You are going to create a company that produces a wired computer mouse that uses a brand
new type of laser technology to allow for a greater degree of accuracy and response time. The
target market will be the gaming industry. The price to produce one unit is $35. Our product will
be the best in the market for accuracy and response time, but lacks in comfort and design. The
company will be selling their units on Amazon. The product will be produced in China and then
shipped directly to an Amazon warehouse. We will produce 25,000 units.
1. Identify the top gaming mouse competitors to our product on amazon. List their prices, then
find an optimal price point for our product based on our component cost and market appeal. (5
points)
2. Use an FBA calculator below to estimate the cost of the amazon fees that will occur for each
of the 3 competitors you found. Average these 3 values, and use this as your FBA cost per unit.
Also do research into the percentage of technology products at amazon get returned. Use this
value and estimate the amount of items that will be returned based on the production of 25,000
units. Find out the cost of a return fee to amazon and project the total cost of return fees for our
product. (10 points)
https://sellercentral.amazon.com/hz/fba/profitabilitycalculator/index?lang=en_US
3. Assume the off-shore manufacturing and shipping cost to send to amazon is 24% of our
products production cost. Find the cost of producing 25,000 units. (5 points)
4. Assume all labor is off-shored so their only administrative employee expenses. This amounts
to $155,000.00 for the quarter. Also assume we will sell all 25,000 units. Create a projected
income statement based off information from questions 1-4. Separate fixed and variable
expenses. (20 points)
5. For your top 3 companies: Company A made $11 million in revenue. Company B made $27
million. Company C made $18 million. Based our sales, create a pie chart demonstrating our
projected market share. (5 points)
6. Our company is expected to double our revenue every quarter. Calculate the amount of units
needed to be produced to meet the revenue projection of quarter XXXXXXXXXXpoints)
7. Import daily stock prices from Microsoft from the last 30 days and use a seasonality
forecasting tool to assume what the price of microsoft will be for the next 30 days. (20 points)
8. Read through 3 public companies press releases, 10-Q for Q3 2019 within the same industry,
and identify external reasons for growth or decay of said market. Then identify internal growth or
decay reasons for each individual company. (10 points)
9. Place all of this research on an excel document the excel model you create should be
flexible, and able to be reconfigured easily and quickly, as well in a condensed powerpoint
presentation. Maximum of 5 slides please. Neatness and readability will be taken into
consideration. (20 points)
10. Demonstrate any skills you have in finance using any tool of your choice. This skill can be
the ability to analyze, predict, breakdown, etc. It does not have to be complex, but it must be
useful. Explain why this skill is useful in depth, and what cases you have used it in. This is an
opportunity to show how your skills are unique to others. Be creative. (50 points)