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Example Report: Optic Distortion, Inc. (A) To get the three types of poultry farms, the appealing and unappealing characteristics of employing ODI contact lens are provided as beneath. When it comes to attractive characteristics, three types of chicken facilities are the same: much less cannibalism, fewer feed price, and less the temporary weight-loss and the reifungsverzögerung of egg production.

In the perspective of cannibalism, which is originally 25% showed in experience, go mortality is reduced to a average of 4. five per cent when ODI lens are being used.

On the contrary, the debeaking makes the mortality intended for cannibalism from 25% to only 9%, which is higher than contact lenses used. In other words, farmers can save more 5. 5% (9% minus 4. 5%) birds in their farmville farm. On the other phrases, farmers can save $2. 40(price of per hen)*4. 5%*the number of hens in the farm. From the perspective of much less feed expense, the debeaking chicken simply can consume the feed in the trough at least 3/8 deep, while the ODI lens used chicken simply can consume the feed in the trough below 3/8deep.

At $158 per lot for poultry feed, this may represent substantial annual personal savings, especially for huge farms. From the perspective of less the temporary weight loss and the reifungsverzögerung of egg production, because the fewer cannibalism and the trauma resulting, farmer can get more eggs. When it comes to unappealing characteristics, the details will be as beneath. Farm Types| Unappealing Characteristics|

Small Farms| Labor cost| Lens cost| The number of chickens are too small to use the new technology| Channel Farms| Annually cash flow is only $375, 000| The burning point from the hydrophilic plastic is very nearby the sterilization temperature| Not reused and the contact lens cost| Large Farms| Not reused| Contact lens cost| The melting point of the hydrophilic polymer is incredibly close to the sanitation temperature| As regards geographic areas, ODI ought to focus their efforts in California. Presented the thickness of large farms n Cal (flock scale 50, 1000 or greater), it seems sensible not only to perform the initial merchandise introduction generally there but to target the entire initial year of business in this single Western Coast state. The first year’s designed production amount is approximately 20 million, basically the same as California’s chicken inhabitants. Success in this area could after force farms in other declares to apply the zoom lens simply as a way of staying competitive. As regards focus on segment, it appears that the emphasis should be in the beginning on farms with a group size of 60, 000 and over, which means the top farms.

Due to the fact that this would limit the cost to do business (fixed costs) needed to assistance these accounts (fewer sales and technical experts required). Also, simply by focusing on significant farms, the sales team can interface together with the farms directly, and there is no need for a “middle man to be involved with product distribution. Avoiding this intermediary will help keep costs down. Intended for ODI, prices considerations for any pair of contacts are since below. Item| Fixed Cost| Advertising in Trade Publications| $100, 000| Headquarters Expenses| $184, 000(for volume of twenty million pair)| Regional Workplace and Warehouse| $196, 000|

Costs of Molds| $12, 000 x 3 sama dengan $36, 1000 (3 conforms are had to produce 21 years old, 600, 000 pair annually)| Licensing Arrangement with ” new world ” Plastics| $25, 000 (per year, must be paid for initially and second year of production)| Item| Variable Cost| per set of lenses| $0. 032| ODI Cost(per year): TC=FC+MC TOTAL COST=[($100, 000 & $184, 500 + $196, 000 & $36, 1000 + $25, 000)/(50% of 475600000)]+0. 032=$0. 055 (5. your five cent) per pair Farmers Saving when you use ODI lens(per year): Item| Saving| Fewer Mortality| $2. 40*(9%-4. 5%)=0. 108| Much less retardation of egg production| 0. 3/12=0. 044| Fewer feed cost| (0. 2446-0. 2368)*3/8*($158/2000)*365=0. 084| TOTAL SAVING=$0. 108+$0. 044+$0. 084=$0. 236(23. 6cent) The minimum cost that ODI considered is 8 penny per match, so the price stage can be from almost eight cent to 23. 6 cent, as well as the ODI will need to adopt the purchase price policy on entry which can be set the purchase price near 3. 6 nickle per set. For the realistic target for ODI by 1978 is the fifty percent penetration of such farms, when means ODI wants to reach the 50 percent of 470. 8 million pairs, that is, 235. 4 million pairs of lens be sold and used in the farms.

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