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