Windrusher Drop Dead Design Review

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 More like Benchmark:

$32.95

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

5 in

2 in 0.875 in

Costing for Windrusher’s Legs

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

Process Plans Body fits into 8x11 Rectangle

Process Plans Mastercam Verification

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

Business/Marketing Issues

Change the coloring Add Penn State Logo Add a number on the body

Town Meeting Questions Comments Likes Dislikes Feasible Suggestions