[Stoves] Cost of stoves

David G. LeVine dlevine at speakeasy.net
Thu Nov 8 22:16:26 CST 2012


I notices a post here, where a facility employing 6-10 people coulf 
produce 500 stoves per month.  This means that each person can produce 
50-80 stoves per month.  Assuming a 40 hour work week (which may be too 
low), that means 170 hours per month or 2-3.5 hours per stove.  Assuming 
normal G&A expense, (things like cost of the building and tools) and 
some component cost for the stove (sheet metal costs money), would the 
stove not cost over 2-3.5 hours of a worker's time?  What does this say 
about the cost of a stove?

If a stove must sell for $X, does this imply the worker's income must be 
well below $X/2 per hour since there are G&A and material costs involved?

If my analysis is incorrect, please tell me how the business can survive 
with less income than expenses.  Can the worker survive with less income 
than it costs him to survive?

Dave  8{)
-- 

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