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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