7.2. Cost forecast / Financial section / Financial and Organizational Model of a Community Beauty Salon.

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Summary Content / Financial section

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Forecasting direct materials costs per service.

Indicator name		units of meas.	1 month	2  month	3  month	4  month	5  month	6  month
Haircuts	norm of Shampoo	ml	15	15	15	15	15	15
	Price	Euro	20	20	20	20	20	20
	Summa	Euro	0,25	0,25	0,25	0,25	0,25	0,25
	norm of Conditioner	ml	10	10	10	10	10	10
	Price	Euro	15	15	15	15	15	15
	Summa	Euro	0,15	0,15	0,15	0,15	0,15	0,15
	norm of Hairspray	ml	35	35	35	35	35	35
	Price	Euro	35	35	35	35	35	35
	Summa	Euro	3,06	3,06	3,06	3,06	3,06	3,06
	norm of Hairmousse	ml	15	15	15	15	15	15
	Price	Euro	30	30	30	30	30	30
	Summa	Euro	1,5	1,5	1,5	1,5	1,5	1,5
	Total:	Euro	4,96	4,96	4,96	4,96	4,96	4,96
Makeup	norm of Liquidpowder	ml	1,5	1,5	1,5	1,5	1,5	1,5
	Price	Lt	35	35	35	35	35	35
	Summa	Lt	1,05	1,05	1,05	1,05	1,05	1,05
	norm of Mascara	ml	0,35	0,35	0,35	0,35	0,35	0,35
	Price	Lt	25	25	25	25	25	25
	Summa	Lt	0,73	0,73	0,73	0,73	0,73	0,73
	norm of Pomade	ml	0,3	0,3	0,3	0,3	0,3	0,3
	Price	Lt	10	10	10	10	10	10
	Summa	Lt	0,075	0,075	0,075	0,075	0,075	0,075
	norm of eye shadow	ml	0,4	0,4	0,4	0,4	0,4	0,4
	Price	Lt	15	15	15	15	15	15
	Summa	Lt	0,17	0,17	0,17	0,17	0,17	0,17
	norm of Cream	ml	1,1	1	1	1	1	1
	Price	Lt	12	12	12	12	12	12
	Summa	Lt	0,08	0,08	0,08	0,08	0,08	0,08
	norm of Loose powders	ml	0,7	0,7	0,7	0,7	0,7	0,7
	Price	Lt	30	30	30	30	30	30
	Summa	Lt	1,4	1,4	1,4	1,4	1,4	1,4
	norm of Contour pencil	ml	0,1	0,1	0,1	0,1	0,1	0,1
	Price	Lt	10	10	10	10	10	10
	Summa	Lt	0,8	0,8	0,8	0,8	0,8	0,8
	Total:	Lt	4,31	4,31	4,31	4,31	4,31	4,31

Direct material costs per unit of production remain constant for six months. We purchased materials from suppliers for six months at a time, so the price of raw materials (shampoo, conditioner, hairspray, mousse, powder, mascara, lipstick, eyeshadow, cream, and contouring) remained constant each month.

The amount of direct material costs for hair and makeup was calculated using the formula: Price of material × Norm of material ÷ Quantity of material per bottle.

Direct costs for providing one service are calculated by summing the cost of all materials required to provide that service.

After calculations, we find that direct material costs for a haircut are 4.96 Euro, and for makeup – 4.31 Euro.

Forecast of material costs to fulfill the production program.

Indicator name		1 month	2 month	3  month	4  month	5  month	6  month	Iš viso:
Haircut	Production program, pcs.	700	720	720	725	740	750	4355
	Material costs per service, Euro	4,96	4,96	4,96	4,96	4,96	4,96	29,76
	Suma, Euro	3472	3571,2	3571,2	3596	3670,4	3720	21600,8
Makeup	Production program, pcs.	210	210	210	220	220	230	1300
	Material costs per service, Euro	4,31	4,31	4,31	4,31	4,31	4,31	25,86
	Suma, Euro	905,1	905,1	905,1	948,2	948,2	991,3	560,3
Total:		4377,1	4476,3	4476,3	4544,2	4618,6	4711,3	27203,8

The cost of materials for the production program is calculated by multiplying the production program by the cost of materials per product. The cost of materials per product is calculated in Table 7. The cost of materials for the production program was calculated separately for each month, because the beauty salon expects to serve more and more customers every month. In half a year, it promises to serve 4355 customers who want to get a haircut and 1300 customers who want to get makeup. The sum of the costs of haircut and makeup materials amounted to 27203.8 Lt.

