The

Business
Project

By: Maia Cherin

10th Grade Math at
High Tech High
With Mona K Samimi
February 2015

The Business Project

Table of Contents
1. Product Drawing
2. Product Proposal Letter
3. Product Proposal Portfolio Packet
4. Rough Drafts and Feedback from Peers
5. Starting a Business Packet
6. Maximizing Profits Practice Worksheet
7. Physcology Behind Advertisments
8. Requirements Paper

Product Proposal Letter

Adventure Pinning
DearInvestors,
Haveyoueverwantedtohaveeasyaccesstoadventuresinyourarea?Doyouconstantly
drivebycoolplacesthatyoucan'trememberthenamesof?Ifyes,thenadventurepinningisthe
perfectappforyou.Introducinganewanduniqueappthatisbothusefulandsocial.
Mynewapp
AdventurePinningisforeverytimeyoupassbyaplacethatyoudontactuallyhavetimeto
visit.Forexampleifyouwalkbyacoffeeshopthatyouwanttogoto,butdonthavetimeto
visitatthecurrentmoment,youcansnapapictureofitusingAdventurePinning,anditwillpin
thelocationonamap.Thenexttimeyou'reinthearea,theappwillnotifyyouofthepinthats
nearby.Onthisapp,youcanalsoviewwhatyourfriendshavebeenpinningandyoucanseethe
peoplewhohavebeenonthemostadventuresinyourarea.Theresalsoanadventuregenerator
buttonthatyoucanpresstoseeallthethingsthathavebeenpinnedinyourarea,allowingyou
easyaccesstoadventures.Youcanevensharephotosfromyourpinstosocialmedia.Mytarget
audienceforsellingthisappwouldbeteensandadults,astheyaremostlikelyinterestedin
tryingnewrestaurantsanddoingnewactivities.Thisappisoneofakindandrevolutionary.It
allowsforbettercommunication,encouragespeopletobemoreactive,andcanhelpsupport
localbusinesses.
ThewayIwillmakeaprofitonthisappisbyhavingapricetodownloadit.Tomakethis
app,itwillcost$100.Designingandbuildingtheappisfree,ifIdoitmyself.Afterdoingsome
research,Ilearnedthattodesignanapp,youcanusedifferentcomputerprogramsthatareeasily
accessible.Theonlyactualcostofmakingthisappwouldbeinthelicensingfee.Applecharges

a$100licensingfeeinordertosellyourappintheappstore.Because$100isaonetimefee,I
hadtofindwhattheunitcostwouldbe.Tofindthiscost,Ipredictedthenumberofpeoplewho
wouldbuymyapp,andthendivideditby100.TheunitpriceIcalculatedwas$2per,asIpredict
about50peoplewillbuyit.Inordertofindoutwhatmyoptimumpriceforsellingthisapp
wouldbe,Iwentandsurveyed51peopletotal,mainlyfromHighTechHigh,onhowmuchthey
wouldpaytodownloadit.Thepricerangewasfrom$2to$5,goingupin50centincrements.I
startedwith$2becauseitwasmybreakevenpoint.
Basedonmysurveydata,theoptimumpricetoselltheappatinordertogeneratethe
mostprofitwouldbe$3.50.Althoughthisseemslikeagoodpricetosellat,itisonlybasedon
ourscatterplotdata.$3.50wouldbethebestpricebasedonthesamplesizeof51peoplefrom
thescatterplotdata,nottherestofSanDiego.Sellingat$3.50wouldgiveusarevenueof
$59.50andaprofitof$25.50.Because$3.50isonlyaccuratebasedonthesamplesize,weneed
tofindtheparabolaofbestfit.Theparabolaofbestfitwouldgiveusourtwosolutionsanda
vertex.Thetwosolutionsshowuswhatapppriceswouldleaveuswithnoprofitordebt,orin
otherwords,thebreakevenpoints.Thesetwobreakevenpointswerearound$2and$6.30.This
showedmethatsellingtheappfortoolittleortoomuchcouldleavemewithnomoneyinthe
end.TofindthepricethatwouldactuallymaximizemyprofitsIlookedatmyvertex,which
showedmetheoptimumpriceforsellingtheapp.Thispricewas$4.10.Icametoaconclusion
that$4.10isanoddamounttopay,soIwouldraisetheapppriceto$4.50.Sellingmy
applicationat$4.50wouldprovidemoreconvenienceandwouldconvincepeoplethattheyare
gettingagooddealbecauseitisnot$5.Ifpeoplepurchasetheappat$4.50itwouldmaximize
myprofits,evenifIwouldnthaveasmuchdownloadersasIdidwhenitwas$2perapp.

