Numbers can be random; just need a layout of how I should format.. The professor isn't clear.
Fixed Cost Analysis: What is the fixed annual cost to produce the client’s good or service for a restaurant?
1. Location: What operating location has the client chosen? What is the annual rental or depreciation cost of this site? Add to this any real estate taxes. If operating from a home, note the percentage of house area used and multiply that by the total of all house costs.
2. What are the expected annual costs for durables? (These minimally include: vehicle costs, office equipment, furniture, and any on premise signage.) Assume five year depreciation.
3. What is your gross annual payroll cost including salaries, payroll taxes, and benefits?
4. What are the annual operating costs? (These minimally include: utilities, refuse removal, office supplies, web & phone services, insurance, vehicle maintenance and travel costs, grounds and building maintenance services, and the like.)
5. What is your total annual fixed cost amount?