Back to School

All right, 11:00.
But I'm gonna talk to that dean.

These classes can be
a real inconvenience.

All right, settle down, people.
We've got a lot to cover,
and time is short.

There are two kinds of people
in business today...

the quick and the dead.
So, rather than waste
your time this semester...

with a lot of
useless theories...

we're going to jump right in
with both feet...

and create a fictional company
from the ground up.

We'll construct
our physical plant...

we'll set up
an efficient administrative...

and executive structure...
then we'll manufacture
our product and market it.

I think you'll find it very
interesting and a lot of fun.

So, let's start by looking
at construction costs...

of our new factory.
What's the product?
That is immaterial...
for the purposes
of our discussion here...

but if it makes you happy...
let's say we're making
tape recorders.

Tape recorders?
Are you kiddin'?

The Japs will kill us
on the labor costs.

OK, fine.
Then let's just say
they're widgets.

What's a widget?
It's a fictional product.
It doesn't matter.

Doesn't matter.
Tell that to the bank.

Take it easy.
It's the first day.

On the board,
you will see a cost analysis...

for construction of
a 30,000 square-foot facility...

which will encompass
both factory and office space...

and is fully serviced
by all utilities...

a railroad spur line
and a four-bay shipping dock.

Hold it, hold it. Why build?
You're better off leasing...

at a buck and a quarter,
a buck and a half a square foot.

Take your down payment
and put it into CDs...

or something else you can roll
over every couple of months.

Thank you, Mr. Melon...
but we'll be concentrating
on finance...

a little later in the term.
For the time being,
let's just concentrate...

on the construction figures,
shall we?

You'll see the final bottom line
requires the factoring in...