Economic+Factors

Economic Factors
Our Supply is an economic want, because you wouldn’t need the product it would just be for enjoyment. Natural Resource: Gas Capital Goods: Machines and money Labor: people i) If we choose to limit the number of products that we made and offered for sale, therefore lowering the supply, our product would be worth more. ii) If we decided to change your production levels for the next year, and chose to make a large number of products and offered them for sale, our product would be worth less iii) If another company saw that we were having success and decided to begin making a very similar product what would happen? The demand for our product would go down; we would then have to lower the price. Unicycles.com and bicycleworld.com would be some competitiors.

2 similar products: The Electric Unicycle: $1500.00 SBUV2.0: $1499.00 = Honda U3-X: $650.00 = Our product is better quality, looks better, and is easier to use because you don’t have to do anything while riding it like using a petal.

We think our item should be about $550.99 +tax

Price – Cost to Produce = Profit 1750-1050=700 Price / Cost = Percentage Markup 1750/1050=16%

ProfitPercentage Markup: 16% <span style="color: #000080; font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 150%;">Produce Product for: $650 7

<span style="color: #000080; font-family: 'Palatino Linotype','Book Antiqua',Palatino,serif; font-size: 150%;">Profit: $700

<span style="color: #cc99ff; font-family: Tahoma,Geneva,sans-serif; font-size: 130%;">Expansion- It might be bad because the people in other countries may not like our product and it would make us lose money, but if they do like the product then it will help us to gain popularity and also money and business in many other countries. <span style="color: #cc99ff; font-family: Tahoma,Geneva,sans-serif; font-size: 130%;">Peak- It would be good at the time because we would be doing very well in our business and making lots of money. <span style="color: #cc99ff; font-family: Tahoma,Geneva,sans-serif; font-size: 130%;">Contraction- we would lose lots of money and may end up having to let go some of our employees or start cutting costs. <span style="color: #cc99ff; font-family: Tahoma,Geneva,sans-serif; font-size: 130%;">Trough- We could become bankrupt and may end up having to shut down the business. We would have to come up with a business plan and use all our money wisely. <span style="color: #752f98; font-family: Tahoma,Geneva,sans-serif; font-size: 140%;">
 * President of Sales: **
 * Abby Coulthard **


 * President of Customer Relations: **
 * Matthew Nicholson **