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Business proposal - Coursework Example

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They require cotton, and synthetic fabric in order for the gloves to be ready for use. The concentration or less of cotton required would vary depending on the use of such gloves. If the gloves…
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Download file to see previous pages If the farmers produce more cotton then prices would be lesser to acquire for subsequent production.
It is important to note and mention that the leather that would be needed or required is the aniline leather which must have been buffed- a term referred to as full grain. This is so because the texture and finesse of such leather would be subtle to ensure the hands of boxer do not ruffle or hurt during contact or impact to a boxing bag. Waxed linen thread would be useful and beneficial to ensure the tilts fix and form well and perfectly. However, cotton polyester threads would be used to sew the cotton inside while linen threads would be used for tilts. The cotton fillers would be used, but a variety in the concentration would be considered depending on the use of the gloves.
Direct labour cost would be divided thrice, the first is the sorting of cotton in terms of finesse. This requires manual laborers who would charge a range of $250-$300 per barrel. The second is the sewing stage where people use machines and would charge $350 per barrel of cotton which would produce 200 pairs of gloves (Golomb 7). The last stage is the finishing where synthetic fabric is waxed and polished by professionals according to world standards. These specialists would charge $400 and the gloves would be ready for market.
The overhead costs incurred would be in transporting the finished goods to the prospective markets. This is so because gloves are sold by sporting agencies such as Adidas, thus, the company would incur services of Adidas as selling agents. It goes without saying that as a company, we would pay agency cost to Adidas or any other sports company because they would sell our merchandise on our behalf. Thus, their wages and pay would not only be based on commission thus, their wages would be overhead cost.
Customers usually require highly polished synthetic covers because they are easy to customize in ...Download file to see next pagesRead More
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