Current Hi-Tech Broker
Production Current Production = Sales Forecast
Mid-Grade 2,532.00 3,798.00 3,798.00 Production can be increased by 50% and the broker also anticipates that same level
High-End 506.00 759.00 759.00 Production can be increased by 50%
Direct Materials ($)/Unit
Mid-Grade 140.00 140.00 There are no material costs for brokered units
High-End 250.00 250.00 250.00
Direct Labor ($/HR)/Unit 15.00 40.00 40.00 The labor rate is increased due to the technical skill level of operators
Labor Time (Hrs)/Unit
Mid-Grade 20.00 4.00 There are no labor times for brokered units and production times are 20% of original times
High-End 30.00 4.00 4.00 Production times are now equal to the mid-grade level
Direct Cost/Unit
Mid-Grade 440.00 300.00 360.00 The Broker cost for Mid-Grade is based on net FOB destination including shipping/tariffs
High-End 700.00 410.00 410.00
Price/Unit
Mid-Grade 509.00 459.00 459.00 Prices are reduced by 10% because supply is increased
High-End 879.00 789.00 789.00 Prices are reduced by 10% because supply is increased