Sole Changers

Finances

Each of our 19 members is investing $1,000.00 for a total of $19,000.00. Sole Changer will take out a small loan of $10,000.00. Our total startup capital is $29,000.00. We will purchase $2,000.00 worth of supplies to start up this business. We will purchase equipment for $5,000.00. To keep our fixed cost low we will work in the school or is someone’s house. Our liability insurance will cost about $167.00 a month. The loan will be our only debt. our monthly loan payment will be $111.02 based on a 10 year loan at 6%. Our fixed costs per month is $278.02.

Our group calculated that the total manufacture cost for our sole changer will be about $36.00 per pair. We will sell each pair for $75.00. We will have to sell at least 7 pairs a month to break-even.