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HS803- 21

®

Product Evaluation Form

Step 1:

Determine fixed costs

Fixed costs are the business expenses that remain the same regardless of the number of products

produced or services provided. Wages*, rent, marketing expenses, and equipment are examples

of fixed costs.

The sample table below illustrates the fixed costs encountered by most JA companies. It assumes

a company of 10 employees meeting 11 times.

(Please note: Wages are not paid for the first of the 12 meetings.)

Expenses

Sample Company

Your Company

A. JA company employee wage

(11 two-hour meetings x $.50

hour)

22 hours, $11 per employee,

(10 employees x $11 = $110)

B. JA company officer wage

(11 meetings x $2 per meeting)

$22 per officer,

(5 officers x $22 = $110)

C. Rent and other fixed expenses,

paid to local JA Area Office with

sales tax upon liquidation

$25

D. Marketing supplies

$25

E. Other

F. Total fixed costs

$270

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