The greatest improvements from this arise from simplification of the product by reducing the number of separate parts.

Discuss the concepts of Product line , Product item, Product mix and explain how they are connected?

Original design involves  the development of a process, assembly, or component that previously existed.  Product decomposition is commonly known by “ benchmarketing”.  True or False?

Cannibalization Analysis The "Bare Bone" model has a list price of $2.99. UVC is $1.50 and projected sales for the year is 2,000,000. "Bill" retails for $3.99 with a UVC of $1.79 and has a sales forecast of 500,000. Projected first year sales of "Bodacious Bill" is 1,000,000 units. Fixed costs to enable insertion of audio sound effects for "Bodacious Bill" will be $2M for the first year. The "Bodacious Bill" will have a 50% markup on the breakeven price. Unit cost (breakeven price) = unit variable cost + (fixed cost/# of products produced). List (markup) price = unit cost * (1+ desired % markup on the retail price). Unit variable cost, including technical parts, add up to $4.99 What would be the list price on Bodacious Bill to break even? 50% of first year sales would be incremental. Of the remaining volume, 80% will be cannibalized from "Bill" sales and 20% would be offset with "Bare Bone" volume.