1. Assume that Damon decides to start a party-planning business:
a. Identify two ways he could assess the cost of goods or services sold for this business.
b. Which costs, described in the case, will become part of Damon’s operating cost structure?
c. Make a list of additional items Damon will need to purchase to get his business off the ground. Research the cost of these items.
2. One of the reasons why Damon earned a substantial profit is because he convinced his personal contacts to provide their services at a discounted rate. If Damon decides to grow his party-planning business, do you think that he can continue to use this strategy? Why or why not? What would his costs have been if he had paid full price for everything?
3. At the end of the case, Damon describes how he profited as an individual from the experience of throwing the Halloween party. What do you think he meant by this? Is it possible to profit from something on a personal level, even if you do not necessarily earn a financial profit? Can you think of an example from your own life where this happened? Explain.