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WA04: Compute plastic injection fabrication cost

CU Work WA05: Compute plastic injection mould indirect cost
Activities WA06: Compute plastic injection mould overall cost






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1.0 Machining cost

The estimation of machining time element starts with a careful study of the blue
print of the product and its components. If necessary, a fresh working drawing should' be
made for any missing drawing of a component. At this stage the estimator proceeds with
the work with an operation sheet that has been prepared by himself or supplied by the
planning department. An operation sheet has been shown elsewhere in the earlier
chapter. In this sheet, the main problem is to choose the proper values of speeds and
feeds for the operations if the same have not been given by planning department.

1.1 Operation efficiency

Cutting efficiency is depending greatly on cutting speed, feed rate and depth of
cut. While for milling operation, the efficiency depends greatly on the milling speed. If the
speed is too slow, it will be time consuming; and if it is too fast, the tools will be burned.
Therefore, choosing the right cutting speed and feed rate is very important in order
toobtain good quality work piece and cost saving in tools used.

1.2 Cutting Speed

In all the machining operations the cutting is either done by a single cutting edge
or a number of cutting edges. The cutting is achieved by employing a relative motion
between work piece and the tool. This means either the cutting tool is stationary and the
job is moving, tool is moving and job is fixed or both are moving as in turning, milling,
shaping, grinding etc. The selection of speed is a hard job and is always done on a
compromise basis. Every person who knows his job thoroughly prefers his own method
for selecting the cutting speeds. In principle, the main consideration to choose the cutting
speed is the tool-work pair. It is advisable that new comer encountering such a problem
should go by this consideration and pick up an average value. It would be always useful if
the following points are considered :

a) For a higher rate of metal removal, which means heavier feed and depth of cut,

prefer a lower value of cutting speed from the range.

b) While carrying out finish machining, choose lower values of feed and depth of cut

and higher values of cutting speed.

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c) The use of coolant helps in adopting a higher value of cutting speed.

d) Select a Iower cutting speed if the machine tool is an old machine or its capacity

is small.

e) Where a longer tool life is a major criterion, use lower cutting speed, or if the tool

fails prematurely use lower cutting speed.

f) Some times a new material is given for machining for which no data is available,

then it is advisable to use an averag~ speed of a material whose hardness is

equal to the new material.

Table 1.0 : Cutting speed for high speed steel and carbide
High Speed Steel Carbide
Material (m/min) (M/min)
Machine steel 21 - 30 48 - 75
Tool steel 18-20 40 - 60
Cast iron 15 - 25 40 - 60
Bronze 20 - 35 60 - 120
Aluminium 150 - 300 150 - 300

There are several factors affecting the cutting speed, which are as below:-

a. Depth and width of cutting

b. Shape of tools used

c. Sharpness of tools used

d. Work piece material

e. Types of finishing used

f. How the work piece is tighten

g. Centre line of tools used

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1.2.1 Formula for cutting speed calculation

Usually cutting speed of a milling tool can be determined from table. Therefore cutting

speed is in the unit of rotation per minute (RPM).

Rotation per minutes (RPM) = Cutting speed (cs) x 1000

Diameter (d)

cs = cutting speed

d = diameter of tool (mm),

= 3.142

Example 1:

Calculate the spindle speed in rpm for milling tool with diameter 50mm with the cutting

speed is 3 meter per minit.

Rpm = 33 1000

rpm = 33000

rpm = 210

Example 2:

Calculate the spindle speed in rotation per minute for end mill with diameter of 50mm,

cutting speed is 25 meter per minit.

rpm = 25 1000

rpm = 25000

= 160

Example 3:

Calculate the cutting speed of an end mill with diameter 5cm and 160 rpm.
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Convert 5cm to mm

1cm = 10mm

5 x 10 = 50mm

Rpm = cs 1000

cs = rpm x d

cs = 160 x 3.14 x 50

= 25 meter per minutes

1.3 Feeds

Only the tool advancement in one direction is not sufficient to machine a surface. It
has to move in a perpendicular direction to produce a surface. This kind of tool
movement is called feed. In the case of turning, the feed (f) of the tool is the axial
advancement of the tool in one revolution of the work piece. It is then expressed as
mm/rev. In shaping plaining or slotting, the feed is the advancement of work-piece in a
direction perpendicular to the tool during one complete stroke of the ram. The feed is
expressed as mm/stroke.

