Hello everyone,
I'm working on a project that requires me to find out the optimum price of making toys.
The toy is composed of 2 parts, and I've been given prices for these. The thing is that it actually requires 2 of each part to make 1 toy. Also, there is an initial tooling cost that needs to be factored in.
I'm required to find out the quantity that will ideally take advantage of the current pricing. They will accept any cost that's less than $20 per toy and up to 20000 in quantity.
Here we go...
Tooling = $10000
Part 1 = $0.50
Part 2 = $0.60
So if I were to make 100 toys, it becomes 10000+(0.50*2*100)+(0.60*2*100)=10220.
And I came up with an equation for the cost involved with making 1 toy as:
x=(10000+0.5y+0.6z)/(y/2); where x=cost, y=quantity of part 1, z=quantity of part 2.
Since the quantity of part 1 and 2 are the same (y=z), it's simplified to:
x=(10000+1.1y)/(y/2)
So the question is...
1. Can we formulate this as a line graph using the above equation (first of all, is that equation even correct...)?
2. What kind of graph or methods would you use to prove that your quantity is the most advantageous?
3. If anyone can guide me to a thread or workbook that I should dig in to find more about these pricing techniques... that would be seriously appreciated.
I know it's a lot but I'm very desperate to receive some help.
Please help and thank you very much in advance..!!
Jack
I'm working on a project that requires me to find out the optimum price of making toys.
The toy is composed of 2 parts, and I've been given prices for these. The thing is that it actually requires 2 of each part to make 1 toy. Also, there is an initial tooling cost that needs to be factored in.
I'm required to find out the quantity that will ideally take advantage of the current pricing. They will accept any cost that's less than $20 per toy and up to 20000 in quantity.
Here we go...
Tooling = $10000
Part 1 = $0.50
Part 2 = $0.60
So if I were to make 100 toys, it becomes 10000+(0.50*2*100)+(0.60*2*100)=10220.
And I came up with an equation for the cost involved with making 1 toy as:
x=(10000+0.5y+0.6z)/(y/2); where x=cost, y=quantity of part 1, z=quantity of part 2.
Since the quantity of part 1 and 2 are the same (y=z), it's simplified to:
x=(10000+1.1y)/(y/2)
So the question is...
1. Can we formulate this as a line graph using the above equation (first of all, is that equation even correct...)?
2. What kind of graph or methods would you use to prove that your quantity is the most advantageous?
3. If anyone can guide me to a thread or workbook that I should dig in to find more about these pricing techniques... that would be seriously appreciated.
I know it's a lot but I'm very desperate to receive some help.
Please help and thank you very much in advance..!!
Jack
