1. HOT CHOCOLATE GRACIE GARCIA CALIFORNIA RIOS

2. OUR PRODUCT

3.  We choose to do a partnership business because we knew this product would need at least two people running it.  The money we earned was split in half so we each got the same amount of money.  This partnership was convenient for us because we each bought different ingredients for our product.  The disadvantage to this partnership is we had to split the profit; it would have been better to do it alone because all the money would have gone to one person but the product really required two people.  It sold well, people came up to us asking for more hot chocolate to be sold in the mornings. PARTNERSHIP

4.  It was convenient because the weather was perfect for a hot drink to warm your belly.  It wasn’t time consuming at all.  A big quantity of hot chocolate can be made all at once without having to make more multiple times.  People loved the idea of hot chocolate being sold in the morning. WHY WE SOLD THIS PRODUCT

5. INGREDIENTSAMOUNTPRICE TOTAL Milk1 gallon of milk$4.00 Napkins1 bag$2.00 Marshmallows2 bags$4.00 Whip cream2$10.00 Cups100$2.00 Cocoa1$5.00 Abuelita Hot Chocolate 1$4.00 Vanilla extract1$4.00 $35.00 SUPPLIES & PRICING

6.  We were going to make chocolate bars but to wait until it hardened and packaged it all it would have been time consuming so we gave that up to coming to school early and setting up to sell our product.  We’d make a higher profit because students and teachers would want something to warm their bellies. OPPORTUNITY COST

7.  When making the product we each made one pot of hot chocolate.  We had to come thirty minutes earlier to school because we couldn't sell during school.  We didn’t take orders; we just sold on the spot.  The hot chocolate was sold for $1.00 because it was an affordable price and nobody really caries change with them. PRODUCING THE PRODUCT

8. THE ADVERTISEMENT  The advertisement really helped because they saw the AD, got in a ‘LINE’, ready to buy their hot chocolate with their dollar out.

9.  Why did we chose to sell this product? We chose to sell this product because it was easy to make and it wasn’t time consuming. It was a perfect product for the weather.  How did demand play a part in your decision in pricing the product? We didn’t go around asking how much people would pay for a hot chocolate, so we priced it at one dollar because that is what people mostly have in their pockets here at school. Of course people were going to buy the product at one dollar nobody carries change anymore unless you carry a purse with you or a little change bag.  Analyze how you came up with the amount of product to produce? The amount we produced was just estimated. We made a medium sized pot of hot chocolate hoping it would sell and it did!! We sold out while there were still people in line waiting for their cup of hot chocolate.  Market system? Our market system was monopolistic competition because there were sellers selling a different product than us. Since the weather was a bit chilly more people bought hot chocolate from us, it was at a good price and we made a profit of $100.00 but since we split the money we each got $50.00.  Analyze the model you chose, why did you choose that model? How did it work out for you? If you started this business in real life would you chose the same product or do something else? We choose the partnership model because we thought it would be fun doing the project together and it turned out really good. If we were to start this business in real life we would stick to this product because it tastes amazing and if it went really good we could eventually sell this product cold for the summer.  QUESTIONS

10. ANY QUESTIONS?