Set up Sarah's month-long business simulation and learn how to read the inventory scoreboard
Scan the Month Before It Starts
You are stepping into Sarah's month before the accounting rules are explained. Read the setup first, then decide where the business pressure shows up.
12 kits
Sarah starts the month with kits already on the shelf from an earlier batch.
$1,200
Every new order uses cash before the kits are ever sold.
Beginning Inventory + Purchases - COGS = Ending Inventory
This is not today's full lesson. It is the scoreboard Sarah will need to defend by the end of the unit.
Your job:
Before you run the month, scan each event and decide what Sarah is probably feeling first: cash pressure, shelf-value pressure, or margin pressure.
Event 1: Buy 10 new kits
Sarah orders 10 more launch kits at $20 each. That is higher than the $18 cost in her opening batch.
Event 2: Sell 8 kits
TechStart sells 8 kits at $38 each. The bookkeeper has already attached $144 of cost to these sold kits.
Event 3: Buy 6 more kits
Sarah buys 6 more kits at $22 each after supplier prices rise.
Event 4: Sell 7 kits
TechStart tests a slightly higher selling price and moves 7 kits at $40 each. The assigned cost for those sold kits is $140.
Why this matters before the lesson gets technical
Sarah is not feeling "inventory theory" right now. She is feeling pressure in real time: cash getting tied up, margin being tested, and shelf value becoming harder to explain.