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Weekly Log # 2

  Name: Paul Su    Date: 11/22/02   Team Name : Engineering Inc.                       

What was the focus of this weeks problem solving?

This week we focused on finances and the results of our surveys.

 

What did you accomplish?  What Materials were used?

We graphed our survey results. Wrote out our future plans and worked on activity 9.

What are your next plans for the project?

We plan to survey more people in the new age group 18-24 (new car buyers).

Are you satisfied with the groups progress?  What would you change?

Yes.

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.)

            The income level of my target population is middle class.

            From our survey we found that our target audience is willing to pay any where from $10,000-$30,000 and over.

            The competition that provides similar products in our market are other companies such as Ford.

 

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

 

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

        Recurring costs are expenses that recur every time you produce and sell the product. Some examples of recurring costs are the workers salary and the electricity needed to run the factories.

 

  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 one and do not recur no matter how many times the company reproduce the product. An example of non-recurring costs would be the money spent on development and research and the cost of creating the production line needed to build the cars.

  1. What is overhead?

        Overhead is the calculated indirect costs that are turned into a percentage and added to the direct costs to get the total 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