![]() Some of the comments made at the meeting are: Lisa: We’ve got a real problem with these first-pass estimates. Seeing that the current costs consume almost all of the company’s selling price, Lisa Adams, VP of manufacturing, calls together the design team. The resulting target cost and current estimated costs for producing the two vacuum models are in the table below. The company likes to make a 25% profit on all of its models. The company sells its vacuums to the distribution channel at roughly 60% of the retail price, making the target price for the ES 600 model $144, while the target price for the ES 800 model is $174. The ES 600 will retail at $240, while the commercial-grade ES 800 will retail at $290. They plan to produce two models, the ES 600 and the ES 800. Easy Sweep’s management has recently decided to enter the market for bagless vacuum cleaners and has designed a product that meets the company’s high-quality image. It is now a multibillion-dollar producer of high-end vacuum cleaners using an international distribution network of retail outlets and specialty shops. It has been making vacuum cleaners for more than 50 years, starting with one small model that was sold door-to-door. Easy Sweep makes vacuum cleaners for both residential and commercial customers. Vacuum motor helps recover debris, and keeps dust out of the air, especially on concrete floors.CASE 6.1 TARGET COSTING AND VALUE ENGINEERING.Center cylindrical brush sweeps everything into a large recovery hopper.Side edging brush pushes debris from corners and edges to center of the machine.24" sweeping path cuts down on repeat passes, by maximizing recovery area.Can sweep up to 30,000 square feet per hour at its maximum performance level.Works great on indoor or outdoor dry surfaces, especially warehouses.Battery powered for a maximum of 2.5 hours of run time, with a 5 hour charge time.Cordless sweeper can be run on either a hard surface or a carpeted floor.Many employers find they can cut as much as 2 hours of labor per day with this wide-area sweeper vacuum! If you are looking for a larger machine, or something smaller for indoor, or outdoor use, take a look at our complete line of walk behind concrete floor sweepers. If you save an average of 30 minutes per day on cleaning, that's an average saving of 14 hours of labor per month. At the current cost, the concrete warehouse sweeper will pay for itself in as little as 3 months with the amount of labor hours it will save you. The "EasySweep" has never been offered at such an affordable price. This helps in controlling the amount of dust in the air, and recovering the maximum amount of debris on concrete, sport court, rubber, vinyl, tile, and carpeted floors. The automatic shake-out filter makes sure that the maximum amount of dust is captured. The 24" sweeping path covers a large area, for the minimum amount of passes on each job. The machine weighs 120 pounds, which makes it easy to transport from job to job. And with a 2 to 2.5-hour run time, depending on the surface you're sweeping, you can easily sweep a 60,000-square-foot facility on a full charge. The CleanFreak EasySweep comes with a 12-volt maintenance-free battery and an on-board battery charger so you never have to worry about dragging around a power cord. This is the perfect machine to use before scrubbing your floors with an walk behind automatic floor scrubber. The vacuum also helps to control the spread of dust and fine materials. The front edging brush pushes debris and dust into the center of the path, while the large bristle cylindrical broom sweeps everything into the large 9-gallon hopper. This concrete floor sweeper excels in wide-open areas, like those found in a typical warehouse.
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