PRODUCTION AND COSTS

For Module 1, you did research on consumer demand and pricing for your business idea.  Continue with the same business idea that you wrote about for Module 1, but now look at the cost side of your business.

Do some research on various potential start-up expenses for your business based on research on wages, office space rental rates, etc., in your home town.  More specifically, write a three-page paper answering the following questions:

1. What do you think the main expenses will be for your business?  Make sure to discuss labor, rent, equipment, and any other major expense you can think of.


2. Do some research on the internet or from your own personal contacts to get a ballpark estimate of how much the specific expenses are in your home town for the items that you listed in your answer to Question 1 above.  You can use Craig’s List or similar webpages to get an idea about wages for different positions that you may need to hire for, and there are many webpages that have advertisements for renting commercial property in different parts of the country.


3. Finally, break down your expenses into fixed plus variable costs.  Make sure to cite two of the required background readings as justification for your classifications of your different expenses into the fixed and variable cost categories.

SLP Assignment Expectations

Answer the assignment questions directly.

• Stay focused on the precise assignment questions. Do not go off on tangents or devote a lot of space to summarizing general background materials.


• Make sure to use reliable and credible sources as your references. Articles published in established newspapers or business journals/magazines are preferred. If you find articles on the Internet, make sure they are from a credible source.