Products T76

Operating Efficiency / Production Planning = 85%
(two models per day, produced by hand)

1 month = 30 Days
x 85% Operating efficiency

25 Days
x 2 Models Per Day

50 Models Per Month
x $3 Cost of Material For Each Model

$150 Material Cost

$45,650 = Price of T76
5 Years = 60 Months

$45,650 ÷ 60 Months = $760 per month

$760 Monthly Machine Cost
$150 Material To Produce 50 Models

$910 Operating Cost for Machine and Material per Month

$200 Typical Cost Each to Purchase Models
50 Models per Month

$10,000 Estimated Cost to Purchase 50 Models
- $910 Monthly Cost of T76 and Materials

$9,185 Monthly Savings using T76 to Make Models

$910 Monthly Cost for T76 ÷ 50 Models = $18 per Model

$45,650 Purchase Price of T76 ÷ $9,090 Monthly Savings = 5 Months

The T76 will pay for itself in 5 months producing only 2 models per day