Accounting Case
3. How will you operate?
a) Will you purchase and sell the entire product, purchase parts and
assemble it, or manufacture it? Explain your choice.
PawSmart will purchase and sell the entire product. The pet food sector includes food and treats. Dog and cat food and treats will be the top sales item in all stores. The company tries to encourage the use of high quality, nutritious foods for animals.The company will stock only high quality name brands, as well as premium style pet foods not found in discount stores.
b) Buildings and equipment
1) Space needed, type, build or lease, location, cost, availability
Lease Retail Space in an affluent Eastside Community. Average household income 1 mile radius over $140,000 per year. Anchored by PCC Market. Located in the intersection of Avondale RD NE & NE 1116th St. Cars per day at intersection total over 34, 000.
Space Available 2,437 sf
Rental Rate $ 34 sf/ year = $82,858 year
Space Type: Strip Center
Lease Type: NNN
Gross Leasable Area: 39,228 sf
2) Equipment needed: list items, cost new, cost used, and availability
ITEMS
COST NEW
COST USED
AVAILABILITY
Racks
Shelves
12″ x 48″ BLACK LAMINATED MELAMINE SHELF – 62222
Laminated Shelf- 48 x 12 (Black)
$9.75 ea
48″W x 14″D UPPER SHELVES