The feed (f) is defined in slightly different manner in milling. The work is
continuously moving towards the cutter at a certain rate to perform the action. This
movement is called the feed of the table in mm/min. As the cutter makes n revolution in
one minute, the feed of the cutter (fc) is obtained by L and expressed as mm/rev.
Similarly, if a cutter has 't' number of teeth then the feed (f) can also expressed as
mm/tooth. The situation in grinding is very much like milling but there is no feed for the
cutting edges. Only the table feed (f) and the wheel feed (fw) are of importance.

1.3.1 Factors influencing speeds and feeds

Selection of feeds and speeds is always done on a compromise basis. Some of the factor
be considered when specifying speeds and feeds are :
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(i) The type and rate of desired material being cut.

(ii) The surface finish required.

(iii) The rigidity and shape of the work uniform sections, long thin sections,
areas or interrupted cuts.

(iv) Condition of the part as received e.g. rough casting, forging, annealed or
cold finished bar stock.

(v) Capacity and condition of the equipment available.

(vi) Tool life based upon optimum conditions for the lowest total cost/piece.

In the case of turning, as the cutting proceeds, the cutting edge traverses over the

work surface. If D is the diameter of the work-piece in mm and n is the rpm at which the

job is rotating, then the cutting edge traverses a distance 7TDN mm in one minute. The

traversing rate of the tool is called cutting speed of the lathe tool. It is also known as

surface speed and can be determined by the following relation.

v = 7TDn mm/min

1.3.2 Feed rate

Feed rate is known as the rate of table move feeding the tool which is turning. Feed rate

is affected by :

a. Width and depth of cut

b. Design and types of face mill

c. Work piece material

d. Sharpness of face mill

e. Types of finishing

f. How the work piece is tighten

Table 1.20 below shows chip per tooth, cpt recommended for steels commonly used in
industry. cpt is the amount of raw material to be cut off by every tooth cut.

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Table 1.20 : Chip per tooth, cpt (High Speed Steel Cutters)

Table 1.30: chip per tooth, cpt (Cemented-Carbide-Tipped Cutters)

1.3.3 Feed rate formula

Feed rate = total teeth (n) X chip per tooth (cpt) X rotation per minute (rpm)

Example 1:

Calculate the cutting feed in mm/minute for helix mill with 6 teeth, diameter 75mm when

milling a cast iron with cutting rate 60 meter/minute.

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rpm = cs 1000

= 60 1000

= 254.6

Feed rate = 6 0.25 254.6

= 382 mm per minit

Example 2

Calculate cutting feed in mm/minute for gear cutting tool with diameter 50mm and 12

teeth at a rate of 0.08 mm/tooth, cutting speed 33 meter/minute.

Rpm = cs 1000

= 33 1000

= 210

Feed rate = 12 0.08 210

= 201.6 mm per minit

1.3.4 Estimation of Time in Turning Operation

The use of cutting speed, feed and length of run made in estimating the time.

Cutting speed = Dn

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n = 1000V rev. per min


f = feed per revolution

Axial traverse of the tool on the work/min.

a) Plain Turning

If the length of work piece is L, then

Turning time T = L min


= DL vxf

Example 1:

Estimate the time for turning a 50mm brass rod of 200mm length down to 31mm

diameter. The cutting speed for high-speed tool-brass is 100m/min and feed is 0.20


since V = 1000 x 100

x 50

= 636 rpm

Time for the first pass = L

636 x 0.2

= 200
636 x 0.2

= 15 min (approx)

Total machining time = 2T

= 3 minutes

b) Relief Turning

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Relief is a small reduction in the shaft or bar diameter over a certain length. It may
be provided on the outer surface or internal surface of a bore. The respective terms used
are external relief and internal relief. The estimation of time is done exactly on the same
ine with one difference that it requires a two pass turning.

