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Transcript of Windrusher Drop Dead Design Review Today only, free admission to the presentation. You’re given...
WindrusherDrop Dead
Design Review
Today only, free admission to the presentation. You’re given the entire seat, but you’ll only
need the edge of it.
The Team Key Re-signings
– Larry Kreger– Josh Matz– Lance Hagerman
Lost to Retirement– Todd Andreoni– Brian Bacher
Acquired Via Free Agency– JD Miknis– Nicole Szekeres
Developmental Squad (Business Affiliates)– Jennifer Zechman– Jared Cohen– Gene Walsh
Agenda Final Product Design Costing Process Plans Target Production Numbers Business/Marketing Issues Town Meeting
Final Product Design Materials:
– One ¼ inch dow rod for post– One post connector– One 6 inch piece of copper tubing– Two plastic spools– Two end caps– One plastic body– 4 “Foamies” legs– Two body stickers– Possible spacers/other hardware– Packaging
Costing Materials:
– One ¼ inch dowel rod for post:---------$0.25– One post connector:--------------------$0.90– *One 6 inch piece of copper tubing:----$0.29– Two plastic spools:--------------------$0.40– Two end caps:--------------------------$0.83– *One plastic body:---------------------$0.97– *4 Foamies legs with screen printing:--$0.19– *Two body stickers:--------------------$1.30– Possible spacers/other hardware:-------$0.50– *Packaging-----------------------------$0.30 – *Manufacturing/Labor-------------------$0.44
$6.37
Costing for Tubing 10 ft for $6.99 6 inches needed per unit $0.29 per Windrusher From Ace Hardware in Millheim
Costing for Plastic Body 48x96x1/8 Polypropylene Sheet
– $46.59– Norcen Industries
48 Bodies per Sheet $0.97 per Body
PAMPSet-up - $15 per color- $0.15 per Wind
RusherPrinting cost - $1 per sheet - $0.25 per Wind
Rusher Total cost- $0.35
2 in 0.875 in
5 in
Costing for Leg Screen Printing
Costing for Body StickersMaterial
- $0.45 Per. sheet
- $0.90 Per. Wind Rusher
Printing Cost
- $0.20 Per sticker- $0.40 Per Wind Rusher
Total cost- $1.30
Costing for Packaging 500 bags for $57.75 $0.11 per bag Size: 10x8x24 (WxDxL) www.tigerpak.com
Costing for Manufacturing
Labor paid $6.30 per hour– Cut copper @ 30 seconds per cut– Slit spools @ 5 seconds per slit– Cut legs @ 15 seconds per Windrusher– Spool and leg assembly @ 30 seconds per
Windrusher– Cut body @ 12 seconds per unit– Package @ 10 seconds per unit
Estimated around $0.44 per unit
Variable CostsMaterial 1 100 200 500 1000 2000 5000Foamies w/ Printing $0.19 $19.00 $38.00 $95.00 $190.00 $380.00 $950.00Copper Tubing $0.29 $29.00 $58.00 $145.00 $290.00 $580.00 $1,450.00Dowel Rod $0.25 $25.00 $50.00 $125.00 $250.00 $500.00 $1,250.00Post Fastener $0.90 $90.00 $180.00 $450.00 $900.00 $1,800.00 $4,500.00Caps $0.83 $83.00 $166.00 $415.00 $830.00 $1,660.00 $4,150.00Spools $0.40 $40.00 $80.00 $200.00 $400.00 $800.00 $2,000.00Body $0.97 $97.00 $194.00 $485.00 $970.00 $1,940.00 $4,850.00Stickers $3.60 $360.00 $720.00 $1,800.00 $3,600.00 $7,200.00 $18,000.00Possible Spacers/Other Hardware $0.50 $50.00 $100.00 $250.00 $500.00 $1,000.00 $2,500.00Packaging $0.30 $30.00 $60.00 $150.00 $300.00 $600.00 $1,500.00Labor and Machine Time $0.44 $33.28 $66.52 $165.09 $328.96 $657.90 $1,608.52
Total Material Cost $8.67 $856.28 $1,712.52 $4,280.09 $8,558.96 $17,117.90 $42,758.52Unit Material Cost $8.67 $8.56 $8.56 $8.56 $8.56 $8.56 $8.55
Total Royalties Cost $2.40 $240.00 $480.00 $1,200.00 $2,400.00 $4,800.00 $12,000.00Unit Royalties Cost $2.40 $2.40 $2.40 $2.40 $2.40 $2.40 $2.40
Total Variable Cost $11.07 $1,096.28 $2,192.52 $5,480.09 $10,958.96 $21,917.90 $54,758.52Unit Variable Cost $11.07 $10.96 $10.96 $10.96 $10.96 $10.96 $10.95
Fixed CostsLicensing fee $100First-year licensing fee $100Application fee $50Total Fixed Costs $250
Total Costs $261.07 $1,346.28 $2,442.52 $5,730.09 $11,208.96 $22,167.90 $55,008.52Total Unit Costs $261.07 $13.46 $12.21 $11.46 $11.21 $11.08 $11.00
Cost Analysis
Process Plans Cut copper rod with rotary tool or pipe
cutter Slit spool with soldering iron or rotary
tool with an aluminum sleeve template Cut legs with a razor and template Hand assembly of legs into spools Body will be CNC machined
Target Production Numbers:Best-Worst Case Scenario
Analysis Base Case Worst Case Best Case
Unit sales 200 20 500Price per unit $30 $20 $50Variable costs per unit(after royalties paid) $8.66 $9.86 $8.26Fixed costs per year $250 $250 $250
Scenario Net Income Cash Flow Net Present ValueBase Case $3,198 $3,198 $4,018Worst Case ($45) ($45) ($47)Best Case $16,508 $16,508 $20,620
Units Produced & Sold 100 200 500 1000 2000 5000
INCOMEGross Sales $3,000 $6,000 $15,000 $30,000 $60,000 $150,000 Less returns and allowances $60 $120 $300 $600 $1,200 $3,000 Net Sales $2,940 $5,880 $14,700 $29,400 $58,800 $147,000 Cost of Goods Sold $626 $1,253 $3,130 $6,259 $12,518 $31,259 Gross Profit $2,314 $4,627 $11,570 $23,141 $46,282 $115,741
OPERATING EXPENSESGeneral & Administrative Expenses Licensing / Application Fees $250 $250 $250 $250 $250 $250
Royalties Royalties - 8% of sales $240 $480 $1,200 $2,400 $4,800 $12,000
TOTAL OPERATING EXPENSES $490 $730 $1,450 $2,650 $5,050 $12,250
Net Income Before Interest & Taxes $1,824 $3,897 $10,120 $20,491 $41,232 $103,491 Income Taxes $327 $700 $1,817 $3,678 $7,401 $23,926
NET INCOME AFTER TAXES $1,496 $3,198 $8,303 $16,813 $33,831 $79,566
Selling Price $30Income Taxes
Federal 15% $0-$50,00025% $50,000-$75,000
State 2.80%Local 0.15%
Income StatementWindrusher