Madeline and Harris have decided to start a new business. Madeline is a graphics art major who recently designed a unique and copyrighted design that could be appealing to baseball fans. Harris who is majoring in sports marketing loves the design, and convinced Madeline to test market her design on a baseball cap/ hat. After doing some research they decide lease an outdoor vendor space on Yawkey Way next to Fenway Park. The plan is to start with baseball caps using the design Madeline created and to market and sell these hats to people attending Red Sox games. If things go well they plan to add t-shirts and jackets later.
Madeline and Harris have collected some preliminary information:
Leasing space on Yawkey Way will cost $10,000 for the season
City fees and taxes will cost $2,500
- The cost to buy the hats with Madeline’s logo will be $5
- They plan to sell the hats at $20
- They are guessing sales will be between 25 and 40 hats a game
- They would like to make $5,000 each after paying for all costs and expenses
Madeline and Harris have agreed that they will also need to hire a person to manage the booth. They are planning to pay this person $15 an hour, and figure it will take 6 hours for each game.
Phase 1 Exercise
What other costs will they incur?
The other costs that they will incur are cost of direct material (like costs of ink and other material that will be used to print the design on the cap), general and administrative expenses (this will involve indirect costs like costs of utilities etc.), cost of insurance for the inventory, any depreciation on the assets being used.
Madeline and Harris will also have to market and promote their logo bearing baseball caps and hence marketing expenses will also be incurred by them.
Madeline and Harris have decided to start a new business. Madeline is a graphics art major...
Madeline and Harris have decided to start a new business. Madeline is a graphics art major who recently designed a unique and copyrighted design that could be appealing to baseball fans. Harris who is majoring in sports marketing loves the design, and convinced Madeline to test market her design on a baseball cap/ hat. After doing some research they decide lease an outdoor vendor space on Yawkey Way next to Fenway Park. The plan is to start with baseball caps using...
Madeline and Harris have decided to start a new business. Madeline is a graphics art major who recently designed a unique and copyrighted design that could be appealing to baseball fans. Harris who is majoring in sports marketing loves the design, and convinced Madeline to test market her design on a baseball cap/ hat. After doing some research they decide lease an outdoor vendor space on Yawkey Way next to Fenway Park. The plan is to start with baseball caps...
What are the major areas of change from the old design
to the new design? What do you think the major concerns will be of
employees and managers in the new design? Use the star model to
identify the transitions at each point of the star.
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And there was a buy-sell arrangement which laid out the
conditions under which either shareholder could buy out the other.
Paul knew that this offer would strengthen his financial
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night.
read the case study above and answer this question
what would you do if you were Paul with regards to financing,
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