XYZ enterprises wishes to launch a new and innovative product made with the injection molding process. Mr. O is in charge of the product development team, Mr. CASIO is in charge of the Tooling fabrication team and Mr. NICASIO is in charge of the production floor. Marketing is requesting a 900,000 pcs/year volume and the life expectancy for this part is 5 years. Estimated part weight is 0.550 kg. a) What will be the weekly required production rate to meet the yearly volume?

b) How many cavities are recommended for the production yearly volume required.

Based on your previous answer, how many normal hours and overtime hours will be required to meet the weekly production schedule.

Determine the piece price the first year considering the initial investment amortized on the first year of production and a 25 % gross profit

Determine the piece price the second year considering the initial investment amortized on the first year of production and a 25 % gross profit.

Useful data: Mr. O reported $200,000 USD development cost. Mr. CASIO reported: MOLD $350,000 USD for 1 Cav. & $550,000 for 2 cav. mold Checking fixture $60,000 USD Secondary Equipment $25,000 USD Mr. NICASIO reported: Cycle time 70 seconds Machine utilization cost 40 USD/hour Material Cost $4.50 USD/LB. Labor Cost Normal time 20 USD/hour Labor Cost overtime 40 USD/hour SG&A cost 20 USD/hour WORK HOURS NORMAL TIME3 SHIFTS OF 8 HOURS WEEKENDS ARE OVERTIME 52 WEEKS PER YEAR.