Example 2:

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In a cast iron component having a 35mm cored hole, an internal relief is to be provided
over a length of 150mm. Determine the total time to machine the bore and turning the
elief in the component. Here cutting speed may be assumed to be 15m/min and a feed of


This involves a boring operation and therefore, the diameter is finished in passes with

depth of cuts equal to 3/2mm and 1mm

Machining time T = L D
1000 v.f

= 200 x 22 x 35 x 1
1000 7 15 0.10

= 14.6 min

Total machining time to finish the bore to 40 mm size = 29.2 min

The third step in the calculation is to determine the turning time for the relief in the bore.


42 minute in finishing a job like this, appears to be a high figure. In the case of boring the
cutting has to be done at lower feed because of the large overhang of the tool. A high
feed is detrimental to the cutting edge and the surface finish of the component.

c) Facing

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The facing operation on a lathe is meant for preparing end surface of a cylindrical
workpiece. The tool, which is a single point cutter, is fed across the axis of the work piece
over the end held on the dead centre (fig.10.04)

The tool moves outwardly starting from a point which is nearest to the axis, the piece is
required to run at higher rpm than when the tool is required to run at higher rpm than
when the tool is at outer end to maintain a constant value of cutting speed. This
continous variation is not possible on the kinds of lathes available in the shop. Therefore
an average value of rpm is worked out with help of work diameter (Dave).

Time for facing = L Dave

1000 v.f

Example 3:

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Calculate the machining time to face the dead center end of the work-piece of a 400mm
m.s rod, if the cutting speed for tool work-pair is 30m.min and crass-feed as 0.2mm/rev.

Example 4:

Calculate the basic drilling time to drill a 10mm hole on 50mm thick m.s basic the
cutting speed and feed are 17m/min and 0.30 mm/rev.


Rpm = 1000 x v

= 1000 x 17 x 7
22 x 10

= 540

Machining Time = 50 +10

0.3 x 540

= 0.37min

= 22.2 secs

A drilling machine may also be used for other allied operation like counter-sinking,
counter-boring and tapping. The basic time for these operations can also be calculated
on the same line. A judicious selection of feed and speed is the main consideration.

Example 5:

If the above hole is to be enlarge to 20mm diameter, determine the drilling time using
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cutting speed 25m/min and the feed 0.35mm/rev.

Solution :

rpm = 1000 x 25 x 7
22 x 20

= 398 rpm

Drilling Time = 50 + 10
0.35 x 398

= 0.43min

= 26 sec

2.0 Estimation of milling time

Like lathe, milling machine is also a very versatile machine tool. Hardly it could be
missed in a workshop because it can perform many kinds of precision work which could
not be done on any other machine tool except a few special purpose machine tools. The
machine employs a multi-edged rotating cutter either of high speed steel or with inserted
carbide teeth cutter. The cutter produces a flat surface except in few cases where it
produces profiles with from cutters.

The milling time is calculated by dividing the length of cut with the product of
number of revolution and feed per revolution. The length of cut is obtained by adding the
allowances for cutter approach, and cutter over travel.

Time = Length of cut

Number of rev. of cutter x feed per rev

The length of cut is obtained by adding the allowances for cutter approach, and cutter
over travel.

i) Cutter approach and over travel in facing. Fig.10.10

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In the case the approach is a part of the length over-travel can be computed with the

following relationship:

Over travel = D - 1 D2 w2
2 2

D = diameter of cutter

w = width of the job

ii) Cutting approach and over-travel in slab milling/slot milling. Fig. 10.11

Example 1:

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A 300 x 50 cast iron surface is to be face milled with a carbide cutter. The cutting speed
and feed are 50m/min and 50mm/min. If the cutter diameter is 80mm and it has 12
cutting teeth determine the milling time, cutter rpm and feed tooth.

