During the coming fiscal year, Floral Ink, a Junior Achievement Company will manufacture quality Flower Pot Pens.

 Flower Pot Pens require the following tools and materials for manufacturing.

             Tools:              1          Hot Glue Gun

                                    14        Paint Brushes

                                    4          Water Buckets

                        Materials:   8-inch ceramic flowerpots                            ($0.63 per unit)

                                    Tole paint of various different colors                     ($0.12 per unit)

                                    Water-based varnish                                            ($0.69 per unit)

                                    Green floral tape                                                  ($0.06 per unit)

                                    Red, blue and black pens with removable ends     ($0.10 per unit)

                                    Fake flowers                                                        ($0.17 per unit)

                                    Red kidney beans                                                ($0.80 per unit)

                                    Glue sticks for the glue gun                                  ($0.01 per unit)

 

Ready supplies of the above materials exist at various local retailers.  The company will utilize a computerized inventory system. 

An assembly line is used to manufacture the Flower Pot Pens, with seven different stations.  They are as follows: 

Station #1       The ends are removed from each of the pens.

Station #2       Green floral tape is wrapped around the pens.  Halfway down the pen the tape is cut and a flower leaf is added.  The rest of the pen is then covered with the green floral tape.

 Station #3    The top of the flower is glued onto the pen where the end was removed.         

 Station #4     The pots are painted in various colors and styles (some are solid, some are sponged, etc.)

 Station #5  The pots are varnished.  Fifty percent are painted and then varnished, while the other fifty percent are varnished unpainted.

 Station #6     The final product is put together.  The kidney beans are added tothe pot and three pens are placed in it.

Station #7     The products are inspected for quality, and if deemed fit, they are labeled with a JA sticker.  If deemed unfit, they are sent back to the assembly line to be fixed.

 By using the assembly line approach identified above, we expect to produce forty units each week.  At that production level, a ready supply of product will be available for sale.  At twenty-five units per week for twelve weeks of production, the supply for the sales goal of 300 units can be met.  Should demand for the product fluctuate then production levels will be modified accordingly. 

 The total cost to make one Flower Pot Pen is $2.58, however, an additional five percent was allotted for scrap, such as broken pots or dead pens, and purchase of required tools. With the addition of five percent, the cost to make one unit is $2.71.  To sell 300 units, we will require $813.00 to purchase raw materials.  The product will be sold for ten dollars each.