C. INITIAL WORKING CAPITAL

C1. Initial Inventory & Supplies
Subwoofer Speaker 10" ₱ 5,000.00
2 way Speaker 5" ₱ 8,000.00
3 way Speaker 6" ₱ 10,000.00
Karaoke Player ₱ 8,000.00
Car Power Amplier ₱ 4,000.00
Equalizer ₱ 2,000.00
Tweeter ₱ 500.00
RCA Plug ₱ 180.00
RCA Jack ₱ 180.00
Power Supply (50 Amp.) ₱ 2,000.00
Auto Wire ₱ 200.00
RCA Cable ₱ 125.00
Air Tube 5" ₱ 100.00
Air Tube 2" ₱ 240.00
Push Button Switch ₱ 50.00
Buffle Holder ₱ 260.00
Blower Fan ₱ 100.00
Speaker Wire ₱ 125.00
Speaker Terminal ₱ 300.00
Spaghetti Tube ₱ 125.00
6 Terminal Sacket ₱ 100.00
Power Botton ₱ 60.00
Speaker cloth ₱ 400.00
Corner Stand ₱ 120.00
AC Chord ₱ 200.00
Leather (Black/ Gray) ₱ 600.00
Plywood 3/4 ₱ 1,400.00
Plywood 1/2 ₱ 1,000.00
Stikwel (Big) ₱ 75.00
Woodscrew 3/4" ₱ 70.00
Nail 3/4" ₱ 80.00
Sand Paper # 120 ₱ 20.00
Table Nosing ₱ 100.00
Rubber Nosing ₱ 50.00
Rugby ₱ 160.00
Spray Paint ₱ 120.00
Flexible Hose ₱ 75.00
PVC Tube ₱ 60.00
Wheel Caster 2" ₱ 280.00
Transparent Plastic Sheet 1/2" ₱ 200.00
Speaker cloth ₱ 400.00
Labor per Project ₱ 13,000.00
TOTAL ₱ 60,055.00

C2. Montly Operating Expenses

Electricity ₱ 1,200.00
Salary ₱ 2,000.00
TOTAL ₱ 3,200.00
TOTAL INITIAL WORKING CAPITAL ₱ 63,255.00

GRAND TOTAL CAPITALIZATION ₱ 80,295.00

NOTE: If we would prepare Initial Working Capital good for 3 months/ 3 Average type Home Entertainment Set,
(63,255*3=189,765) then we would need a total of
Php 26,805 capital.
 Scope of Works No of Days Type Amount
10
Cutting of Speaker Boxes/ Stands, etc,
Contract of
Assemble, Customizing Wiring kits, Wiring 10- 15 Days Works ₱ 13,000.00
installation, Apholstery Works, etc

Home Entertainment Set,