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What goes into a Slushie ?. With your group, brainstorm all the costs associated with producing a slushie …. Two categories of expenses. Consumables- items that are “used up” when producing the product Overhead- expenses to keep the business running, not part of the product. Consumables.
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What goes into a Slushie? With your group, brainstorm all the costs associated with producing a slushie….
Two categories of expenses • Consumables- items that are “used up” when producing the product • Overhead- expenses to keep the business running, not part of the product
Consumables • Cups • Straws • Ice • Flavoring
Overhead • Electricity • Employee wages • Rent/Mortgage • Advertising • Insurance • Furniture
Consumables- The Breakdown • Cups: $23/1,000 cups • Straws: $150/10,000 straws • Ice: $4.50/block (one block makes 10 small) • Flavoring Process • Concentrate is purchased by the gallon ($32) • The concentrate is mixed with a sugar water solution producing 2,730 oz of flavoring • Each small has 3 oz of flavoring
Overhead • Note: Assume a 30 day month, approximately 150 small slushes are purchased per day • Electricity: $125 month • Employee wages: $8/hour, 7 hour per day • Rent/Mortgage* • Advertising* • Insurance* • Furniture* • *for this activity, we willnot include these expenses