TEAM PROJECT (100 points)
For the team project, you are to create a business that manufactures a single product. You are required to introduce your product, identify the cost structure, set the selling price, and then generate budget for one year.
1. Proposed business and product due 11/01/2017
(1) Form teams of 5 members each.
(2) Create a business that manufactures ONE single product.
(3) Select ONE member of the group to email me what product you plan to make and sell by Wednesday, Nov 1st. If two groups happened to propose a same product, the group that emailed me later would be asked to propose a different product to analyze.
2.Presentation on 12/04/2017
(1) 15 minute presentation per group
(2) the whole class will vote for the best product idea and presentation
(3) peer rating – your colleagues in your team will evaluate your individual contribution towards the project in terms of reliability, contribution, and etc.
(4) The presentation shouldaddress, at a minimum, the following points:
· Summary description of your business and your chosen product, and overview of the manufacturing process of the product.
· Estimate the cost of a sellable unit of that product. In particular, identify and estimate the following product costs that we have encountered in this course: (a) direct materials, (b) direct labor, and (c) manufacturing overhead, including indirect materials, indirect labor, and any other applicable costs such as rent, depreciation, insurance, utilities, etc. Note that it may be difficult to quantify all components of your product’s manufacturing overhead costs. For components that are too difficult to quantify, describe why you were unable to obtain an estimate of the component cost.
· Project annual cost structure by identifying the fixed and variable costs. Show your spreadsheet describing the cost structure and sales price estimation by inserting the table(s) in the appropriate section of the report.
· Identify the current selling price of your product, and estimate sales volume per year. Then, using your estimated product cost, calculate an estimate of the gross profit earned on a unit of your product. Please describe how you obtained or calculated the product’s unit selling price and the product’s estimated gross profit.
we have already decided we want to manufacture can drinks