Forecast of direct wages and social security contributions (make of service)

Name of indicator		Units  meas.	1  month	2  month	3 month	4 month	5 mouth	6 month.
Haircut	Hourly rate for hairwashing	Euro	5	5	5	5	5	5
	Normative time	Hour	0,08	0,08	0,08	0,08	0,08	0,08
	Unit price	Euro	0,4	0,4	0,4	0,4	0,4	0,4
	Hourly rate for haircuts	Euro	6	6	6	6	6	6
	Normative time	Hour	0,5	0,5	0,5	0,5	0,5	0,5
	Unit price	Euro	3	3	3	3	3	3
	Hourly rate for hairstyling	Euro	7	7	7	7	7	7
	Normative time	Hour	0,2	0,2	0,2	0,2	0,2	0,2
	Unit price	Euro	1,4	1,4	1,4	1,4	1,4	1,4
	Summa of unit prices	Euro	4,8	4,8	4,8	4,8	4,8	4,8
	Social security contributions	Euro	1,49	1,49	1,49	1,49	1,49	1,49
Makeup	Hourly rate for facial treatments	Euro	9	9	9	9	9	9
	Normative time	Hour	0,33	0,33	0,33	0,33	0,33	0,33
	Unit price	Euro	3,00	3,00	3,00	3	3	3
	Hourly rate for eyelid tinting	Euro	8	8	8	8	8	8
	Normative time	Hour	0,17	0,17	0,17	0,17	0,17	0,17
	Unit price	Euro	1,36	1,36	1,36	1,36	1,36	1,36
Makeup	Hourly rate for mascara	Euro	8	8	8	8	8	8
	Normative time	Hour	0,08	0,08	0,08	0,08	0,08	0,08
	Unit price	Euro	0,64	0,64	0,64	0,64	0,64	0,64
	Summa of unit prices	Euro	5	5	5	5	5	5
	Social security contributions	Euro	1,55	1,55	1,55	1,55	1,55	1,55

The staff at the GrazuteRoom beauty salon (hairdresser, makeup artist) will work on a piecework basis. This means that wages are directly related to the number of clients served.

Hairdressing services include the following basic procedures: cutting, washing, and styling hair. Makeup services include applying cream and powder to the face, tinting and contouring the eyelids, and applying mascara. Hourly and time rates are set for each service separately. The unit price is calculated by multiplying the hourly rate by quantities hourly rate. The unit price for a hairdresser is €4.80, and fo a cosmetologist, €5. Social security contributions are 30.98 percent of the unit price.

