What goes into a Slushie?With your group, brainstorm all the

costs associated with producing a slushie….

Two categories of expenses

• Consumables- items that are “used up” when producing the product

• Overhead- expenses to keep the business running, not part of the product

Consumables

• Cups• Straws• Ice• Flavoring

Overhead

• Electricity• Employee wages• Rent/Mortgage• Advertising• Insurance• Furniture

Consumables- The Breakdown

• Cups: $23/1,000 cups• Straws: $150/10,000 straws• Ice: $4.50/block (one block makes 10 small)

• Flavoring Process– Concentrate is purchased by the gallon ($32)– The concentrate is mixed with a sugar water

solution producing 2,730 oz of flavoring– Each small has 3 oz of flavoring

Overhead

• Note: Assume a 30 day month, approximately 150 small slushes are purchased per day

• Electricity: $125 month• Employee wages: $8/hour, 7 hour per day• Rent/Mortgage*• Advertising*• Insurance*• Furniture*• *for this activity, we will not include these expenses