Business Logic Plan

[JulianH]

At FS 2012, the cost is the exact number of your cost report. It doesn't matter if you want to sell 10 or 1000 cars.

Last year we took (Selling Price-Cost of car)*Number of Cars sold as revenue. I think we assume that "all costs" are in the cost of the car.

[DSR]

Originally posted by FSTT:
1) As I understand, cost from cost report would apply only if the sales volume is 1000, as the cost report gives the cost assuming we produce 1000 cars per year. Which cost should we use if we produce and sell 20 cars per year?

2) For target annual profit, did you take into account other costs as well? Overheads? In that case target profit does not equal total revenue minus total production cost, right?

1) The cost report gives the cost of producing one vehicle, whether you produce 100 or 1000 in a year.

2) Logically, it should be, Profit = {(Selling Price - Cost) x No. of Vehicles sold per year} - Overheads (Marketing expenses, etc... but this list can be too long).

But, my doubt still remains - How to decide the selling price of the car and the no. of units sold per year ?

Can I assume any selling price and any sales volume per year, while keeping a check that the sales volume should not cross the max. volume corresponding to the selected selling price from the given table ?

[wbertrand]

But, my doubt still remains - How to decide the selling price of the car and the no. of units sold per year ?

Can I assume any selling price and any sales volume per year, while keeping a check that the sales volume should not cross the max. volume corresponding to the selected selling price from the given table ?

I believe that the selling price should be determined using the real world market. So, I researched companies that made F1000 and F500 cars, saw what kind of features they had (monocoque chassis, engine specs, overall weight) and how much they cost, and scaled it for FSAE and what kind of features our car will most likely have.

[IITStamen]

Hi all I have a few questions.

1)When considering the total cost of producing the car do you include cost of labor?

2)Do you include donated or sponsored parts/materials in your total cost?

Thanks,
Stamen IIT MotorSports

[wbertrand]

1)When considering the total cost of producing the car do you include cost of labor?

2)Do you include donated or sponsored parts/materials in your total cost?

I do not think labor will account into the total cost, at least for us since it is so difficult to 1.) find a "wage" to fit everybody regardless of skillset and 2.) get anywhere close to an accurate figure into how many man hours were actually used.
As per including donated parts and material, I believe the answer to your question is yes you take into account the value of those donated items, much like what is done in the Cost Report.

[dlobato]

I thought labor costs were in the cost report files?

[wbertrand]

I thought labor costs were in the cost report files?

Apologies. I forgot that they have ways to account for "labor" in the cost report. I was thinking in more general terms, but it would be wise to use those guidelines in your price.

[Fikri Aulia]

for all,
where we sumbit the business logic case form? at the web of the event we participate or at the fsaeonline.com ?

thanks before
Fikri, Bimasakti Indonesia

[JulianH]

It depends on the event you want to participate...

[Shubhang MIttal]

Is it necessary to calculate fuel economy for electric vehicles? If yes how do I proceed?