Bill Pope Has Developed a New Device That Is So

question 24

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 column heading "Differential Cost".

---

Definitions:

Neurons

Neurons are the primary cells of the nervous system, responsible for transmitting information through electrical and chemical signals.

Gyri

The ridges or convolutions that make up the surface of the brain, increasing its surface area and allowing for greater cognitive processing power.

Sulci

Grooves or furrows on the surface of the brain, which along with gyri (ridges), increase the surface area of the cerebral cortex.

Prenatal Development

The progression of maturation and advancement inside the uterus from the point of conception until delivery.