Two ways that businesses can increase their profit:
1. Increase revenue
2. Reduce costs
*Tallest tower with the least cost is your goal.
*A tower that is 8 inches tall will receive $12,000
*If the tower can stand ALONE for 5 seconds you will receive an "integrity bonus" of $2,000
*If the tower can hold a piece of paper on top for at least five seconds you will receive a "strength bonus of $3,000
Fixed costs are the "white sheet" of paper, labor, property tax, insurance, labor (5 workers $20 each-contract), opportunity cost.
Variable costs are toothpicks, marshmallows, consulting, unused material, missing marshmallow, unused broken toothpick.
Discuss the business plan in your group.
Create a blueprint and estimate costs and revenue.
Specialize the labor--accountant, builder(s), quality control, supplier, etc
You can buy raw materials from Duffka THREE times.