Question

Assignment: Every business needs a place to land, whether a venue to showcase your product or an office space to meet with clients. Invest in property to support the endeavor (either through purchase or rent ).

•Draft a document showing the property in which you'll invest and research costs to renovate it to your specifications (i.e. theatre, gallery, studio, working space, etc.).

•Calculate annual expenses including :

rent / (mortgage)

utilities (electric , gas, internet access , phones , etc.)

insurance

property taxex

example with numbers

Answer 1

Let us assume a business of manufacturing bags. Mr X started ABC ltd that manufactures bags. There is a factory taken at a rent of $20000 per month. The locality where the factory is located is near the market and therefore goods are sold directly from factories to market so as to avoid middleman cost. If such property would have been purchased, it would have cost $500000 and that too far from the market. Therefore, property/space is taken on rent. There are factory expenses for electricity, water, internet access, material, labour and many others. As labours are from other states, they live in the factory itself. For this purpose, there is a gas connection. These expenses are listed below:

Expenses	$
Direct labour (wages)	25980
direct material	40232
electricity charges	3000
water charges	2700
lightning expenses	3563
freight	2342
gas connection	1231
insurance charges	13124
salary of supervisor	20000
rent	20000
total	132172