Bill Pope Has Developed a New Device That Is So

question 54

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 per unit will be $5, and the labor cost will be $3. 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. There can be "Xs" placed under more than one heading for a single cost, e.g., a cost might be a sunk cost, an overhead cost and a product cost; there would be an "X" placed 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.

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Definitions:

Interview Research

A qualitative research method involving direct, structured or semi-structured conversations to gather insights or data.

Social Status

An individual's position or rank within the social hierarchy, determined by wealth, occupation, education, and other factors.

Health Services

A broad range of medical or health-related services aimed at maintaining, enhancing, or managing the health of individuals.

Social Support

The assistance and comfort received from friends, family, and others, which can significantly impact an individual's mental and physical health.