Employee wages and social insurance

Indicators	1 Month		2 Month		3  Month		4  Month			5  Month		6  Month		Total
3 hairdressers' salaries
Production program, pcs.	700		720		720		725			740		750		4355
Unit price, Euro	4,80		4,80		4,80		4,80			4,80		4,80		4,80
Salary, Euro	3360,00		3456,00		3456,00		3480,00			3552,00		3600,00		20904,00
Social insurance, Euro	1040,93		1070,67		1070,67		1078,10			1100,41		1115,28		6476,06
Makeup artist salary
Production program, pcs.	210		210		210		220			220		230		1300
Unit price, Euro	5,00		5,00		5,00		5,00			5,00		5,00		5,00
Salary, Euro	1050,00		1050,00		1050,00		1100,00			1100,00		1150,00		6500,00
Social insurance, Euro	325,29		325,29		325,29		340,78			340,78		356,27		2013,70
Director's salary
Salary, Euro		2000,00		2000,00		2000,00		2000,00	2000,00		2000,00		12000,00
Social insurance, Euro		619,60		619,60		619,60		619,60	619,60		619,60		3717,60
Accountant salary
Salary, Euro		800,00		800,00		800,00		800,00	800,00		800,00		4800,00
Social insurance, Euro		247,84		247,84		247,84		247,84	247,84		247,84		1487,04
Solary of total		7210,00		7306,00		7306,00		7380,00	7452		7550,00		44204,00
Social insurance of total		2233,66		2263,40		2263,40		2286,32	2308,63		2339,00		13694,40
Contribution to the Guarantee Fund		7,21		7,30		7,30		7,38	7,45		7,55		44,19
Since hairdressers and make-up artists will be paid according to a unit wage form and the beauty salon plans to serve more and more clients every month, their wages will increase accordingly. A monthly salary will be set for the director and accountant. The director's salary will be 2,000 Euro and the accountant's - 800 Euro. The table also calculates the mandatory social insurance of employees, which is calculated by multiplying the accrued salary by 30.98 percent. The contribution to the Guarantee Fund is also calculated. It is calculated by multiplying the accrued salary by 0.1 percent. Direct costs per product Expense items Meas. pcs. 1 Month 2  Month. 3  Month. 4  Month. 5  Month. 6  Month. Haircut Direct materials costs Euro 4,96 4,96 4,96 4,96 4,96 4,96 Direct wages Euro 4,80 4,80 4,80 4,80 4,80 4,80 Social security contributions Euro 1,49 1,49 1,49 1,49 1,49 1,49 Total Euro 11,25 11,25 11,25 11,25 11,25 11,25 Makeup Direct materials costs Euro 4,31 4,31 4,31 4,31 4,31 4,31 Direct wages Euro 5,00 5,00 5,00 5,00 5,00 5,00 Social security contributions Euro 1,55 1,55 1,55 1,55 1,55 1,55 Total Euro 10,86 10,86 10,86 10,86 10,86 10,86 Direct material costs are calculated in Table 7, and direct wage and social security contributions are shown in Table 9. Direct unit costs are calculated by adding direct material costs, direct wage costs, and social security contributions. Direct costs for one haircut were €11.25, and for one makeup service, €10.86. Forecast of indirect production costs Expense items 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month Total 1. Production repairing of premises  650,00 650,00 650,00 650,00 650,00 650,00 3900,00 2. Auxiliary materials 955,83 910,83 910,83 910,83 910,83 910,83 5509,98 3. Equipment depreciation 228,11 228,11 228,11 228,11 228,11 228,11 1368,66 4. Costs for electricity to service equipment 490,02 505,00 568,13 574,81 559,42 561,93 3259,31 5. Electricity costs for lighting the premises 69,12 69,12 77,76 74,88 74,88 74,88 440,64 6. Costs for heating production facilities 233,50 233,50 220,00 - - - 687,00 7. Other indirect costs 105,88 105,88 105,88 105,88 105,88 105,88 635,28 Total of indirect production costs 2732,46 2702,44 2760,71 2544,51 2529,12 2531,63 15800,87 Indirect production costs are calculated by summing the rent of production premises, auxiliary materials (which are taken from Table 1 and distributed equally over six months), depreciation of equipment (calculated in Table 11.1), costs of electricity for servicing equipment (calculated in Table 11.2) and lighting of premises (calculated in Table 11.3), costs for heating production premises (calculated in Table 11.4) and costs for cold and hot water (calculated in Table 11.5). The rent for production premises is calculated by multiplying the area of ​​the production premises (50 sq. m) by the price of 1 sq. m (13 Euro) and is calculated including VAT. Appellation