Products costs - process costing
Machine Costs - $500,00/brand new machine
- Machine 1 : Sparrows the Blank
- Machine 2: Straight Flute/Sharpens
Machine Cost TOTAL: $1,000,000 with 20 year warranty per machine
Titanium Coating - .30 per bit
Staples/Cards/Shipping - .45 for both printed card and staples - Variable Cost for Shipping
Labor - Variable depending on Order amounts -
Retail vs. Wholesale ( 10,000 pieces qualify wholesale)
- Retail Price: $5.95
- Wholesale: $3.00
COST TO MAKE UNIT: .75
Normal Loss - 30%
Abnormal Loss - 20% (maintenance Costs)
Finished Goods - 300,000 pieces/units**
Scrap - 30,000**
**300,000 on Average are made each year. 10% or 30,000 of them end up as Scrap, resulting from faulty machinery or by laborers.