BIRZEIT UNIVERSITY

MASTER OF BUSINESS ADMINISTRATION PROGRAM

MANAGERIAL ACCOUNTING $631$

ASSIGNMENT No$.1$

FALL SEMESTER $2023$

Haya is considering a business venture$-$selling custom$-$embroidered T$-$shirts from a pushcart kiosk at University Market. The T$-$shirts will be available in $12$ different colors and one$-$size fits all. The T$-$shirts unique feature is that almost any name, phrase, or logo$,$ can be stitched onto the T$-$shirt while the customer waits. Thus, a customer can obtain a T$-$shirt with his or her own name, special saying, or favorite logo in a wide variety of thread colors, sizes, and fonts. Based on preliminary market research and input from the franchising company, Haya plans on selling each embroidered T$-$shirt for $$20.$

Haya plans to acquire the necessary technology by obtaining a franchise from KM Company. KM Company sells all of the necessary equipment and technology and provides the inventory of Tshirts and other supplies. In addition, KM Company trains prospective franchisees such a Haya in the basics of running the business and operating the machines.

Haya will need to buy the T$-$shirts from KM Company for $$4$ per T$-$shirt and pay a royalty to the franchising company of $$2$ per T$-$shirt sold. In addition, Haya believes that each T$-$shirt will use about $$2\mathrm{.}50$ worth of supplies $($including thread, replacement of sewing needles, machine maintenance, etc.$).$ Finally. KM Company requires that each franchisee invest $$250$ per month on leaflets and brochures to advertise the product.

Hava discovers that University Market would supply her with the pushcart and all of the necessary

hglish $($United States$)$

$(1)$ Accessibility: Good to go

$16$