Design your product and provide it a name and a description and visual/picture of it (this can be your own drawing or an image from the intemet with your brand/logo assigned to the image). Justify your choice by explaining in details the reasons why you selected your product (i.e. is there a demand for it? will it solve any social, environmental or financial issues? etc.). What is your vision for the selected product?
2. Estimate the product’s Research and Development (R&D) and Design costs (as you will be undertaking the R&D, building a prototype, testing the product. You should assign yourself an hourly wage rate based on market research and keep a record of the activities and how many hours it took you to design your product. This will determine your R&D and Design costs).
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Provide detailed explanations about your R&D processes/steps and how product is manufactured.
3. Conduct a market research (i.e. search the internet, field research) to identify, estimate and determine the costs of your product’s direct materials, direct labour and manufacturing overhead (fixed and variable). Clearly list and determine how much and types of materials, labour and other manufacturing resources will be required to produce one unit of your product and calculate your product’s cost per unit. Explain the approach used to calculate the overhead cost per unit and clearly differentiate/list fixed and variable manufacturing overheads.