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- Choose a product to manufacture and describe the manufacturing process.
- Prepare the following budgets for 1 quarter, broken down monthly, regarding your chosen item:
- estimated sales budget
- estimated direct materials budget
- estimated direct labors budget
- estimated manufacturing overhead budget
- estimated selling and administrative expenses
- estimated income statement.
- Classify all manufacturing costs and selling and administrative expenses as either variable or fixed.
- Prepare a contribution margin income statement separating all variable and fixed costs into their own categories.
- Determine the breakeven point in units and dollars. Also determine the number of units and dollars that need to be sold to make a target profit of $5,000 a month.
- Identify what types of trends you should be aware of in the industry and who the primary competitors are.
- Answer the following question: If you had to improve the bottom line, what would you do and what concerns would you have going forward?
- Choose a piece of equipment that you might consider purchasing to increase production of your item and address the following questions: What types of capital budgeting factors would you look at when deciding wh
