Bill Pope Has Developed a New Device That Is So

question 90

Essay

Bill Pope has developed a new device that is so exciting he is considering quitting his job in order to produce and market it on a large-scale basis.Bill will rent a garage for $300 per month for production purposes.Utilities will cost $40 per month.Bill has already taken an industrial design course at the local community college to help prepare for this venture.The course cost $300.Bill will rent production equipment at a monthly cost of $800.He estimates the material cost will be $5 per unit,and the labour cost will be $3 per unit.He will hire workers and spend his time promoting the product.To do this,he will quit his job,which pays $3,000 per month.Advertising and promotion will cost $900 per month.
Required:
Complete the chart below by placing an "X" under each heading that helps to identify the cost involved.You can place an "X" under more than one heading for a single cost: for example,a cost may be a sunk cost,an overhead cost,and a product cost; you would place an "X" under each of these headings opposite the cost.
* Between the alternatives of going into business to make the device or not going into business to make the device.See columnheading "Differential Cost".
$\begin{array}{|l|l|l|l|l|l|l|l|l|}\hline& \begin{array}{l}\text { Opportunity }\\\text { Cost }\end{array} & \begin{array}{l}\text { Sunk } \\\text { Cost }\end{array} & \begin{array}{l}\text { Variable } \\\text { Cost }\end{array} & \begin{array}{l}\text { Fixed } \\\text { Cost }\end{array} & \begin{array}{l}\text { Mfg. } \\\text { Overhead }\end{array} & \begin{array}{l}\text { Product } \\\text { Cost }\end{array} & \begin{array}{l}\text { Selling } \\\text { Cost }\end{array} & \begin{array}{l}\text { Differential } \\\text { Cost }\end{array} \\\hline \text { Garage rent } \\\hline \text { Utilities } \\\hline \text { Cost of the }\\\text { industrial }\\\text { design course }\\\hline\text { Equipment }\\\text { rented }\\\hline \text { Material cost } \\\hline \text { Labour cost } \\\hline \text { Present salary } \\\hline \text { Advertising } \\\hline\end{array}$

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Definitions:

Emotional

Pertaining to feelings or psychological states, often influencing behavior and perception.

Job Crafting Behaviours

The actions taken by employees to personally modify their job tasks, relationships, and perceptions to improve their job satisfaction and performance.

Structural Job Resources

Aspects of a job environment that facilitate the achievement of work goals, reduce job demands, and stimulate personal growth, learning, and development.

Feedback

The information provided as a response to an action or process, aimed at improving or adjusting future performance.