Solution :

The milling is done in single pass fig. 10.12. The value of approach A is 40mm and over

run is calculated as shown below:

Example 2

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A key way is to be cut on a shaft over its entire length. Calculate the approximate time if

the cutting speed is 30m/min , feed/rev = 0.08mm, and cutter diameter is 100mm.

2.1 Machining time calculation

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Machining time, T = Total mill length, L

Feed rate, f

Table 1.40: Length or mill travel distance

Normal milling Rough milling Finishing milling

L= l + n + u L= l + d/2 + 2 L= l + d + 4

Length or machine travel distance depends on length of milling, type of cutter used and

operation to be achieved.

L = overall milling length (panjang keseluruhan kisaran)

l = work piece length

a = early distance

u = after mill distance

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d = mill diameter

T = machining time

f = feed rate

n = rpm

Example 1:

Calculate machining time needed to machine a cube which is 30mm2, 200mm length

with feed rate 100mm/minute. Early distance is 25 mm and cross over 5mm.

L = I+a+u

= 200 + 25 + 5

= 230mm

Machining time (T) = Overall milling length (L)

Feed rate (f)

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= 230 (mm)
100 (mm/s)

= 2.3 sec

Example 2:

A T-slot is to be cut on a cast iron table as per details given in the fig. below. Layout the
sequence of the procedure and then estimate the machining time. Neglect tool approach
and over run.


a) Cut 15mm wide x 35 mm deep channel along the length

b) Mount 2 slab mill cutters 85mm long x 75mm dia on an arbor with 10mm spacer
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c) Mill the surfaces A and B

d) Shift the job to a vertical milling machine and cut the T-slot with a T-slot cutter Let the

cutting speed for face cutter and slab mill cutter be 15m/min and for T slot cutter be

10m/min. Also the diameter of side and face cutter be 120mm. The value of feed be


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4.0 Labor estimation

Another important part of product costing has been recognized as labor cost.
Depending upon the nature of operation, it may range from 10 to 40 percent of the total
cost. In most of the chemical production, the labor cost is about 10-15 percent and
material cost 75 to 80 percent; while in the case of textiles garments it may be up to 40
percent of the total manufacturing cost.

4.1 History of labor cost

Before the revolution of industry, labor cost is one of the most costing element in a
manufacturing process. After revolution, labor cost is minimized with the present of
machines and tools to substitute manual workers. Labor cost is calculated based on total
working hour, labor status (permenant, contract, part time).

4.2 Definition of labor cost

Labor cost is defined as salary paid to workers who involved in producing a


4.3 Labor cost calculation method

Labor cost can be calculated based on salary, total working hour or work

Salary total amount of money agreed to be paid monthly without considering

total working hour.

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Working hour depending on working days / daily rate basis.

Work produced payment is made depending on amount of products produced

without considering working hour.

4.4 Types of labor cost

1) Direct labor - cost of labor directly used for making a product.

2) Indirect labor - cost of labor, which is not used directly for completing the job or


3) Labor-related costs - these costs are not in any way directly or indirectly

related with the job or product but the costs related to the labor force-such as

premium pay, holiday and vacation pay, and other benefits to the labor.

Labor cost is controlled by the following departments of a factory:-

Personnel department

Planning department

Time and motion study department

Time keeping department

Cost accounting department

Payroll department

5.0 Labor hour

Method used to analysis and determined labor hour are

a) Round Table - opinions from expertises involving in the relevant field.

b) Comparison use overall data collected from previous.

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c) Standard Labor a fix time is given to accomplish certain product.

