Weekly Log # 2
Name: Paul Su Date: 11/22/02 Team Name : Engineering Inc.
|What was the focus of this weeks problem
This week we focused on finances and the results of our surveys.
|What did you accomplish? What Materials
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?
The income level of the target market or population.
The income level of my target population is middle class.
The price which the target market is willing to pay for a product.
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 to the
The competition that provides similar products in our market are other
companies such as Ford.
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.
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.
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.
Delivery Costs 3%=$0.07
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).