Development
Prototyping
Hinges
Unit Price $0.69/package of two
Number of Units 2x packages of two
Subtotal $1.38
GST* 7% $0.10
PST 8% $0.11
Total Cost $1.59
GST #869577924
Velcro
Unit Price $0.04
Number of Units 42 inches
Subtotal $1.68
GST 7% $0.12
PST 8% $0.13
Total Cost $1.93
Thin Wood
donated generously by the Gingerbread Worshop
Aluminum Tracking
Unit Price donated generously by the UW Student Shop
Steel Tracking
Unit Price donated generously by the UW Student Shop
Cardboard
Unit Price donated generously by the Conrad Grebel Kitchen Staff
Hook & Latch
Unit Price donated by Shad Valley Waterloo
This product was developed from the heart and soul of the eight brilliant Shads of Team Yellow. No
amount of money can compensate for the hard and persistent work we have put into this design process
and each other for the past two-and-a-half weeks. For that very reason, we decided that it was
absolutely necessary to ensure our intellectual property rights.
Intellectual Property Rights
U.S. Patent Office Fee $500 (based on 1 USD = 1.4 CDN)
Canadian Patent Office Fee $400
European Patent Office Fee $500 (based on 1 U.S. Dollar = 1 Euro)
Patent Lawyer Fee $3600
Total Cost for a patent $5000
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1/4'' Plexiglas®
Unit Price $3.50 per sq.ft
Number of Units 5 sq ft.
Total Cost $17.50
Hinges
Unit Price $1.50
Number of Units 1
Total Cost $1.50
Velcro
Unit Price $0.04
Number of Units 42 inches
Total Cost $1.68
Labour
Wage* $6.85
Time 0.075 hours/employee/
# of employees 3
Total Cost $1.54
Custom Sizing Plexiglas(r)
Unit Price $0.30
Number of Units 3 boards
Total Cost $0.90
Glue
$0.55
Hydro Energy
none/negligible
Lease
none-
operation in Shiuli's basement
TOTAL MANUFACTURING COST (PER PRODUCT) : $23.67
**Wage based upon the current minium wage in Ontario
*There is GST or PST on raw materials used in manufacturing.
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Packaging cost (averaged) for one product
Cardboard Box $0.45
Pastic Wrap $0.15
Sealing Tape $0.05
Total Cost $0.65
We decided to market our products through Canada's department superstore:
Wal-Mart (r) where there is already an established section of products dealing
with children's safety. If our intial sales are favourable, we will look into
expanding our distribution into other such retailers including Zellers
and Canadian Tire. We will be using a freight company such as UPS(r) and
CanPar(r) to distribute our product.
Freight
Maximum Possible Cost $10.00
Miniumum Possible Cost $4.00
Estimated Mean Cost $6.75
TOTAL PACKAGING (PER PRODUCT) : $7.40
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Based on the financial data we put together, we found out that our costs and
therefore our price must be higher than predicted. However, we still decided
that based on our market research that the product will still sell well at a
higher-than-expected price. We set the price of our product at $34.99 before
taxes. We set a target of manufacturing 10 of our products for the start of
our operation before expecting any revenue. The cost of manufacturing 10 such
products will be approximately $240. With that figure, we decided that each
of the eight members of the Yellow team will contribute $30 towards the startup
costs.
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Annual Predictions:
Sales 3000 units of stove-top wonder
Revenue $104970
Expenditures $84000
Profit $20970
Projected Growth 3.5% for the first 5 years, then level off
