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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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