4.1 Economic Value Analysis (Figures 4-12 and 4-13)

Analysis
Cost of Purchase Generic Category Specific Cost Product A Product B Lifecycle
Savings
AirCap
Competitor
Price Paid (after discounts and rebates)
Packing Material
$1.05
$
$0.80
$
0.25
Delivery Cost
Shipping Cost
$2.40
$
$2.60
$
0.20
Packaging
Packing Box
$0.55
$
$0.55
$
0.00
Inventory (holding cost)
-$0
$
-$0
$
0.00
Financing Costs (loan interest)
-$0
$
-$0
$
0.00
Owning Costs (insurance)
-$0
$
-$0
$
0.00
Usage Costs (cost to use)
Labor to Pack
$0.13
$
$0.83
$
0.70
Maintenance
-$0
$
-$0
$
0.05
Disposal Cost
-$0
$
-$0
$
0.00
Re-Sales Value (negative number)
-$0
$
-$0
$
0.00
Lifecycle Cost and Economic Value  
4.18
4.88
0.70
Starting Data
Cost of Purchase Generic Category Specific Cost Product A Product B Lifecycle
Savings
AirCap
Competitor
Price Paid (after discounts and rebates)
Packing Material
$1.05
$
$0.80
$
0.25
Delivery Cost
Shipping Cost
$2.40
$
$2.60
$
0.20
Packaging
Packing Box
$0.55
$
$0.55
$
0.00
Inventory (holding cost)
-$0
$
-$0
$
0.00
Financing Costs (loan interest)
-$0
$
-$0
$
0.00
Owning Costs (insurance)
-$0
$
-$0
$
0.00
Usage Costs (cost to use)
Labor to Pack
$0.13
$
$0.83
$
0.70
Maintenance
-$0
$
-$0
$
0.05
Disposal Cost
-$0
$
-$0
$
0.00
Re-Sales Value (negative number)
-$0
$
-$0
$
0.00
Lifecycle Cost and Economic Value  
4.18
4.88
0.70
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