Quantity Initial value Liquidation value percentage Liquidation value, Euro Equipment depreciation, Years Annual depreciation amount, Euro Monthly depreciation amount, Euro Equitments Computers 1 2000 10% 200,00 5 360,00 30,00 Printer 1 400 10% 40,00 5 72,00 6,00 TV set 1 1900 10% 190,00 5 342,00 28,5 Coffee machine 1 1100 10% 110,00 5 198,00 16,5 Hair straightener 3 200 10% 20,00 5 36,00 3,00  Hair dryer 3 190 10% 19,00 5 34,2 2,85 Hair curling tongs 3 120 10% 12,00 5 21,6 1,8 Hair curlers 3     190 10% 19,00 5 34,2 2,85 Hair clipper 3 180 10% 18,00 5 34,2 2,85 in all: 19 6280 10% 628,00 5 1132,2 94,35 Furnitures strongbox 1 910 10% 91,00 6 136,5 11,38 Barber's work furniture, komplects  3 9000 10% 900,00 6 1350,00 112,50 Sofa 1 790 10% 79,00 6 118,5 9,88 Total 5 10700 10% 1070,00 1605 133,76 Depreciation of all equipment and furniture 2737,2 228,11   Depreciation of equipment and furniture  When calculating depreciation, a percentage of the liquidation value was chosen, which amounted to 10 percent. The useful life of the equipment in years was applied to each piece of equipment. The following formula was used to calculate the annual depreciation amount:         V1 - acquisition value of fixed assets;         V2 - liquidation value of fixed assets; T – useful life, in years. The depreciation amount for one month was calculated by dividing the annual depreciation amount by 12. Indicators 1 Month. 2 Month. 3 Month. 4 Month. 5 Month. 6 Month. Hair straightener Number of equitments 3 3 3 3 3 3 Power of electric motors unit, kW 0,025 0,025 0,025 0,025 0,025 0,025 Useful working time fund, hours 1008 1032 1161 1144 1170 1170 Price of 1 kW, Euro 0,45 0,45 0,45 0,45 0,45 0,45 Electricity price excluding VAT, Euro 34,02 34,83 39,18 38,61 39,49 39,49 Electricity price including VAT, Euro 41,16 42,14 47,40 46,72 47,78 47,78 Hair dryers Number of equitments 3 3 3 3 3 3 Power of electric motors unit, kW 0,1 0,1 0,1 0,1 0,1 0,1 Useful working time fund, hours 1392 1440 1620 1560 1612 1638 Price of 1 kW, Euro 0,45 0,45 0,45 0,45 0,45 0,45 Electricity price excluding VAT, Euro 187,92 194,4 218,7 210,60 217,62 221,13 Electricity price including VAT, Euro 227,38 235,22 264,63 254,83 263,32 267,57 Hair curling tongs Number of equitments 3 3 3 3 3 3 Power of electric motors unit, kW 0,085 0,085 0,085 0,085 0,085 0,085 Useful working time fund, hours 720 744 837 832 832 832 Price of 1 kW, Euro 0,45 0,45 0,45 0,45 0,45 0,45 Electricity price excluding VAT, Euro 82,62 85,37 96,04 94,35 95,47 95,47 Electricity price including VAT, Euro 99,97 103,3 116,21 114,16 115,52 115,52 Rodikliai 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month Hair curlers Number of equitments 3 3 3 3 3 3 Power of electric motors unit, kW 0,085 0,085 0,085 0,085 0,085 0,085 Useful working time fund, hours 720 744 837 832 832 832 Price of 1 kW, Euro 0,45 0,45 0,45 0,45 0,45 0,45 Electricity price excluding VAT, Euro 82,62 85,37 96,04 95,47 95,47 94,47 Electricity price including VAT, Euro 99,97 103,30 116,21 115,52 115,52 115,52 Hair clipper Number of equitments 3 3 3 3 3 3 Power of electric motors unit, kW 0,045 0,045 0,045 0,045 0,045 0,045 Useful working time fund, hours 1008 1032 1161 1118 1144 1144 Price of 1 kW, Euro 0,45 0,45 0,45 0,45 0,45 0,45 Electricity price excluding VAT, Euro 61,24 62,69 70,53 67,92 69,50 69,50 Electricity price including VAT, Euro 74,10 75,85 85,34 82,18 84,10 84,10 Computer Number of equitments 1 1 1 1 1 1 Power of electric motors unit, kW 0,2 0,2 0,2 0,2 0,2 0,2 Useful working time fund, hours 192 192 216 208 208 208 Price of 1 kW, Euro 0,45 0,45 0,45 0,45 0,45 0,45 Electricity price excluding VAT, Euro 17,28 17,28 19,44 18,72 18,72 18,72 Electricity price including VAT, Euro 20,91 20,91 23,52 22,65 22,65 22,65 Printer Number of equitments 1 1 1 1 1 1 Power of electric motors unit, kW 0,1 0,1 0,1 0,1 0,1 0,1 Useful working time fund, hours 24 24 27 26 26 26 Price of 1 kW, Euro 0,45 0,45 0,45 0,45 0,45 0,45 Electricity price excluding VAT, Euro 1,08 1,08 1,22 1,17 1,17 1,17 Electricity price including VAT, Euro 1,31 1,31 1,47 1,41 1,41 1,41 Rodikliai 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month Coffee machine Number of equitments 1 1 1 1 1 1 