(For practice only)

Product is M & M's

Please assume that you are creating a product.For your product, please perform the following:

1) Identify at least ten costs related to your product (Direct materials, Direct labor, Overhead, Period costs) - you much use each category at least once. Determine the value of each of these costs on a per unit level. Refer to lecture for additional explanation.

2) List each of your costs to determine the Total Product cost of your product.

3) Determine a reasonable Sales price for your product.

4) Determine the amount of Target profit you would like to earn from this product for each of the next three years.

5) Calculate Break-even based on your Target profit for each of the three years.

6) Produce a proformaIncome statement for each of the three years.