Vanilla Rum Apple Butter Case Study

1. Product
• The product that I have chosen for this project is a food product, Vanilla Rum Apple Butter. Apple butter is made pretty much like apple sauce except you add spices or flavorings to it and slow cook it for multiple hours. Slow cooking apple butter for multiple hours will result in it becoming thick and spreadable. The Vanilla Rum Apple Butter would mainly be sold online and at local farmers market.
• My target market could potentially be a wide range of food consumers. The one target consumer would be anyone who likes apple butter and who is wanting to change it up a little bit from your average apple butter. Then you have your apple lovers, your rum drinkers and anyone who likes the flavor vanilla. You also have your morning
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The next batch, would cost less due to needing to buy only costs will be the apples and more jars. This is due to the apples are only ingredient that was completely used up and there won’t be enough jars left for the next batch.
In order to make Vanilla Rum Apple Butter, the following will equipment will be needed.
• Apple peeler - cost at Menard is $10.
~An apple peeler is the best to use to peel, cut and core the apples all at the same time.
• Large stockpot – can cost anywhere from $12 and up.
~Large stockpot pot is used to cook down the apples with the apple cider for thirty minutes.
• Large slow cooker - can cost about $50.
~ Large crockpot is used to slow cook the apple butter in for eight hours.
• Immersion blender - can cost anywhere from $10 or more.
~ An immersion blender is used to make the apple butter a uniform texture.
• Canning set: includes the water bath canner, the rack for the jars, a bubble remover, jar lifter, magnetic lid lifter, a jar wrench and a jar funnel – cost at Target is $35.
~The canning set is used to process the product in the mason jars to preserve the
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The rent expenses will be the rental of a commercial kitchen and the rental of a booth at the local farmers market. The rental of a commercial kitchen will cost about $20 dollars an hour. To make one batch of the product, it will take about 8 hours to complete. The cost to rent the kitchen to make one batch will cost about $160. I am going to estimate that the kitchen will be rented twice a month that will cost $320 a month and $3,840 for the year. No utility expenses will be incurred due to it will be included in the rental of the commercial kitchen. The rental of the commercial kitchen would be considered a mixed expense due to the cost of the hourly rate to rent the kitchen will stay the same (fixed expense) but the amount of hours spent in the kitchen will vary (variable cost). The less time or more time you spend in the kitchen will change the amount of rent you will pay. The rental of a booth at the local farmers market will cost about $550 for a six month season. The rental of the booth at the farmers market will be considered a fixed expense that you will pay at the beginning of the season and will not change even if you make it to every farmers market or don’t make it to every farmers market.
• Insurance for a small business can vary based on the coverage that is needed for the business. A small business could be spending anywhere from $1000 or more for insurance coverage per year. I am just going to

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