5.1 Labor rate

Several factors are considered while determining the labor rate. Among the factors are :-

a) Labor rate development

b) Analysis labor rate

c) Labor rate agreement

d) Labor law

e) Overtime concept

5.2 Method to prepare labor rate

There are two method used in preparing labor rate: -

a) Individual labor rate

b) Average labor rate

5.2.1 Individual labor rate

Advantage: -

a) Choose the most suitable personnel to involve in a certain project.

b) Labor rate is fixed by employer.

c) Payment is made based on gross salary and ability of employer.

Disadvantage: -

a) Not practical if is in a big scale company.

b) Involved personnel not able to accomplish project given ontime.

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In determining labor cost, one may encounter the following

Situation :

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6.1 Introduction
Costing is an important part in any project. This is the stage that indicates
the capabilities in taking any job. Some experience organization, they can judge
the price of the job by rules of thumb at the first view of the job, nevertheless, the
specific costing has to be made for the efficiency of the overall price. For the
purpose of this project, the costing are largely depend on the current price for the
material and also for the wages of the personnel involved. In rental consideration,
the market price is obtained from the company involves in the mould making.

6.2 Mould Cost.

6.2.1 Standard Parts

(The cost depends largely on material and suppliers)
a. Mould base (1 set) = RM 2058.00
b. Ejector pin (14 pcs) = RM 98.00
c. Sprue bush (1 pcs) = RM 25.00
d. Core and cavity insert = RM 160.00
e. Locating ring = RM 75.00
f. Bolt, nipple, Cap screw = RM 50.00
g. Cooper electrode = RM 110.00
h. Tooling = RM 200.00

Total = RM 2776.00

6.2.2 Mould Design Cost

Complete design and drawing work take 1 week of working hour. Skilled mould
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designer is cost RM 4000.00/month.

Calculation salary for 1 hour

1 day = 8 hours (Monday to Thursday)

(Friday 6.5 hour)

1 week = 5 working days

= (8 hours X 4 day) + 6.5 hours for Friday
= 38.5 hours

1 year = 38.5 hours X 52 week

= 2002 hours

1 hour = RM 4000.00 X 12 month

2002 hours
= RM 23.97/hours

Mould design Cost = RM 23.97 X 38.5 hours (1 week)

= RM 922.85

6.2.3 CAD/CAM Engineer

Completed prepare machining process and generated programme to cut
electrode at CNC Milling using Computer Aided Design/Computer Aided
Manufacturing (CAD/CAM). Take 1 hours. Skilled engineer of CAD/CAM is cost
RM 4000.00/month .

= RM 4000.00 X 12 month
2002 hours

= RM 23.97/hours

6.2.4 Cost of Machine Rental.

Machine rental for 1 hour = Machine price
10years (Jangka hayat mesin)
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1 year = 2002 working hour

a. CNC Milling (4 hours)
= RM 440,000.00
2002 hours X 10 year
= RM 440,000.00
20,020 hours

= RM 21.98/hours

= RM 21.98 X 4 hours

= RM 87.92

b. CNC EDM (20 hours)

= RM 780,000.00
20,020 hours
= RM 38.96/hours
= RM 38.96 X 20 hours
= RM 779.20

c. Conventional milling machine (24 hours)

= RM 83,500.00
20,020 hours.
= RM 4.17/hours
= RM 4.17 X 24 hours
= RM 100.08

Cost Machine Rental = RM 87.92 + RM 779.20 + RM 100.08

= RM 967.20

6.2.5 Labour Cost.

The costing is based to wages rate of RM 2500.00/month for the

skill operator of CNC Machine and RM 1500.00/month for skilled operator of
conventional machine.
a. CNC Milling (4 hours X RM14.98) = RM 59.92
RM 2500 X 12 month
2002 hours
RM 14.98/hours
b. CNC EDM (20 hours X RM14.98) = RM 299.60
c. Conventional Machine (24 hours X RM 8.99) = RM 215.76
d. Polishing (16 hours X RM 8.99) = RM 143.84
Total = RM 719.12

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6.2.6 Injection Process (Testing).

Two times of testing at 5 hours each.

