Weekly Log # 2

Name: Ryan Clott               Date: 11/22/02         Team Name :  Engineering Inc.                      
What was the focus of this weeks problem solving?

Our focus was determining the finance and marketing of the production and sale of our automobile.
What did you accomplish?  What Materials were used?

I made graphs for all of the questions that were responded to in our survey and we filled out a finance and marketing report.
What are your next plans for the project?

I plan for us to go a little deeper into the finance and marketing and then start working on the car itself.
Are you satisfied with the groups progress?  What would you change?

I am satisfied with the group's progress.  We are moving at a steady rate.

Finance

 

  1.  List three issues your marketing report should be concerned with: (answer those concerns with your survey info.  Make sure it goes into marketing report.)

 

Ø      The income level of the target market or population.  In our case the income level is high because people are wealthier in our target age group.

Ø      The price that the target market is willing to pay for a product.  For us our car will be priced above $30,000 because people in our target market can afford it overall.

Ø      The competition that provides similar products to the target market.  Other companies that provide cars for people in our target market such as Jaguar, BMW, Mercedes-Benz, Lexus, and others.

 

  1. List three concerns of financing the production of an automobile.

 

Ø      What it will cost to develop the product

Ø      What it will cost to produce the product

Ø      Whether the product can be sold at a reasonable profit

 

  1. What are Recurring Costs?  Give some examples as related to cars production.

 

Recurring costs are the expenses that recur every time you produce and sell the product.  Labor and material costs to make the product as well as the expenses to move the product to the customer, are included in the recurring costs.

 

  1. What are Non-Recurring Costs?  Give some examples as related to cars production.

 

Non-recurring costs are the development costs associated with a product.  They are the expenses that occur once and do not recur no matter how many times the company reproduces the product.  Engineering, research and development expenses, and equipping the manufacturing facilities to produce the product are expenses included in non-recurring costs.

 

  1. What is overhead?

 

Overhead is the calculated indirect costs that are turned into a percentage and added to the direct costs to produce the product.

 

  1. Complete Activity 9.  List results.

  Profit 10%=$0.22

Overhead 15%=$0.33

Delivery Costs 3%=$0.07

Packaging 12%=$0.27

Manufacturing Costs and Assembly (Labor) 15%=$0.33

Procurement (Materials) 45% =$1 

To break even we would have to sell 227273 pens ($50,000/$0.22 profit).

  1. Complete Activity 10 List results.

Basic pen

$0.25

Washable ink

$0.25

Ball point

$0.10

Metal Clip

$0.25

Recyclable Plastic

$0.50

Total

$1.35

 

 

 

 

Procurement

$1.35

Manufacturing costs

$0.45

Packaging

$0.36

Delivery costs

$0.09

Indirect costs

$0.45

Profit

$0.30