Create an 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 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. What are the variable costs?

4. List the non-manufacturing costs - period costs? For example: selling costs, rent, salaries (including your own)

5. Determine if you should use job costing or process costing.

6. Determine a price to sell. Try it out using cost price volume.

7. Determine break even sales numbers.

8. Create a contribution margin income statement (CVP).

9. Create a 4-quarter budget with all the schedules Sales budget, production, materials, labor especially income statement

10. Create a summary of what the product 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.