Purpose: To walk through the steps in deciding on which product to manufacture and sell and at what price to sell. Requirements: There are 2 requirements to meet, a written report and an oral presentation. Please pay close attention to the details listed under each requirement. The grading rubrics can be found in Moodle. 1. Written requirement: this report should be no longer than 3 pages (excluding an appendix) and should summarize the following: 1. Selection of the product to design, manufacture, and sell. a. Product can be an existing product, an enhancement to an existing product, or a completely new product. You should describe the product in detail. b. Determine the component parts and their estimated costs. C. Research estimated manufacturing costs from labor and overhead. This will require research on the Internet or consulting with manufacturing companies (local or family-friend's, etc.). Explain where you got the basis for your overall costs. d. Calculate the product unit cost. 2. Determine the selling price using one of the techniques found in appendix A (market-based using price elasticity, absorption-based cost-plus pricing, value- based pricing, or target costing). State why you have chosen that specific technique. 3. A final income statement should be provided showing the expected income based on your selling price and your various expenses. 4. Discuss anything else to support your selected selling price. I should not have to ask "why", so back up all decisions including desired return, who is target market, who are existing competitors and how did that affect pricing decisions, what is the quality of your product in relation to competitors and is that due to the quality of your component parts & allowable labor costs, did you use a predetermined overhead rate to allocate fixed costs, will sales be coming from retail or on-line sales, does any aspect of ESG affect your pricing, etc? 5. Throughout the report, all calculations should be available either within the report or in an appendix. Provide references where needed.