Semester Project 30 Points - 10 extra for class presentation Due May 18 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. You can do this by yourself or in a group of 2 or 3 - No more than 3 Think through the following: Where will you make it - what costs are involved - materials, labor, rent, etc. Who will make it. How long will it take. What equipment will you need? 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 Variable costs? 4 List the non-manufacturing costs - period costs? For example - selling costs, rent, salaries (incl your own) 5 Determine if you should use job costing or process costing 7 Determine a price to sell - try it out using cost price volume 8 Determine breakeven sales numbers 9 Create a contribution margin income statement CVP 10 Create a 4 quarter budget with all the schedules in Chap 9 Sales budget, production, materials, labor ESPECIALLY Income Statement 11 Create a summary of what the product is, how you make it, hov it, what you charge for it, what the competition 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 Semester Project 30 Points - 10 extra for class presentation Due May 18 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. You can do this by yourself or in a group of 2 or 3 - No more than 3 Think through the following: Where will you make it - what costs are involved - materials, labor, rent, etc. Who will make it. How long will it take. What equipment will you need? 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 Variable costs? 4 List the non-manufacturing costs - period costs? For example - selling costs, rent, salaries (incl your own) 5 Determine if you should use job costing or process costing 7 Determine a price to sell - try it out using cost price volume 8 Determine breakeven sales numbers 9 Create a contribution margin income statement CVP 10 Create a 4 quarter budget with all the schedules in Chap 9 Sales budget, production, materials, labor ESPECIALLY Income Statement 11 Create a summary of what the product is, how you make it, hov it, what you charge for it, what the competition 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
