I am choosing to manufacture a Polaris ATV built for any
trail in the mountains.
Choose an item that you would like to manufacture. You do not actually need to manufacture
something, but will proceed through the assignment as if you were planning on
manufacturing the item you have selected.
The product should require materials and labor and be something that you
are familiar with in process from start to finish. The product must be useful and
marketable. You can choose something as
simple as making chocolate chip cookies, a type of craft, or something more
complicated. Consider production as if you were making the product from
beginning to end, and not as if using a kit.
Perform the following
1.Choose a product to manufacture and describe the
2.Prepare the following budgets for 1 quarter, broken down monthly,
regarding your chosen item:
•estimated direct materials budget
•estimated direct labors budget
•estimated manufacturing overhead budget
•estimated selling and administrative expenses
•estimated income statement.
3.Classify all manufacturing costs and selling and
administrative expenses as either variable or fixed.
4.Prepare a contribution margin income statement separating
all variable and fixed costs into their own categories.
5.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.
6.Identify what types of trends you should be aware of in
the industry and who the primary competitors are.
7.Answer the following question: If you had to improve the
bottom line, what would you do and what concerns would you have going forward?
8.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 whether to do this? What would
be the relevant costs that you would consider in this decision?
Your final project should be in the form of a paper, using
Microsoft Word, that addresses each of these different areas. Steps #1, 6, 7 and 8 will be in paragraph
form and Steps #2, 3, 4 and 5 will involve numerical calculations that should
be put into the form of a table in proper format and included as part of the
paper. You should show any calculations
in a table within Word. Your paper
should be 5-6 double-spaced pages (body of the paper) and follow APA
You should also cite at minimum 5-6 references, including
the course textbook. Include a properly formatted reference page. Be sure to
review the Portfolio Project grading rubric, which may be accessed through the
Course Information page.