ZLL PRQLUCT DLELOPMENT PLANS FQl1975 The recommended Product Development budget for 1975 is $1,067, 100 compares with a 1974 budget of 8960, 000 and an This estimated ex penditure in 1974 of $1, 100 0uo_ Thc major factor in the $140 000 fverage for 974 was Lhc grcater than anticipated expenditure in lhe area of material shortages The increased. expendilure resulted both from the total number Of tests required and extra sample quantities produced for' follow-up tests at 3 or 4 from the months aging Of secondary importance was the unanticipated high level of activity in valuating new packaging designs The recommended 1975 budget ~eflects following considerations: the The number of samples to be produced 975 will be 10% fewer than 974 The cost of sample production will increase for some tests because of an anticipated increase the_ use of masked samples It is anticipated that per sample production costs will increase by 10% in 1975 _ It is estimated that the total cost effect of ilem will be offset by expected improvements in_sample production efficiency; lower perccntage of 1.C makes required: the 1975 recommended budgel is as follows the Based above, New Product Development 204, 000 Product Improvement 779 200 L Product Monitoring 900 TOTAL S1_ 067, 100
ZLL PRQLUCT DLELOPMENT PLANS FQl1975 The recommended Product Development budget for 1975 is $1,067, 100 This compares with a 1974 budget of 8960, 000 and an estimated ex penditure in 1974 of $1, 100 0uo_ Thc major factor in the $140 000 fverage for 974 was Lhc grcater than anticipated expenditure in lhe area of material shortages The increased. expendilure resulted both from the total number Of tests required and from the extra sample quantities produced for' follow-up tests at 3 or 4 months aging Of secondary importance was the unanticipated high level of activity in valuating new packaging designs The recommended 1975 budget ~eflects the following considerations: The number of samples to be produced will be 10% fewer than 974 975 The cost of sample production will increase for some tests because of an anticipated increase the_ use of masked samples It is anticipated that per sample production costs will increase by 10% in 1975 _ It is estimated that the total cost effect of ilem will be offset by expected improvements in_sample production efficiency; 1.C lower perccntage of makes required: the above, the 1975 recommended budgel is as follows Based New Product Development 204, 000 Product Improvement 779 200 L Product Monitoring 900 TOTAL S1_ 067, 100