Frequently Asked Questions
Q: Do you believe the Midas Touch body spray supplies consumers with
an Economic Need or and Economic Want?
A: We strongly believe we are giving the public a want. Speaking
perfectly honestly you never “need” to smell good, but how many
women like to go on dates, go to work, or even go to the grocery store
smelling bad? Or, how many times do you have to do something last
minute and have no time for a shower? You can simply use the Midas
Touch spray, and voila, you smell like a fresh lavender field, or have the
succulent smell of vanilla surrounding you, what woman doesn’t love
that?
Q: If you decided to change your production levels for the next year,
and chose to make a large number of products and offered them for
sale, would your product be worth more or less?
A: Worth the same, because, again they can’t go bad so the leftovers
could simply be sold at a later date.
Q: What are some of your natural resources, capital goods and labor?
A: We use oils and minerals from all over the world. The bottles and
lids we use for the bottles, also we must buy the equipment for the
manufacturing of our products. We use production workers for
checking all the merchandise and making sure they’re in good
condition, and we have workers to man the machinery during
manufacturing.
Q: What are a few of your biggest rivals in regard to your Midas Touch
spray?
A: Hollister Co and Chanel have been slight rivals. But we believe our
product is original enough to where we don’t consider them rivals, but
rather business associates and we can learn from their mistakes.
Q: Describe how the theory of supply and demand might affect your
business if you chose to limit the number of products that you made
and offered for sale, therefore lowering the supply, would your
product be worth more or less.
A: Our product would be worth the same amount because we could
just buy fewer products, and sell the leftovers (if any) because they
cannot go bad or expire.
Q: If another company saw that you were having success and decided
to begin making a very similar product, would the demand for your
product go up or down? How might this affect the price you charged
for your product?
A: It would cause production to go down slightly, but we would be able
to lower the price if necessary and we could breakeven.
Q: How do you make your profit? $17.99 – ($2.50 + $5.00 + $7.25) =
$ 3.24 (Profit)
A: Well we charge $17.99 for the products, the price per bottle and
lid is $2.50, we pay a cost of $5.00 for mixing and importing the
scents (per bottle) and we must pay $7.25 for the employees
manufacturing the products, so we end with a profit of $3.24 per
bottle, leaving us with the option of lowering our prices if/when
competition comes.
$17.99 – ($2.50 + $5.00 + $7.25) = $ 3.24 (Profit)
Fan-freakin’-tastic
industries iNC.
 Surviving Business Cycles
The Business Cycles:
Expansion – they would affect our business in a positive way because we would expand to
different places.
Peak – positive outcome because our business would be at an economic high, but unfortunately
it has a chance of going down.
Contraction – negative outcome because we could lose workers, profit and even possible
customers.
Trough – negative outcome if we lose even more employees, and have a chance of the business
being closed.

How We’ll Survive:

Expansion – we would move to places where a lot of women shop for expensive scents and
perfumes.
Peak – we could use our profits for buying more popular scents for our sprays.
Contraction – we would need to either lower paychecks or fire workers, we would try to higher
people for less money to lead the business and retire a CEO or manager.
Trough – we would sell the least profitable factory to help stimulate our incomes.