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Question 7 Based on textbook Exhibit 1-3 (reproduced here) which product had the lowest production investment per production unit? Stanley Tools Jobmaster Screwdriver 100,000 units/year

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Question 7 Based on textbook Exhibit 1-3 (reproduced here) which product had the lowest production investment per production unit? Stanley Tools Jobmaster Screwdriver 100,000 units/year Rollerblade In-Line Skate 100,000 units/year Hewlett-Packard DeskJet Printer Volkswagen New Beetle Automobile 100,000 units/year Boeing 777 Airplane 50 units/year 4 million units/year 40 years 2 years Annual production volume Sales lifetime Sales price Number of unique parts (part numbers) 3 years $200 $130 200 parts 6 years $20,000 10,000 parts 30 years $200 million 130,000 parts 3 parts 35 parts 1 year 2 years 1.5 years 3.5 years 4.5 years 3 people 5 people 100 people 800 people 6,800 people Development time Internal development team (peak size) External development team (peak size) Development cost Production investment 3 people 10 people 75 people 800 people 10,000 people $150,000 $750,000 $50 million $400 million $3 billion $150,000 $1 million $25 million $500 million $3 billion EXHIBIT 1-3 Attributes of five products and their associated development efforts. All figures are approximate, based on publicly available information and company sources. 1. The screwdriver 2. The airplane 3. The rollerblades 4. The printer 5. The automobile >> A Moving to another question will save this response. Question 7 Based on textbook Exhibit 1-3 (reproduced here) which product had the lowest production investment per production unit? Stanley Tools Jobmaster Screwdriver 100,000 units/year Rollerblade In-Line Skate 100,000 units/year Hewlett-Packard DeskJet Printer Volkswagen New Beetle Automobile 100,000 units/year Boeing 777 Airplane 50 units/year 4 million units/year 40 years 2 years Annual production volume Sales lifetime Sales price Number of unique parts (part numbers) 3 years $200 $130 200 parts 6 years $20,000 10,000 parts 30 years $200 million 130,000 parts 3 parts 35 parts 1 year 2 years 1.5 years 3.5 years 4.5 years 3 people 5 people 100 people 800 people 6,800 people Development time Internal development team (peak size) External development team (peak size) Development cost Production investment 3 people 10 people 75 people 800 people 10,000 people $150,000 $750,000 $50 million $400 million $3 billion $150,000 $1 million $25 million $500 million $3 billion EXHIBIT 1-3 Attributes of five products and their associated development efforts. All figures are approximate, based on publicly available information and company sources. 1. The screwdriver 2. The airplane 3. The rollerblades 4. The printer 5. The automobile >> A Moving to another question will save this response

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