Suppose you have decided to start a business producing andselling a product of your choice from the following options: custombirthday cakes, lawn mowers or sports jackets.
For your essay, answer the following questions related to yourproduct:
Briefly describe the product you would produce and sell. Whatmarket will you target this product for? At what price would yousell your product? Make a projection of your sales in units for thefirst year of operations.
Make a detailed list of the materials needed to make yourproduct. (Use the textbook and/or outside research as necessary.)How much in materials will you need for the year? What is the costof these materials?
Make a list of expenses you would incur in your businessventure. (Use the textbook and/or outside research as necessary.)Examples include rent, utilities, insurance, direct labor,manufacturing overhead costs and so on. Estimate the cost of eachof these expenses per year.
Classify all of your expenses as either fixed or variable andcalculate how many units of your product you would need to sell tobreak even.
How much operating income would you like to earn in the firstyear? Calculate how many units you would need to sell to meet yourtarget profit.
How realistic is your potential venture? Do you think yourtarget profit is achievable? Explain.
Suppose you have decided to start a business producing andselling a product of your choice from the following options: custombirthday cakes, lawn mowers or sports jackets.
For your essay, answer the following questions related to yourproduct:
Briefly describe the product you would produce and sell. Whatmarket will you target this product for? At what price would yousell your product? Make a projection of your sales in units for thefirst year of operations.
Make a detailed list of the materials needed to make yourproduct. (Use the textbook and/or outside research as necessary.)How much in materials will you need for the year? What is the costof these materials?
Make a list of expenses you would incur in your businessventure. (Use the textbook and/or outside research as necessary.)Examples include rent, utilities, insurance, direct labor,manufacturing overhead costs and so on. Estimate the cost of eachof these expenses per year.
Classify all of your expenses as either fixed or variable andcalculate how many units of your product you would need to sell tobreak even.
How much operating income would you like to earn in the firstyear? Calculate how many units you would need to sell to meet yourtarget profit.
How realistic is your potential venture? Do you think yourtarget profit is achievable? Explain.
