Engineering Technology & Management 320: Engr Cost Analysis

12-Nov-12

DeAndria L Hardy

Item Units Values Sunk costs

OutofPocket $ 15,550 Total $ 212,800

MarketStudy1Cost $ 100,000 OneTime

MarketStudy2Cost $ 85,000 Capital $ 300,000

MarketPotential ea 100,000

License fee $/yr 150,000 Fixed Costs

License Fee $/yr 150,000

Docs-Lab $ 975

Docs-Services $ 125 Prototype (Total to Eaches)

30Units-Material $ 1,200 Material $/ea 40.00

DemoUnits-Labor $ 9,500 Labor $/ea 316.67

DemoUnits-Services $ 450 Services $/ea 15.00

HE-Consulting Time hr 2 Total $/ea 371.67

Variable (Production from Prototype)

Labor Cost %ofProto 95% Material $/ea 4.00

Material Cost %ofProto 90% Labor $/ea 15.83

Fixtures $ 75,000 Total $/ea 19.83

Test Equipment $ 225,000

Variable Other

DistributorMark-up % 33% Distribution $/ea 6.55

Retail Mark-up % 22% Retail $/ea 5.80

Price-Low $/ea 83.55 Marketing $/ea 2

Price-High $/ea 106.55 Total $/ea 14.35

YearOneSales ea/yr 30,000 Total Variable $/ea 34

Sales Growth % 100%

Marketing Cost $ 60,000

**The following is a work sample based of an academic assignment. The deliverables were analyze the economic impact of a given product.

This document is the accompanying data for a written report.***

Inputs

Assignment LA02: Raster Blaster

Objective: Calculate Annual Worth of Raster Blaster

Outputs- Interim Calculations

Year Sales/Prod ProdCosts OtherCosts FixedCosts

ea/yr $/yr $/yr $/yr

0 0 $0.00 $0.00 $150,000.00

1 30,000 $595,000.00 $430,447.00 $150,000.00

2 60,000 $1,190,000.00 $860,894.00 $150,000.00

3 90,000 $1,785,000.00 $1,291,341.00 $150,000.00

4 120,000 $2,380,000.00 $1,721,788.00 $150,000.00

5 150,000 $2,975,000.00 $2,152,235.00 $150,000.00

Year 1 Year 2 Year 3 Year 4

Annual Production $149,021.59 $298,043.18 $447,064.77 $596,086.36

Annual Other $107,808.23 $215,616.46 $323,424.69 $431,232.92

Annual Total $294,398.29 $551,228.11 $808,057.93 $1,064,887.75

Annual RevenueLow $627,769.10 $1,255,538.21 $1,883,307.31 $2,511,076.41

Annual RevenueHigh $800,584.06 $1,601,168.11 $2,401,752.17 $3,202,336.23

Annual ProfitHigh $506,185.77 $1,049,940.01 $1,593,694.24 $2,137,448.48

Annual ProfitLow $333,370.82 $704,310.10 $1,075,249.38 $1,446,188.67

*Calculated Using Present to Annual Formula i 8%

n 5

P[i(1+i)n/(1+i)

n-1]

F[i/(1+i)n-1]

**The following is a work sample based of an academic assignment. The deliverables were analyze the economic impact of a given product.

Outputs - Annual Worth Analysis

Present→ Annual

Future →Annual

Equations

Outputs- 5yr Production Cost Analysis

Total Costs RevenueLow RevenueHigh ProfitLow ProfitHI

$/yr $/yr $/yr $/yr $/yr

$150,000.00 $0.00 $0.00 -$150,000.00 -$150,000.00

$1,175,447.00 $2,506,500.00 $3,196,500.00 $1,331,053.00 $2,021,053.00

$2,200,894.00 $5,013,000.00 $6,393,000.00 $2,812,106.00 $4,192,106.00

$3,226,341.00 $7,519,500.00 $9,589,500.00 $4,293,159.00 $6,363,159.00

$4,251,788.00 $10,026,000.00 $12,786,000.00 $5,774,212.00 $8,534,212.00

$5,277,235.00 $12,532,500.00 $15,982,500.00 $7,255,265.00 $10,705,265.00

Year 5 Year 1 Year 2 Year 3

$745,107.95 Annual Production $107,680.00 $215,360.01 $323,040.01

$539,041.15 Annual Other $77,900.06 $155,800.12 $233,700.18

$1,321,717.57 Annual Total $212,726.28 $398,306.35 $583,886.41

$3,138,845.52 Annual RevenueLow $453,613.33 $907,226.66 $1,360,839.99

$4,002,920.29 Annual RevenueHigh $578,485.94 $1,156,971.88 $1,735,457.83

$2,681,202.72 Annual ProfitHigh $365,759.66 $758,665.54 $1,151,571.42

$1,817,127.95 Annual ProfitLow $240,887.05 $508,920.32 $776,953.58

*Calculated Using Future to Annual Formula i

n

Outputs - Annual Worth Analysis Outputs- Annual Worth Analysis

Outputs- 5yr Production Cost Analysis

Year 4 Year 5

$430,720.02 $538,400.02

$311,600.24 $389,500.29

$769,466.47 $955,046.54

$1,814,453.33 $2,268,066.66

$2,313,943.77 $2,313,943.77

$1,544,477.29 $1,544,477.29

$1,044,986.85 $1,044,986.85

5%

5

Outputs- Annual Worth Analysis