IfIweretosellthisapp,inthefirstmonthIwouldmakeatotalprofitof$125.Thisis
becauseIpredict50peoplewillbuymyapppermonth.Sellingat$4.50,withaproductionprice
of$2,wouldallowmetomakeatotalprofitof$2.50perapp.IfImultiplytheprofitperappby
the50peoplewhowouldbuyit,thenIgetmy$125totalprofitforthemonth.Inthissetof
calculationsforthefirstmonth,Ifactoredinthe$100registrationfeebysettingthepriceof
productionperappto$2.Becausethis$100registrationcostisaonetimefee,itwouldnolonger
costmemoneytoproducetheappsinthefuturemonths.Mysellingpricewouldstillbe$4.50,
butmyproductioncostwouldbe$0.Thiswouldallowmetomakeaprofitof$4.50perapp.I
wouldstillestimatethatabout50peopleamonthwouldbuytheapp,andifImultiplythat50by
$4.50perapp,Iwouldmakeatotalprofitof$225fromthesecondmonthandonward.This
wouldmeanthatinthefirstyear,Iwouldmakeaprofitof$2,600.Inthesecondyear,Iwould
earn$2,700.
Inordertomakethisapppossible,Iwouldneedaloanof$200.Icanmaketheappfor
free,butitcosts$100toregistermyapplicationintheappstoreandIwouldwanttoextramoney
availableforunexpectedexpensesandmaybeeventosplurgeonthedesignoftheapp.Ihope
thatifmyappsalesaresuccessful,Iwillbeabletosavesomemoneyforcollege.Goingto
collegeissomethingveryimportanttome,asitwillsetmeupfortherestofmylife.Adventure
Pinninghasreallyinspiredme,andIthinkitwillinspireothersaswell.Overall,Ifeelthat
Adventurepinningwillbeaverysuccessfulappforboththeteenandadultpopulation.People
willbeabletocommunicatemorewithothersintheircommunities,localbusinesseswillget
morecustomers,andpeoplewillbeabletodiscovernewthingsintheirarea.

Psychology Behind Advertising

Withsomanyadvertismentscirclingaroundtheworld,howdosomecompanies
standout?Thereisafascinatingsciencebehindadsandwhatmakespeoplewantto
purchasethings.Advertisementscantapintoouremotions,ourbrains,andevenour
stomachs.Butwhatsthesecret?JustlookatfastfoodcompanieslikeMcDonalds,
Wendys,KFC,andPizzaHut.Theyallhavethecolorredintheirlogosbecauseitcan
stimulateappetite.Withoutusevenknowingit,wewillseeasignandautomaticallythink
werehungry.Psychologistsreportthatcolorimpressioncanaccountfor6070percent
ofconsumerreaction.(LoriBenoy)BrandnamessuchasChanelandPradauseblack,
white,silver,andgoldintheirproductsbecauseitenhancesourfeelingofsophistication
andluxury.Manybanks,cellphonecompanies,andothercorporationsuseshadesofblue
becauseitmakesusfeelasenseoftrust.Notonlydocolorsinfluenceorwillingnessto
purchaseitems,butsodoouremotions.Manycommercialsthesedaysforpetrescue
organizationsshowgraphicimagesofabusedanimalsandmakeusfeelguiltyifwedont
pickupthephonetodonate.Insurancecompaniesarealsonowshowingadsofkids
dyinginaccidentsaroundthehouseorincars.Thistapsintoparentsemotionsbecauseit
makesthemthinkabouttheonethingtheylovemosttheirkids.Manycompaniesare
nowalsohighlightingtheirflaws.Onewaycompaniesgaincredibilityfromcustomersis
bypointingouttheshortcomingsoftheirproducts.Anotherwaytoincreaseyourproduct
salesisbythinkingaboutyouraudience.Ifyourtargetaudienceisadultmen,youmay
wanttoconsiderwhoyouareusingasyourspokespersoninyouradvertisements.For
example,CarlsJr.oftenuseswomeninaprovocativewaytoinfluencemenintobuying
theirburgers.Orviceversaforwomen,withmoreretailrelatedproducts.Althoughyou
maynotnoticeithappening,youarebeinginfluencedbyeveryadyouwatch.All
advertisementspersuadeandinfluencepotentialconsumersbytappingintotheirbrains.

Sothenexttimeyougotobuyaproduct,thinkaboutifitsreallyyoumakingthe
decision.