Machine rental = RM 800,000.00

2002 hours X 10 years

= RM 39.96/hours

Injection moulding operator (RM600/month)

= RM 600 X 12 month
2002 hours
= RM 3.60/hour

a. Injection moulding machine (RM39.96 X 10 hours) = RM 399.60

b. Injection moulding operator ( RM 3.60 X 10 hours) = RM 36.00
c. Material 10 hours usage of testing = RM 100.00

Total = RM 535.60

6.2.7 Mould Manufacturing Cost

= Standard parts + Mould designer + CAD/CAM engineer +

machine rental + labour cost + Injection process

= RM 2776.00 + RM 922.85 + RM 23.97 + RM 967.2 +

RM 719.12 + RM 535.60

= RM 5,944.74

6.2.8 Overhead Cost (10% ~ 20%)

Overhead cost is taken as 20% of the overall cost to produced the completed

= 20% X RM 5,944.74

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= RM 1,189.00

6.2.9 Profit (20% ~ 30%)

About 30% of the total mould manufacturing cost

= 30% X RM5,944.74

= RM 1,783.40

6.2.10 Mould Price :

= Mould manufacturing cost + Overhead cost + Profit margin

= RM 5944.74 + RM 1189.00 + RM 1783.40

= RM 8,917.14

We sale this mould to another company for injection process to produce the product.

6.3 Calculation No. of Product

Calculation for number of product is considered as at the plastic injection

side. The number of product can be produced is referring to the life of the mould,
which is expected life of one years.

6.3.1 Total product can be produced

Cycle time = 30 second (2 product)

Therefore; 1 minute = 4 pcs.

1 hour = 4 pcs x 60 minute

= 240 pcs

1 year = 240 pcs X 2002 (working hours for 1 year)

= 480,480 pcs
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6.4 Estimation of product price

6.4.1 Cost of plastic material

2 product weight = 8.7 gram (include sprue and runner)

1 product weight = 4.35 gram

Material cost = RM 5.32/kg (Based on PP material)

Material cost/product = RM 5.32 x 0.00435kg

= RM 0.023

Cost to produced 480,480 pcs = RM 0.023 x 480,480 pcs

= RM 11,051.00

6.4.2 Injection Machine Renting (RM39.96/hour);

Cost of renting machine (1 year)

= RM 39.96 x 2002 hours (working for 1 year)

= RM 79,999.92

6.4.3 Machine Operator (RM 600/month)

= RM 600.00 x 12 month

= RM 7200.00

6.4.4 Mould Cost

Mould price = RM 8,917.14

Profit margin = RM 8,917.14 X 20% (profit)

= RM 1,794.00

Mould maintenance = RM 1000.00

(1 year)
= RM 11,711.40

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Therefore, total product cost :

= Plastic cost + Injection machine renting

+ machine operator + mould cost

= RM 11,051.00 + RM 79,999.20 +

RM 7,200.00 + RM 11,711.40

= RM 109,961.60

Cost/product = RM 109,961.60
480,480 pcs (include 5% product reject)

= RM 0.23/pcs

6.4.5 Product Price

If profit margin is 50%, then the price of the product :

= RM 0.23 x 50%

= RM 0.115

Price of the product = RM 0.23 + RM 0.115

= RM 0.345

= RM 0.40/pcs

6.5 Profit to produce the product

Product can be produce for 1 year = 480,480 pcs

Rejected product 5%

Therefore in one year ; number rejected product:

= 480,480 pcs x 5%

= 24,024 pcs

So, good product in one year :

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= 480,480 pcs - 24,024 pcs

= 456,456 pcs

Product sale 1 year = RM 0.40 X 456,456 pcs

= RM 182,582.40

Profit for 1 year = Product sale 1 year - total product cost

= RM 182,582.40 - RM 109,961.60

= RM 72,620.80/year

Profit for 1 month = RM72,620.80

12 month

= RM 6,051.73/month

The price shown above is referring to the price at factory. This costing is based on one
year life of mould. The price of product will be cheaper if the expected life of mould is








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