Power of electric motors unit, kW 0,3 0,3 0,3 0,3 0,3 0,3 Useful working time fund, hours 24 24 27 26 26 26 Price of 1 kW, Euro 0,45 0,45 0,45 0,45 0,45 0,45 Electricity price excluding VAT, Euro 3,24 3,24 3,65 3,51 3,51 3,51 Electricity price including VAT, Euro 3,92 3,92 4,42 4,25 4,25 4,25 Television set Number of equitments 1 1 1 1 1 1 Power of electric motors unit, kW 0,24 0,24 0,24 0,24 0,24 0,24 Useful working time fund, hours 192 192 216 208 208 208 Price of 1 kW, Euro 0,45 0,45 0,45 0,45 0,45 0,45 Electricity price excluding VAT, Euro 20,74 20,74 23,33 22,46 18,47 18,47 Electricity price including VAT, Euro 25,10 25,10 28,23 27,18 27,18 27,18 In all cost of electricity excluding VAT, Euro 490,02 505,00 568,13 574,81 559,42 561,93 Cost in all of electricity  VAT, Euro 592,92 611,05 687,44 695,52 676,90 679,94 To calculate how much electricity the equipment consumes, we need to know the useful working time fund, which is calculated by multiplying the shift duration by the calendar working days. We calculate the shift duration by multiplying the number of people served per month by the time required for one person to serve the equipment. Below, we provide an example of how we calculated the useful working time fund of a hair straightener. We calculated the useful working time funds of other equipment in a similar way. USEFUL WORKING TIME FUND 1) Hair straightener: It takes 5 minutes for one person to service with a hair straightener. Shift duration per month: 1 month served 500 people * 5 minutes = 42 hours;  2 month served 528 people * 5 minutes = 44 hours;  3 month served 520 people * 5 minutes = 43 hours; 4 month served 525 people * 5 minutes = 45 hours;  5 month served 540 people * 5 minutes = 43 hours; 6 month served 540 people * 5 minutes = 45 hours. Useful working time fund = calendar working days * shift duration.  1 month 42 * 24 working days = 1008 hours;  2 month 43 * 24 working days = 1032 hours; 3 month 43 * 27 working days = 1161 hours; 4 month 44 * 26 working days = 1144 hours; 5 month 45 * 26 working days = 1170 hours; 6 month 45 * 26 working days = 1170 hours.   When calculating the costs of electricity to service the devices, the following formula was applied: Price for electricity = number of devices * power of one device, kW * useful working time fund * price of 1 kW, Euro.   The electrical power output was determined separately for each device. Lighting of administrative and production premises. Lighting of administrative premises Indicators 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month In all Illuminated area, sq. m. 10 10 10 10 10 10 - Lighting duration, hours 8 8 8 8 8 8 - Lighting duration, days 24 24 27 26 26 26 - Lighting power rate, kW/m. sq. 0,016 0,016 0,016 0,016 0,016 0,016 - Electricity price, Euro 0,45 0,45 0,45 0,45 0,45 0,45 - Electricity value excluding VAT, Euro 13,82 13,82 15,55 14,98 14,98 14,98 88,13 Electricity value including VAT, Euro 16,72 16,72 18,82 18,13 18,13 18,13 106,64 Lighting of production premises Illuminated area, sq. m. 50 50 50 50 50 50 - Lighting duration, hours 8 8 8 8 8 8 - Lighting duration, days 24 24 27 26 26 26 - Lighting power rate, kW/m. sq. 0,016 0,016 0,016 0,016 0,016 0,016 - Electricity price, Euro 0,45 0,45 0,45 0,45 0,45 0,45 - Electricity value excluding VAT, Euro 69,12 69,12 77,76 74,88 74,88 74,88 440,64 Electricity value including VAT, Euro 83,64 83,64 94,1 90,60 90,60 90,60 533,18 In all of cost indoor lighting excluding VAT, Euro 82,94 82,94 93,31 89,86 89,86 89,86 528,77 In all of cost indoor lighting including VAT, Euro 100,36 100,36 112,91 108,73 108,73 108,73 639,82 The premises of the hairdresser K.Korenevskis individual enterprise "GrazuteRoom" are about 60 m2. The area for production premises is 50 m2 (where beauty salon services are performed), administrative premises are 10 m2. The company works six days a week, and each month on different days: the first and second months - 24 days, the third month - 27 days, the fourth, fifth and sixth months - 26 days each. Shift duration - 8 hours. When calculating the lighting costs of administrative and production premises, the following formula was used: Illuminated area * lighting duration, hours * lighting duration, days * lighting power rate kW/m. sq. ( 0.016) * electricity price, Euro (0.45 ct) . It is predicted that the costs of electricity for lighting the premises will amount to 88.13 Euro for administrative premises and 440.64 Euro for production premises, excluding VAT. The total lighting of all premises for 6 months will amount to 528.77 Euro, excluding VAT, and 639.82 Euro, including VAT. Heating of administrative and production premises. Heating of administrative premises Indicators 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month In all: Heated area, sq m 10 10 10 - - - - Heating cost per 1 sq. m, Euro 4,67 4,67 4,40 - - - - Value excluding VAT, Euro 46,70 46,70 44,00 - - - 137,40 Value including VAT, Euro 50,90 50,90 47,96 - 149,76 Heating of production premises Heated area, sq m 50 50 50 - - - - Heating cost per 1 sq. m, Euro 4,67 4,67 4,40 - - - - Value excluding VAT, Euro 233,5 233,5 220,00 - - - 687,00 Value including VAT, Euro 254,51 254,51 239,80 - - - 748,82 In all for heating excluding VAT, Euro 280,20 280,20 264,00 - - - 824,40 In all for heating including VAT, Euro 305,41 305,41 287,76 - - - 898,58 The heated area of ​​the administrative premises is 10 m2, the production premises - 50 m2. When calculating the costs of heating the premises, it was necessary to multiply the heated area by the heating price of 1 sq. m. It is expected that the heating will be for only two months, the heating price for the first two months will be 4.67 Euro per 1 sq. m, in the third month the price will decrease to 4.40 Euro. Thus, the heating costs of the administrative premises over three months will amount to 137.40 Euro, and the production premises - 687.00 Euro, excluding 9 percent VAT. Administrative and production costs for water. Administrative costs for water  Indicators quantity, m3 price, Euro In all Hot water 1 15,80 15,80 Cold water 2   3,84   7,68 Water excluding VAT, Euro - - 23,48 Water including VAT, Euro - - 25,59 Production costs for water Hot water 5 15,80   79,00 Cold water 7   3,84   26,88 Water excluding VAT, Euro - - 105,88 Water including VAT, Euro - - 115,41  In all excluding VAT, Euro - - 129,36 In all including VAT, Euro - - 141,00 It is expected that 1 m3 of hot water and 2 m3 of cold water will be consumed per month in administrative premises, 5 m3 of hot water and 7 m3 of cold water in production premises. The formula for calculating water costs is: 1 m3 of hot water * 1 m3 of hot water price + 1 m3 of cold water * 1 m3 of cold water price. Thus, the monthly water costs in administrative premises will be 23.48 Euro, and in production premises - 105.88 Euro, excluding 9% VAT. Forecast of cost of goods sold. Indicator name Units 1 Month 2 Month. 3  Month. 4 Month 5 Month 6 Month In all Haircut Direct costs (per service) Euro 11,25 11,25 11,25 11,25 11,25 11,25 67,5 Indirect costs (per service) Euro 5,33 3,75 3,83 3,51 3,41 3,38 23,21 Cost of one service Euro 16,58 15,00 15,08 14,76 14,66 14,63 90,71 Number of services sold Euro 700 720 720 725 740 750 4355 Total cost of services Euro 11606,00 10800,00 10857,60 10701,00 10848,40 10972,50 65785,5 Makeup Direct costs (per service) Euro 10,86 10,86 10,86 10,86 10,86 10,86 65,16 Indirect costs (per service) Euro 17,77 12,87 13,15 11,57 11,50 11,01 77,87 Cost of one service Euro 28,63 23,73 24,01 22,43 22,36 21,87 143,03 Number of services sold Euro 210 210 210 220 220 230 1300 Total cost of services Euro 6012,30 4983,30 5061,00 4934,60 4919,20 5030,10 30940,50 Total Euro 17618,30 15783,30 15918,60 15635,60 15767,60 16002,60 96726,00 The cost of goods sold was calculated by summing direct and indirect production costs and multiplying them by the number of services sold. The cost of one product was calculated by summing only direct and indirect costs. Direct costs per product were taken from Table 10, the number of services sold was taken from Table 8. Indirect costs were calculated by multiplying direct costs by the allocation coefficient. Allocation coefficient = Indirect costs / (Production scale × Direct costs per product). Haircut and makeup distribution coefficients. Service 1-month coefficient 2-month coefficient 3-month coefficient 4-month coefficient 