Automobile Assembly - Operational Costs
OPERATIONAL COSTS
Labour costs for the assembly will run about $2,000 per vehicle. The average time required to assemble a Cobra kit, for example, is between 150 and 200 hours. With building operations costs and salary overhead of $71,548 per year (shown below), every vehicle will have an assembly cost of $8,943.50 in the first year with eight vehicles sold. This will drop to approximately $6,060.33 in the second year. This is with 16 vehicles sold and a five percent inflation rate taken into consideration.
| Cost Breakdown (1st year) | ||
| Description | Per Month | Per Year |
| Rent for shop | $750.00 | $9,000.00 |
| Utilities (hydro, phone) | 500.00 | 6,000.00 |
| Advertising | 967.00 | 11,604.00 |
| Insurance | 240.00 | ...|
[The entire page is 364 words long]
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