The study results shows that the new product has great chances of recording high sells and profits within the target market. Nevertheless, this success is possible only if the company considers what is needed most by the customers. It was found that most customers would be looking at the overall superiority of the new product.
Leo Wahl established the Kitchenware Products Company in the year 1919. Since inception, the company has been a leader in the production of quality kitchen utensils mainly from stainless steel. In addition, the company has been a major producer of simple electrical appliances for kitchen use. Currently, the Kitchenware Products Company operates within an organizational tradition of superior customer service, innovation, and superior quality. Wahl keeps on changing to a new and a better ways of effectively meeting the needs of their customers. With such efforts and frequent changes, the company ensured that products are continuously developed to meet the needs of the current modern households as it is required in product development processes (Bhote, 1996). Wahl is a brand with a global presence and trust. This brand is based on the company’s founder, Leo Wahl. As at now, the company operates in an estimated 165 countries throughout the world. The company is currently considering the manufacturing and marketing of a new product. a new type of curving knife. The company has done a general approximation, and the results indicate that 40,000 units of the new product will be sold during the first year. This sales quantity is projected to increase by an average of 10% in the preceding years.
The variable costs for every production unit have been approximated in three ways. The variable cost of. a raw material per unit is 3.00, packaging is 0.90 per unit, distribution is 1.00 per unit, and direct labor is 2.00 per unit.§