The raw material price and consumable price

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Within the last month, the raw material price and consumable price combined has increased by 5.5%. If the throughput was 5 parts/hour estimates the future throughput that has to take place in order to maintain a constant production cost. Consider the yield of this production is 90%. It is known that materials contained in each product weigh 2.5kg, materials (including consumables) cost is $100/kg, All equipment cost is $750,000 to be written off in 5 years with an average machine utilization of 45% over 24 hr/day, tooling cost is $200, the overhead rate (including labor) is $250/hr, energy cost is $25/hr, space and administration cost is $120/hr, and information (R&D, royalties, licenses) is $35/hr.

Reference no: EM13708156

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