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Create-a-Business Project
Economics Project

(click HERE to view more pictures from the flea market)

DETAILED DESCRIPTION

The entrepreneur will invent a new product that he or she will sell at the Debbie Hayes Memorial Flea Market which will be held at the Trailblazer Convention Center on Thursday, April 6, 2000.  Vendors will be able to purchase a booth at the convention center in order to sell their items.   Also,  all participating vendors will be able to purchase the products created by other vendors using "Blazer Bucks."  The product sold should be a new idea or an improved version of an existing item.  The following steps should be used in order to complete the project:

Step 1 - Entrepreneurship

Think of a product that you could make and produce, to be sold at the flea market.  At least ten (10) items must be produced and the items should not have cost more than $6.00 to create in total (not including sales tax).  Why will you create and produce the product which you chose to produce?  (If you decide to use a partnership,  your minimum item number increases to twenty (20) and your cost limit is raised to $12.00).  Complete the attached COST FORM.

Step 2 - Business Ownership

Now that you know what you want to produce, think of how your business will be owned.  Will you have sole ownership (sole proprietorship) or will you find a partner to assist in the production of your product (partnership)?   Perhaps you will decide to have a corporation handle your business.  If you decide on a corporation, you must provide: (1) the name of the corporation, (2) the location of the corporation, (3) the number of shares of stock available to be sold, and (4) the price per share of the stock. REMEMBER to be REALISTIC!!! (You are only making items which will cost $6.00 to produce).

Step 3 - Production

The "factors of production" must now be combined in order to produce your product Make certain to provide the following figures:

Number of Items Produced (Fig A) _________
Cost of ALL Items to Produce (Fig B) __________
Cost per Item to Produce (Fig B divided by Fig A = Fig C) ____________

Step 4 - Advertisement

Now that the item has been produced and the costs have been analyzed, you must determine a SUGGESTED RETAIL PRICE at which to sell each item. Your suggested retail price is ______________.  Also, a poster should be create which will advertise your product at the flea market. PLEASE NOTE that the cost of the poster board MUST be included in your cost limit!

Step 5 - Sales

On Thursday, April 6, 2000 the Debbie Hayes Memorial Flea Market will be held at the Trailblazer Convention Center in York County, Virginia. You will be allowed to purchase a vendor pass so that you can sell your products! While you are selling your items you MUST record at what price you sold EACH of your items! Following the flea market, you should make a listing of the prices which your items sold for and how many sold for each price. Then you should be able to provide the following figures:

Total Money Made at Flea Market (Fig D) ____________
Total Profit (Fig D minus Fig B = Fig E) ___________
Profit Made per Item (Fig E divided by Fig A = Fig F) _____________
 * Profit earned per share of stock (Fig E divided by # of shares = Fig G) ______________
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* This is ONLY for those businesses owned by a corporation.
 
 

Create-a-Business
Report on Project
DUE: Friday, April 14, 2000

In order to summarize what was learned in this activity,  you must prepare a detailed report which contains the following:

1. COVER PAGE (title page).

2. ENTREPRENEURSHIP -  Describe, in detail, what your product was.  Why did you choose to create the product which you created?

3. BUSINESS OWNERSHIP - Describe,  in detail, a description of the type of business ownership you used.  What are the advantages to this for of ownership?  What are the disadvantages?

4. CORPORATION INFORMATION (Only for those persons who chose the corporation method of business ownership) - List the (a) name of the corporation, (b) the location of the corporation, (c) the number of shares of stock available to be sold, and (d) the price of each share of stock.

5. COST FORM

6. SALES SUMMARY - Provide a detailed description of your experience at the flea market.  Describe any alterations in your product pricing.

7. DEMAND CURVE - Create a LINE graph which shows at what prices your products were sold.

8. SALES FIGURES - Label (clearly) each of the following:

Number of Items Produced (Fig A) _________
Cost of ALL Items to Produce (Fig B) __________
Cost per Item to Produce (Fig B divided by Fig A = Fig C) ____________
Total Money Made at Flea Market (Fig D) ____________
Total Profit (Fig D minus Fig B = Fig E) ___________
Profit Made per Item (Fig E divided by Fig A = Fig F) _____________

If you used a corporation form of business ownership:
Profit earned per share of stock (Fig E divided by # of shares = Fig G) ______________
 
 

* * * All of the above should be typed (or word processed) using 10-12 pt conservative styled font.  DO NOT turn in the project in a plastic cover or binder.  If you do, it will be returned to you UNGRADED.  The project should be done on  white typing (copier) paper,  stapled in the upper LEFT corner.

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