Question 1) Choose 3 small businesses that an individual might start with $100,000 to $500,000 of capital. Different business in different industries.

1.a For each business, what types of fixed expenses might you expect to incur every month? List at least five.

1.b For each business, what types of variable expenses might you expect to incur every month. Or in other words, what types of expenses would compose “Cost of Goods Sold”? Some businesses may have only one, some may have many components.

1.c. Were the fixed costs you listed in 1.a similar between the three businesses or very different? Why or why not? d

1.d Were the variable costs you listed in 1.b similar between the three businesses or very different? Why or why not?

Question 2)
2) Handy Doll Manufacturing has the following information: The average doll sales price is $100. Raw materials for a doll is $10. It takes 30 minutes to assemble a doll.

Production labor is $30 per hour. Operating costs are as follows: Salaries $5,000 per month, Insurance $600 per quarter, rent $1,000 per month, utilities $500 per month.
How many dolls must be sold per month to break even?

How many dollars in sales does this represent?

What is the contribution margin for EACH doll?