Item	2001 Costs	2002 Costs	2003 Costs
Labor and Benefits	15,293,070	18,504,600	20,540,100
Rent	480,000	495,000	510,000
Utilities	426,500	439,300	452,500
Supplies	190,000	218,500	229,500
Travel	100,000	100,000	100,000
Postage	24,000	24,000	24,000
Internet Access	600,000	630,000	660,000
Banking Fees	2,500	2,500	2,500
Credit Card Processing	2,300,000	640,000	380,000
Decorating	25,000	25,000	25,000
Break Rooms	25,000	25,000	25,000
Telephones	100,000	115,000	130,000
Furniture	601,100	50,000	50,000
Wiring	500,000	25,000	25,000
Routers and Switches	170,000	5,000	5,000
Computers	1,320,000	200,000	200,000
Security	250,000	15,000	15,000
Internet Marketing	120,000	120,000	120,000
Other Marketing	2,000,000	2,500,000	2,500,000
UPS Systems (uninterruptible power supply)	150,000	5,000	5,000
Software	900,000	50,000	50,000
Total Annual Expense Budget	$25,577,170	$24,188,900	$26,048,600

 

Expense Detail Report

·        Labor and Benefits: Wages, Insurance/SS taxes, etc. = estimated 35% of wages.

·        Rent: WA site= 20,000 sq/ft. x $12/ft annually; UT site=10,000 sq/ft x $24/ft annually.

·        Utilities: Includes electric power ($98,500) and telephone ($328,000) charges.

·        Supplies: General office supplies, note pads, staplers, pens, etc.

·        Travel: Estimated costs of key personnel business travel expenses.

·        Postage: Estimated combined cost for UT and WA offices postage and shipping.

·        Internet Access: UT=4 x T3 lines at $5,000/mo.  WA=2 x T3 at $5,000/mo and 2 x OC3 at $10,000/mo.  Quoted by Qwest.

·        Banking Fees: Estimated $.10 per transaction.  Negotiating with US Bank.

·        Credit Card Processing: Based on 2% per transaction.

·        Decorating: Work environment enhancements.

·         Break Rooms: Refrigerator, microwave, coffee maker, table/chairs, etc.

·        Telephones: Purchasing two ACD Systems from Lucent Technologies.

·        Furniture:  Workstations, chairs, etc.  WA site=$369,300, UT site=$231,800 Quoted by Clone Systems, Inc.

·        Wiring: On-site communications wiring.

·        Routers and Switches: Quoted by Cisco.

·        Computers: Servers=$850,000/year leased from Dell Computers; Workstations=$470,000 purchased from Dell Computers.

·        Security: Hardware and equipment, fire alarm and security monitoring.

·        Internet Marketing: Cost through end of 2^nd Quarter 2001.

·        Other Marketing: Advertising via other media through end of 2^nd Quarter 2001.

·        UPS Systems: Battery backup for all servers for 1 1/2 hours from APC.

·        Software: All basic operating software for networks, workstations and credit card processing.