Curled metal inc

Curled metal inc gy uickiamin no•R6pR 16, 2011 2 pagos Fourth, CMI needs to establish a network of influencers or increase publicrelations. To do so, CMI needs to established networks in a new industry to thecompany and key influencers to endorse its product. The result from ProfessorMcCormack Will be of high value to gain endorsement from consulting firm. Fifth, CMI needs to do market research, estimate the pnce elastlclty of the new pad and the demand function and then adapt the initial Price o the profit-maximized Price.

Conclusion CMI’s pads definitely Will be the market leader in the industry as it is innovative with high efficiency. Getting patent for this pad Will ensure the grawthprofitability of CMI. In this case, perceived value pricing is used as the pad hasmore to Offer than conventional asbestos. In line with this ricin strate marketing mix of to nex: page advertising, educatio success of this produ Figure 1 – Units Needed Month DifferentMarket s Figure 2 ora to View nut*ge ole in ensuringthe and at

Consewative Production Schedule for First Year 11 h’ InchDiameter Units Only) MedianUnitsNeededMinus 250 UnitsAvailable CapacityAdditional prod ProductionCost ($75,000/250 Units)Total UnitsProducedQ1 (25%Market )708. 33458. 33$1 50,000 750Q2 (25%Market 7SOQ3 (50%Market )1416. 66511 66. 565$300,OOO 1500Q4 (50%Market )1416. 66511 66. 665$300,OOO 1500 Totals 4249. 96 3249. 96 900000 4500 Figure 3 – Total Manufacturing Costs With and Without $50,000 Tooling Expense 1 h’ Inch Diameter Units Only Calculation Chart to Arrive at these Conclusions:

UnitsProducedTotalManufacturing CostTotalManufacturingCost (w/Equipment)AdditionalCapacityCostTotalCostTotal Cost (w/ permanentT001ing Expense)2503703017295-37030672955007406 75011109051885150,000261 ,090251 ,88510001481 2069180225,00 0373, 370300172950675, 0001 ,050 ,0001 09005188501 , 993,8501000014812006918001 ,2002, 541 ,800 Figure 4 – Total Cost per Unit (with and without Permanent ToolingExpense) 11 h» Inch Diameter Units Only Figure 5 – Contribution Margin by Price per Unit Calculations (done in Excel): Sales Variable Cost = Contribution Margin