Business Description

After taking business classes, Jake, an avid dog-lover, decided to start selling unique pet supplies at trade shows. He has two products:

Product 1: "Launch-it"- a tennis ball thrower that will sell for $10.

Product 2: "Treat-time"- an automatic treat dispenser that releases a treat when the dog places his paw on the pedal. The treat dispenser will sell for $30.

Costs: Jake has hired an employee to work the trade show booths. The work contract is $1,000 per month plus a commission equal to 10% of revenue. Jake will also spend $500 per month on trade-show entry fees. Jake is purchasing the products from a supplier in Mexico. Launch-its cost $1 each; Treat-times cost $7 each. Shipping and handling on the Launch-its will cost $2 each; Shipping and handling on the Treat-times, which are heavier, will cost $8 each. The shipping and handling costs will be paid by Jake, not the customer.

Assume Jake expects to sell 200 Launch-its and 100 Treat-times during his first month of operations (June).

Jake's financial goal is to earn an operating income of $8,000 per month. He believes volume may grow at a rate of 5% a month.

ASSUMPTIONS
Product #1:	Launch-it
Sales price per unit
Variable costs per unit:
cost per product
Shipping per product
Commision (10% of revenue)
Total variable cost per unit
Monthly volume
Product #2:	Treat-time
Sales price per unit
Variable costs per unit:
Cost per product
Shipping per product
Commision (10% of revenue)
Total variable cost per unit
Monthly volume
Fixed costs per month:
work contract
trade show entry fees
Total fixed costs per month
Target profit per month
Expected change in volume (%)