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Group Project – Phase One Due: October 19
The purpose of this group project is to help you integrate the managerial accounting concepts we cover in class and apply them to a real-world business setting. This project contains two phases.
In the first phase, you will analyze your costs and come up with a cost formula for your business.
In the second phases, you will make sales forecast, conduct cost-volume profit analyses, prepare budgeted financial statements, and come up with strategies to improve the profitability of your business. After you complete all phases of this project, you will have good understanding of how managerial accounting tools can help managers run a business.
Group Policy:
This project is to be done in groups of two students. No individual work will be accepted.
Collaboration Policy:
You CANNOT discuss any portion of this project with anyone outside of your group other than the instructor for this course. Any exchange of information with anyone other than the instructor for this class, whether orally, in writing, or electronically, will be considered a violation of the academic dishonesty policy of this class.
Business Description:
Your project group will assume the role of young entrepreneurs to start a small company. Your company will rent a retail cart inside the Stoneridge Mall to buy plain T-shirts and imprint them with one of the twelve beautiful pictures exclusively designed for your company by a famous artist who is a friend of yours. He has agreed to design twelve super attractive T-shirt pictures for you each year at a special discount. Your target customers are teenagers and young adults who have your kind of good taste. Your business is scheduled to launch on January 1, 2016.
Cost information:
1) Stoneridge charges you $2,500 rent per month, which includes utilities, telephone, cleaning, and maintenance. You

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