Bartlett Investment Group wants to invest capital in your business. What is a new product or enhance an existing product that will be profitable in its market.

• 1-2 page narrative in memo format that describes your product and how it will profitable.
  • Define product cost in terms of direct materials, direct labor, and manufacturing overhead costs. Determine what sales price will be. Remember the concepts & terms learned in Chapters 2 & 3.
  • Some things to think about:
    • What makes the product different?
    • Who will the consumer be?
    • How will the company market/sell your product?
    • Who are its competitors?
    • What are its product costs vs. period costs?
    • Discuss different activities in the value chain and how these activities add value to the product.
      • Research & Development, Design, Production, Marketing, Distribution, and Customer Service
• Use a best estimates to create an annual income statement for 1 year, which shows profit /loss for the product. Show calculations for direct materials used, cost of goods manufactured, and cost of goods sold.
• Please respond with a memo to Bartlett Investment Group with backup data and assumptions.