Company makes Toothpicks

1. Outline the organizational structure you chose for the company and the reason for the choice.

2. Present your marketing strategy.

a) Identify the target market for your product and explain your marketing plan to engage your Target audience. Include a per month estimate of the marketing plan based on research performed of the various cost of marketing campaigns.

b) Calculate Total Product cost.

c) Identify the number of units to be produced in one month.

d) Calculate the Variable costs and Fixed costs related to Product cost per unit.

e) Calculate the Total Product cost per unit.

3. Determine the Sales price of your product.

a) Explain how your target audience will accept the sales price. Is your price too high, too low, or just right? Perform research to determine the Sales price of two competitive products.

b) How does your product compare in price and quality?

4. Present a Proforma Income Statement.

5. Calculate the following for one month of sales:

a)Total Revenue

b) Cost of Goods Sold

c) Gross Profit

6. Identify and quantify at least 2 Period costs incurred by your company.

7. Present a Proforma Income Statement for the one month of operations.

8. Analyze your Proforma Income Statement.

a) Is your company profitable? How could you reduce product cost?

b) How could you reduce period costs?

c) How would your operations be affected by the reductions you are considering?