* Note: The concept of adding lumber and hardware to the program to “recover the investment” enables the producer to make a certain number of pieces of furniture on the first production run. Once that furniture is sold, it could generate enough income to recover the investment. This concept is included for consideration and for illustration purposes only. Doesn’t represent any assurance of income. For these examples, it is used an equivalent number of Adirondack chairs (produced and sold) valued at its suggested retail price of $249 and a material cost of $60 per chair. Cost doesn’t include the producer’s time to make and sell the chairs nor indirect costs.

 

 

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