5-month coefficient 6-month coefficient Haircut 0,47396317 0,3336346 0,34082840 0,31197057 0,30270736 0,30004504 Makeup 1,63661317 1,1849689 1,21051916 1,06500502 1,05856354 1,01354392 Price of services Service name Indicator 1 month 2 month 3 month 4 month 5 month 6 month Haircut Cost price 16,58 15,00 15,08 14,76 14,66 14,63 Surcharge, % 32,39 46,33 45,56 48,71 49,73 50,00 Surcharge, Euro 5,37 6,95 6,87 7,19 7,29 7,32 In All 21,95 21,95 21,95 21,95 21,95 21,95 In all with VAT 26,56 26,56 26,56 26,56 26,56 26,56 Makeup Cost price 28,63 23,73 24,01 22,43 22,36 21,87 Surcharge, % 14,60 38,26 36,65 46,28 46,74 50,00 Surcharge, Euro 4,18 9,08 8,80 10,38 10,45 10,94 In All 32,81 32,81 32,81 32,81 32,81 32,81 In all with VAT 39,70 39,70 39,70 39,70 39,70 39,70 The allocation coefficient changed every month, so the indirect costs changed accordingly. After adding up the direct and indirect costs, the cost of services was different every month, so we took the lowest cost of the 6 months and added a 50 percent markup to it. Operating cost forecast. Indicator name unit of meas.. 1 month 2 month 3 month. 4 month. 5 month. 6 month. In all 1. Director's Euro 2000 2000 2000 2000 2000 2000 12000 2. Hairdressers (3 hairdressers) Euro 3360,00 3456,00 3456,00 3480,00 3552,00 3600,00 20904,00 3. Accountants Euro 800,00 800,00 800,00 800,00 800,00 800,00 4800,00 4. Makeup artist Euro 1050,00 1050,00 1050,00 1100,00 1100,00 1150,00 6500,00 5. Lighting of administrative and common areas Euro 13,82 13,82 15,55 14,98 14,98 14,98 88,13 6. Depreciation of administrative and common use assets Euro 228,11 228,11 228,11 228,11 228,11 228,11 1368,66 7. Rent of administrative premises Euro 130,00 130,00 130,00 130,00 130,00 130,00 780,00 8. Heating of administrative premises Euro 46,70 46,70 44,00 - - - 137,40 9. Costs for cold and hot water Euro 23,48 23,48 23,48 23,48 23,48 23,48 140,88 10. Advertising Euro 333,33 333,33 333,33 333,33 333,33 333,33 2000 11. Communication costs Euro 90 90 90 90 90 90 540 12. Garbage removal Euro 50 50 50 50 50 50 300 13. Establishment costs related to operations Euro 262,00 262,00 262,00 262,00 262,00 262,00 1572 14. Current assets for administrative purposes before operations Euro 182,33 182,33 182,33 182,33 182,33 182,33 1094 15. Property insurance Euro 58,33 58,33 58,33 58,33 58,33 58,33 350 16. Advertising before activity Euro 2000,00 - - - - - 2000,00 17. Subscription  Euro 30,00 30,00 30,00 30,00 30,00 30,00 180,00 18.Taxes Euro 2240,87 2270,70 2270,70 2293,70 2316,08 2345,55 13738,59 19.1. Contributions to the Guarantee Fund Euro 7,21 7,30 7,30 7,38 7,45 7,55 44,19 19.2. Social insurance contributions for general and administrative personnel Euro 2233,66 2263,40 2263,40 2286,32 2308,63 2338,0 13694,4 Total Euro 12898,97 11024,80 11023,83 11076,26 11170,64 11298,11 68493,66 The salaries of the director, accountant, hairdresser and makeup artist are calculated in Table 9.1. The lighting of administrative and common premises is calculated in Table 11.3. The depreciation of administrative and common assets is taken from Table 11.1. The company rents premises at 13 Euro per 1 sq. m, so the rent of administrative premises is calculated by multiplying the area of ​​administrative premises and the price of 1 sq. m. The monthly rental costs are 130 Euro. The heating costs of administrative premises are taken from Table 11.4. The costs for cold and hot water are calculated in Table 11.5. Each month the company will have 333.33 Euro in advertising costs. Communication costs are estimated at 90 Euro each month. The company has an 8 m3 garbage container, the monthly removal of such a container is 50 Euro.  The establishment costs related to the operation, current assets for administrative purposes before the operation and property insurance are taken from the first table and the amounts are distributed equally over six months. Advertising before the operation is taken from the first table, which amounts to 2000 Euro. The company will subscribe to magazines and pay 30 Euro each month. Taxes are calculated in Table 9.1. Operating expenses are calculated separately each month, adding up all expenses. <<<  7.3. Summary Content / Financial section 7.1.  >>>