As can be seen from the brief it is expected that a 70% profit is required in selling the Levi-Mate. After successful prototyping, 100 units will be produced to be sold at one store as a trial production. If these sales go well unit production will jump to 50 000 units which the following costing is based on:
 |
| Product Costing Sheet |
The above sheet (adapted from Tim Williams upload to DNB303 Manufacturing Technology: Unit Costing Sheet example) shows approximate costings for the Levi-Mate. It uses an overhead rate of $0.57. Note must be taken that a lot of these figures were guesses based off of the QUT unit DNB303 Manufacturing Technology, especially in terms of tooling costs etc. Assuming approximations are correct, the Levi-mate will cost $17.36/unit to manufacture.
Material costs were based on Stienwall Incorporated pricing for polymers (2006). This was more to get an accurate comparison between the material prices rather than prices that may be from different suppliers that have a competitive pricing scheme rather than an internal comparison scheme.
Based on the profit aims the product will then distribute to retail for approx $57.85/unit + GST. This in opinion is too much considering the target market. An aim to produce and distribute to retail at under $50 is an aim that may well be quite easily achievable considering some of the materials (Acrylic-Styrene-Acrylonitrile) costs being very high. If these costs were reduced the price of the Levi-Mate will reduce substantially as well.
No comments:
Post a Comment