Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Any company but please make it simple. Create and imaginary company with a product that can be manufactured and sold Keep it a simple product.

Any company but please make it simple.

Create and imaginary company with a product that can be manufactured and sold
Keep it a simple product. Don't pick something with many parts.
You will be describing the making and selling of the product.
Think through the following:
Where will you make it - what costs are involved - materials, labor, rent, etc.
Who will make it. How long will it take. What equipment will you need?
Who do you sell to? How will you get it to your customers?
Will you need to rent a place to sell? Who will get paid to sell?
Sales commissions? Delivery costs, travel costs?
Can you make money?
1 List all the manufacturing costs? DM, DL Overhead
2 What are the fixed costs?
3 Variable costs?
4 List the non-manufacturing costs - period costs?
For example - selling costs, rent, salaries (incl your own)
5 Determine if you should use job costing or process costing
6 Determine a price to sell for using cost price volume
7 Determine breakeven sales numbers - Try various prices
8 Create a contribution margin income statement CVP
9 Put together a 12 month or 4 quarter budget with all the schedules in Chap 9
Sales budget, production, materials, labor ESPECIALLY Income Statement
10 Create a summary of what the product is, how you make it, how you sell
it, what you charge for it, what the competition is, and if your
budget shows you are going to make money.
I am a potential investor. Convince me to invest in your company.
Make up all numbers for costs and prices but try to keep them reasonable

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting The Impact On Decision Makers

Authors: Gary A. Porter, Curtis L. Norton

2nd Edition

0030270995, 978-0030270994

More Books

Students also viewed these Accounting questions

Question

What is the formula to calculate the mth Fibonacci number?

Answered: 1 week ago

Question

Describe the team dynamics at Facebook.

Answered: 1 week ago