COB 300 Presentation
How much money are we seeking and why? - correct answer ✔✔we are seeking 1,100,000 dollars-
500,000 bank loan which will be paid off in year 3 and 100,000 from each of us to get materials to start
our business
How much are we willing to sell and how many times a year will product be bought - correct answer
✔✔6,757 cushion and fabric slips and 20,477 cloth covers - found these numbers by multiplying our
total market potential by the market share
-once a year for fabric slips, and 1 every 3 years for cushion
Why are the 2 sizes the same price? - correct answer ✔✔because it isn't costing us an extreme amount
extra so for our customer's benefit, we kept the prices the same
What are the target markets and why did you choose them - correct answer ✔✔disabled active
outdoorsy - because they will be in their chair more and like to be outside
comfy lifestyles- they are health conscious and want to live a comfortable life
Veterans- they have done so much for us so it's a way to give back to them and they are a great media
outlet
Location, why we chose it and why leasing - correct answer ✔✔Waco, Texas- cheap land and labor cost -
lease because it is expensive to buy a warehouse, so we are going to start off by leasing. We also may
choose to move closer to certain markets along the road, so leasing gives us the flexibility to move if we
need to.
Outsourced Functions why we chose them - correct answer ✔✔Fabric in bulk from Oumei Textile (China)
- we chose the fabrics from the places because we were able to custom cut and got a great deal!
, Velcro from Levitt Co.- we compared Levitt to other places and levitt had the best price and had more
length
Cushions from Foam Factory- they could cut to our dimensions and have free shipping
Sewing String from Thread Art- bulk
Outsourcing allows us to use a smaller warehouse and save money on cutting machinery, which would
cost $1,200.
8 employees - correct answer ✔✔CEO, 2 Customer service staff, 4 op staff, 2 marketing staff
Why do you add a 4th operations staff in year 3 - correct answer ✔✔because of increased demand, we
need a higher capacity, and adding another person and a machine makes that increase possible
Where did we get actual compensation for employee cost? - correct answer ✔✔you take the amount
they get paid and multiply it by number of workers
how did you get operation staff price? - correct answer ✔✔you take the hourly pay of 9.50 and times by
8 hours by 250 days which gives you 19,000 dollars and times by number of employees
Why don't we have health insurance for operations staff? - correct answer ✔✔because they get paid
hourly
How did we get cost of health insurance? - correct answer ✔✔Took the hourly cost of health insurance
from the table and calculated yearly cost based on total hours worked for the year
FICA, FUTA, SUTA - correct answer ✔✔FICA- 7.65%
FUTA- 6% on first $7,000
SUTA- 2.7% on first $9,000
How much money are we seeking and why? - correct answer ✔✔we are seeking 1,100,000 dollars-
500,000 bank loan which will be paid off in year 3 and 100,000 from each of us to get materials to start
our business
How much are we willing to sell and how many times a year will product be bought - correct answer
✔✔6,757 cushion and fabric slips and 20,477 cloth covers - found these numbers by multiplying our
total market potential by the market share
-once a year for fabric slips, and 1 every 3 years for cushion
Why are the 2 sizes the same price? - correct answer ✔✔because it isn't costing us an extreme amount
extra so for our customer's benefit, we kept the prices the same
What are the target markets and why did you choose them - correct answer ✔✔disabled active
outdoorsy - because they will be in their chair more and like to be outside
comfy lifestyles- they are health conscious and want to live a comfortable life
Veterans- they have done so much for us so it's a way to give back to them and they are a great media
outlet
Location, why we chose it and why leasing - correct answer ✔✔Waco, Texas- cheap land and labor cost -
lease because it is expensive to buy a warehouse, so we are going to start off by leasing. We also may
choose to move closer to certain markets along the road, so leasing gives us the flexibility to move if we
need to.
Outsourced Functions why we chose them - correct answer ✔✔Fabric in bulk from Oumei Textile (China)
- we chose the fabrics from the places because we were able to custom cut and got a great deal!
, Velcro from Levitt Co.- we compared Levitt to other places and levitt had the best price and had more
length
Cushions from Foam Factory- they could cut to our dimensions and have free shipping
Sewing String from Thread Art- bulk
Outsourcing allows us to use a smaller warehouse and save money on cutting machinery, which would
cost $1,200.
8 employees - correct answer ✔✔CEO, 2 Customer service staff, 4 op staff, 2 marketing staff
Why do you add a 4th operations staff in year 3 - correct answer ✔✔because of increased demand, we
need a higher capacity, and adding another person and a machine makes that increase possible
Where did we get actual compensation for employee cost? - correct answer ✔✔you take the amount
they get paid and multiply it by number of workers
how did you get operation staff price? - correct answer ✔✔you take the hourly pay of 9.50 and times by
8 hours by 250 days which gives you 19,000 dollars and times by number of employees
Why don't we have health insurance for operations staff? - correct answer ✔✔because they get paid
hourly
How did we get cost of health insurance? - correct answer ✔✔Took the hourly cost of health insurance
from the table and calculated yearly cost based on total hours worked for the year
FICA, FUTA, SUTA - correct answer ✔✔FICA- 7.65%
FUTA- 6% on first $7,000
SUTA- 2.7% on first $9,000
