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Business
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| Number of pages / Number of words: |
6 / 1566 |
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Total cost per pad would be $148.12 using current equipment or $69.18 with the purchase of $50,000 permanent tooling equipment. CMI seeks for a 40-50% margin allowing for a price of $269.31 or $125.78 respectively (Exhibit 4).
Break-Even Volume
With a margin of $121.19 for existing equipment the break-even volume would be 214 units per month...
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For the permanent tooling equipment the margin is $56.60 which has a break-even volume of 185 units per month (Exhibit 4). Both break-even volume numbers are within CMI manufacturing capabilities. To increase CMI unit production capability equipment at a cost of $75,000 per 250 units could be purchased...
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