Objective: Keep The Golden Plunger Plumbing Co. solvent (Cash Reserve > $0) for as many days as possible. Survival means smart cash flow management and resource allocation.
Key Bookkeeping Concepts in Action:
- Fixed Costs (Overhead): The base daily cost of **-$150** covers constant overhead (van depreciation, insurance, admin, etc.). This is paid every day.
- Fixed Costs (Wages): Each plumber you hire for the day costs **-$100** in wages. This variable fixed cost is crucial to manage, as you pay regardless of jobs completed.
- Capacity & Backlog: Each plumber can complete a maximum of **2 jobs** per day. Jobs secured (new bookings + backlog) that exceed your daily plumber capacity are moved to the **Job Backlog** and must be completed on a future day.
- Cash Flow: Your primary goal is to generate enough daily revenue to cover both your Fixed Costs (Overhead + Wages) and any Variable Costs incurred on the jobs themselves.
- Cumulative P/L: The Cumulative Profit/Loss tracks the total net performance of the company over the entire simulation period.
- Emergency Risk (Random): Each day has a 25% chance of a high-risk emergency job with potentially high revenue but also high variable costs (e.g., equipment failure).
Challenge: Try to survive for **10 consecutive days** while maintaining a cash reserve above $5,000 for financial stability. (Starting Cash: $2,500)