I am no accountant...yet :) But I believe all this has to do with what the
company's fixed costs are and the variable costs related to production and
number of units sold. They then come up with a break even point to cover those
costs before they see a profit. I don't think you can just assign a simple
factor to the manufacturing cost to come up with the retail price for one unit.
But I am still learning..hihi.
73
Greg
AB7R
----- Original Message -----
From: Jim Reid
To: tentec@contesting.com
Sent: Monday, March 10, 2003 4:05 PM
Subject: Re: [TenTec] Misc. Orion comments
> Manufactured cost X 5 = Retail price.
Manufactured cost = prime product assembly labor
and materials, only.
For a Growing company, x 6 those two factors alone
will pay all other costs, marketing, equipment, G&A, rent,
etc., etc. and also enough profit to keep on investing
in new products and employees. Tain't all profit and pocket
money, hi.
73, Jim KH7M
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