Essay About Conventional Pad And 480Total Project Cost

Curled Metal Inc. Operations Management
Assignment Curled Metal Inc.17PGP246Omprakash JhaBased on the analysis of the trail runs conducted by both Kendrick Foundation Company and Corey construction, we can arrive at the worth of the CMI product for the end user. Kendrick Foundation CompanyCost per conventional pad used = $150/24 = $6.25Number of conventional pads = 24*20 = 480Total project cost = 480*$6.25 = $3000Number of CMI pads used = 6Therefore, corresponding worth per CMI pad = $500Corey ConstructionCost per conventional pad used = $120/12 = $10Number of conventional pads = 12*50 = 600Total project cost = 600*$10 = $6000Number of CMI pads used = 5Therefore, corresponding worth per CMI pad = $1200Manufacturing CostsThe overall manufacturing costs including the sales margin Existing EquipmentPermanent ToolingMaterial cost $        46.92  $        46.92 Labor cost $        86.40  $        34.92 Factory overhead @ 360% $      311.04  $      125.71 Margin @ 50% $      222.18  $      103.78 Selling Price $      666.54  $      311.33 Based on the two conclusions, moving to a permanent tooling manufacturing process will help reduce manufacturing costs and thereby increase margins. Given its new product and consumers are not used to paying around $600 for a piece, they could initially be priced a bit more conservatively. Potential Market Size