CARL’S ELBOW GREASE clients. All paperwork, invoices, et cetera will be handled on his personal phone, tablet and laptop computer at home. Hence, there will be no building costs.
J. Carl’s Elbow Grease will invest in one commercial cargo van. J. Carl’s Elbow Grease logo (including name and phone number) will be painted on both sides of the vehicle.
J. Carl’s Elbow Grease will make an initial investment by purchasing a 2018 Dodge Ram Promaster City for $24,000, paying $350 per month for 60 months at an interest rate of 4.00%, having made an initial down payment of $5,000.
Paintmasters in Concord, California, has agreed to design and paint J. Carl’s Elbow Grease’s logo on its cargo van for $1000.
Gas, maintenance, insurance and car wash costs for the vehicle also need to be considered. If the van commutes an average of 35 miles per day, and drives on 150 days out of the year, that equals (the product of 35 miles per day and 150 days worked per year) 5,250 miles per year. The van gets 21 miles per gallon in the city and 28 miles per gallon on the highway—so let’s say 24 miles per gallon. According to Nikolewski (2018), the average price per gallon of gasoline in California for 2018 will be $3.10. Therefore, the estimated annual cost for fuel will be (5,250 miles driven per year divided by 24 miles per gallon; then 218.75 (miles driven per year) multiplied by $3.10 per gallon) $678.13. Insurance will be $300 for 6 months of coverage at the minimum rate—1 year, $600. If the van is washed once per month, and the cost per wash is $15, then the annual cost is