business senarios advanced

Scenario 3          15/10/15    Product and Price

Following your conversation with Bill you have realised that you need to think seriously about your product. You have had some advice from an experienced engineering manager who told you.

 

“In designing an engineering product the project engineer must also be able to cost it. He/she must ensure that when it is manufactured there will be sufficient margin above the direct costs of assembly, labour and bought in materials to pay for the indirect employees and overheads of the company as well as generate a profit. The project engineer should be able to calculate a minimum selling price for the new product that will meet these criteria………… Remember that in the real world, selling price bears no relation to production cost, it is the market that ultimately sets the price it is prepared to pay for a product.”                                                                                    (A Lamming)

 

So how much will your product cost to produce?

How can you minimise production costs?

 

Learning Outcomes

Following this PBL cycle you should be able to:

 

  • Explain what is meant by the terms
    • minimum selling price
    • margin
    • overheads
    • indirect labour
  • Calculate the costs associated with materials and assembly of your product.
  • Discuss the contribution of ‘overheads’ to product cost.
  • Discuss methods for assessing the cost of overheads for your product.
  • Explain the contribution of fixed costs and variable costs and their relationship with production volume and unit production cost.

 

Resources

Library Catalogue

Engineering Management (Mazda, Addison Wesley) or similar

 

Internet

http://www.is4profit.com/

www.startinbusiness.co.uk

www.bbc.co.uk/learning/subjects/business_studies.shtml

http://news.bbc.co.uk/1/hi/business/

www.businesslink.gov.uk/bdotg/action/home?&domain=www.businesslink.gov.uk

www.smallbusiness.co.uk

www.startups.co.uk

p(12)

Place your order now to enjoy great discounts on this or a similar topic.

People choose us because we provide:

Essays written from scratch, 100% original,

Delivery within deadlines,

Competitive prices and excellent quality,

24/7 customer support,

Priority on their privacy,

Unlimited free revisions upon request, and

Plagiarism free work,

 

Unlike most other websites we deliver what we promise;

  • Our Support Staff are online 24/7
  • Our Writers are available 24/7
  • Most Urgent order is delivered with 6 Hrs
  • 100% Original Assignment Plagiarism report can be sent to you upon request.

GET 15 % DISCOUNT TODAY use the discount code PAPER15 at the order form.

Type of paper Academic level Subject area
Number of pages Paper urgency Cost per page:
 Total: