In the case exercise nunes estimated many of the fixed

Question

Part One: Basic Overhead Expenses

In the case exercise, Nunes estimated many of the fixed costs of the Ankh Collection as annual costs. Identify the annual costs of each item below, and then calculate the monthly amount.

Most of the fixed costs will begin as soon as Nunes starts working on the collection, but not all of them. Use the notes column to state which month each of the costs will begin.

Use the notes column to state which costs might be charged less often (e.g. annual or twice a year).

	annual	monthly
Website maintenance
Salary
Trademarks/copyright
Licensing
Insurance
Utilities
Office Expenses
Accounting Fees
Sewing & Drafting supplies

Part Two: Sample Manufacturing Costs

Nunes will need to create samples for her sales representative to take to the trade shows. The calculation of the cost of manufacturing the samples is somewhat complicated, because she expects to have a larger collection (i.e. more pieces) each season.

The first step is to create a table showing how many unique design pieces are included in each collection. Because of the long cycle for creating collections, the model needs to have 4 years of seasonal collections.

The second step is to identify from the case exercise how many samples are required for each unique design piece. Also note the average price (Revenue Model template) and percentage required for materials and labor for the samples (Variable Costs template).

Number of samples per piece

Average Ankh Collection price (wholesale)

COGS as percentage of price

Finally, calculate the sample costs for each season. Below the sample costs line are the months when samples are made and the sample costs are paid for the fall and spring collections (Based on Exhibit 3 in the case).

	Fall 2011	Sp 2012	Fall 2012	Sp 2013	Fall 2013	Sp 2014	Fall 2014
Sample Costs per collection
When the samples are required
When the invoice is received	Nov.	July	Nov.	July	Nov.	July	Nov.
When the invoice is paid	Nov / COD	July / COD	Dec	August	Dec	Aug.	Dec

Attachment:- Ankh LLC.xls