Question

Task 1: You want to start a summer business to earn money. What will you do? You have to consider how much money you can afford to invest in this business, how much it will cost you to make each item, and how you're going to charge for each item. Research something that would be reasonable to make and sell with the start-up investment you have determined.

a. What is the total amount of money you are willing to invest in this business?
b. What item are you going to make and sell? Why?
c. Describe how your business will work. How much will it cost you to make each item? How much will you sell each item for?
d. Do you think your business will be profitable? Explain your answer.
a. What is the total amount of money you are willing to invest in this business?
A) $100
B) $500
C) $1,000
D) $2,000
b. What item are you going to make and sell? Why?
A) Handmade jewelry - popular and customizable
B) Homemade candles - trendy and in-demand
C) Customized T-shirts - personalized fashion
D) Small potted plants - green and eco-friendly
c. Describe how your business will work. How much will it cost you to make each item? How much will you sell each item for?
A) Cost: $5, Sell: $15
B) Cost: $8, Sell: $20
C) Cost: $10, Sell: $25
D) Cost: $15, Sell: $30
d. Do you think your business will be profitable? Explain your answer.
A) Yes, because of high demand and low competition.
B) Yes, if I effectively market my products.
C) Maybe, depending on market fluctuations.
D) No, because the product cost is too high.

Answer 1

A student could reasonably start a summer business with a $500 investment by selling customized T-shirts for $25 each, costing $10 to produce, potentially making the business profitable through effective marketing.

Step-by-step explanation:

Starting a summer business requires careful consideration of the initial investment, production costs, and pricing strategies to ensure profitability. For this example, let's choose a moderate initial investment option of $500 (Option B). Considering this amount, producing customized T-shirts (Option C) could be a viable option because it allows for personalized fashion, appeals to a wide range of customers, and can be started with a relatively small investment.

To describe the business workings, the cost to make each shirt will be $10, and the selling price will be $25 (Option C). This provides a profit margin of $15 per item, before considering additional costs such as marketing, labor, and other overhead expenses. To ensure profitability, effective marketing strategies and maintaining a keen eye on costs will be critical.

As for profitability, it's reasonable to believe the business could be successful (Option B), especially if the products are marketed effectively. Demand for customized apparel is generally strong, and if you can differentiate your brand and products, the market potential is significant.