SFI Testing of head and neck systems

Originally posted by Geo:
...Now, marginal cost is not quite the same thing because it does not account for the cost of setting up the operations (a very real cost). But, none the less, I would even wager that marginal cost is well over $100. Sure I'm not a materials engineer, but I have a long history in manufacturing cost accounting and I have significant experience in this subject.
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I know you are a very skilled accountant George, so I will defer to you on the definitions. I took some accounting in grad school but made a point of staying away from all that cost stuff.
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My perspective is more from that of managerial accounting as opposed to financial accounting, so I'm keeping it pretty simple. Considering a BE analysis, and backing out the overhead allocated to direct labor, the incremental cash needed to make a marginal unit will be materials, labor (w/o said allocations) and incidentals such as power to run machinery and perishable tooling.

I'm throwing out all fixed everything, including non-perishable tooling.

Let's say you're right at $200. The contribution margin drops from $7.2mil to $6.4mil.

I know! We should hammer out the details of this analysis over a couple brewskies at Bill's RV during the '05 ARRC.

<font face=\"Verdana, Arial\" size=\"2\">Let's not be too misleading here.  That would be like saying an Isaac is a little aluminum, some dashpots and a few bolts.  We both know that's not true either.</font>
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Of course not. We had to import that special Kryptonite/Pixie-dust alloy from the planet Zorgon. Shipping was a killer.

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Gregg Baker, P.E.
Isaac, LLC
http://www.isaacdirect.com

[This message has been edited by gsbaker (edited February 28, 2005).]
 
George:

You're kind of right, but there are ways to get stuff in the size you need with minimal cutting. With most composite processes, the pressures are relatively small so a minimum of tooling is necessary.

This will all become more clear in the next months...

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Bill
Planet 6 Racing
bill (at) planet6racing (dot) com
 
Originally posted by gsbaker:
Of course not. We had to import that special Kryptonite/Pixie-dust alloy from the planet Zorgon. Shipping was a killer.
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NEVER under-estimate the engineering that goes on at Isaac!
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FWIW, I'm looking at it from the same perspective. One thing I do think is misleading is using this approach. Contribution margin doesn't reflect the cost of bringing a product to market. It's a tool to consider additional marginal sales.

You're on for discussions over beer. They are always the best.
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Originally posted by planet6racing:
George:

You're kind of right, but there are ways to get stuff in the size you need with minimal cutting. With most composite processes, the pressures are relatively small so a minimum of tooling is necessary.

This will all become more clear in the next months...
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I understand Bill. But I think costs to actually produce a produce are under-estimated by most people. My concern is that people think businesses are ripping them off because of a perceived cost (and that goes for H-D, NISsport, Isaac, or any business).

I have wondered if the HANS is autoclaved. Probably not.


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George Roffe
Houston, TX
84 944 ITS car under construction
92 ITS Sentra SE-R occasionally borrowed
http://www.nissport.com
 
Originally posted by Geo:
...My concern is that people think businesses are ripping them off because of a perceived cost (and that goes for H-D, NISsport, Isaac, or any business).
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I agree.

<font face=\"Verdana, Arial\" size=\"2\">I have wondered if the HANS is autoclaved.  Probably not.</font>
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I'm guessing not.

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Gregg Baker, P.E.
Isaac, LLC
http://www.isaacdirect.com
 
I know I am late to the party, but George...looking at that picture...I don't remember you sporting braids when you were at the ARRCs...are those new??
(Fast grower)

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Jake Gulick
CarriageHouse Motorsports
ITA 57 RX-7
New England Region
[email protected]
 
Originally posted by lateapex911:
I know I am late to the party, but George...looking at that picture...I don't remember you sporting braids when you were at the ARRCs...are those new??
(Fast grower)
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My legs didn't look that good either.

You must have had too many Shiner Bocks.
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George Roffe
Houston, TX
84 944 ITS car under construction
92 ITS Sentra SE-R occasionally borrowed
http://www.nissport.com
 
Originally posted by Geo:
My legs didn't look that good either.

You must have had too many Shiner Bocks.
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I think that young lady had too many Shiner Bocks, and there's no telling what he is on.

G
 
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