Create Your Own Business Project Assignment 1: Business Proposal (20 pts.)
Please answer the questions below. Every item needs a detailed explanation. This should be in
complete sentences.
1. Name of your business
2. Hours you will be open. List specific days and times.
3. What do you do? (Fix, sell, build, feed, serve, help?)
4. Location of the business. Is it a small, rural community or a large, urban community? Where
in the town will you be located? Actually choose a location. Explain why that location will be
good for your business.
5. Identify the competition businesses that do the same thing) in your business area and
location. Explain how you will beat your competition. (ie offer sales, free food to get them in the
door, coupons etc)
6. How many employees will you need? You must have at least 3. What specific positions will
these employees hold? What will their salary or wage be? (ie how much money do they make
per hour or are they salaried meaning make a certain amount of money a year)
7. Why do you think your business will succeed?

Oakmont company has an opportunity to manufacture and sell a new product for a four-year period. the company’s discount rate is 18%. after careful study, oakmont estimated the following costs and revenues for the new product: cost of equipment needed $ 230,000 working capital needed $ 84,000 overhaul of the equipment in year two $ 9,000 salvage value of the equipment in four years $ 12,000 annual revenues and costs: sales revenues $ 400,000 variable expenses $ 195,000 fixed out-of-pocket operating costs $ 85,000 when the project concludes in four years the working capital will be released for investment elsewhere within the company. click here to view exhibit 12b-1 and exhibit 12b-2, to determine the appropriate discount factor(s) using tables.

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?

Large public water and sewer companies often become monopolies because they benefit from although the company faces high start-up costs, the firm experiences average production costs as it expands and adds more customers. smaller competitors would experience average costs and would be less