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 much 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.

Question

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 much 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.

GPT 3.5 · Answer

a. The total amount of money I am willing to invest in this business is $500.

b. I am going to make and sell homemade candles. I have chosen candles because they are a popular and relatively inexpensive item that sells well during the summer season. Additionally, making candles allows for creativity and customization, making it a fun and engaging business venture.

c. My business will work by creating and selling handmade scented candles. To determine the cost of making each item, I will consider the cost of materials such as wax, wicks, fragrance oils, containers, and packaging. Let's assume the cost per candle is $2.50. This includes all materials and packaging expenses.

For selling each item, I will research the market prices for similar candles to set a competitive price. Considering the quality and uniqueness of my candles, I decide to sell each candle for $6.

d. By subtracting the cost to make each item ($2.50) from the selling price ($6), the profit per candle would be $3.50. Assuming I can produce and sell 200 candles during the summer season, the total revenue generated would be $1,200 ($6 x 200). Deducting the total production cost ($2.50 x 200) of $500, the total profit would be $700.

Based on these calculations, it is reasonable to expect that my candle business will be profitable. However, it is important to consider additional expenses such as marketing and promotion, as well as the demand and competition in the local market.