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ACT305 Portfolio Description

Portfolio Assignment (350 points)
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 steps:
1. Choose a product to manufacture and describe the manufacturing process.
2. Prepare the following budgets for 1 quarter broken down monthly regarding your chosen item:
• estimated sales budget
• 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 3-6
double-spaced pages (body of the paper) and follow CSU-Global Guide to Writing and APA
Requirements. You should also cite at minimum three credible references. Include a reference page.

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