Cost of Production given Profit Rate Calculator

✖Amount Received for Each Component is the amount of money the machine shop receives for machining each component.ⓘ Amount Received For Each Component [S]			+10% -10%
✖Maximum Profit Rate is the efficiency rate of the product obtained in metal cutting.ⓘ Maximum Profit Rate [MPR]			+10% -10%
✖Average Production Time is the time taken to produce a single component out of a lot of produced batches.ⓘ Average Production Time [t_p]			+10% -10%

✖Production Cost of Each Component is the total amount that it takes to produce a single component from scratch.ⓘ Cost of Production given Profit Rate [C_pr]

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Formula

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Cost of Production given Profit Rate

Formula

`"C"_{"pr"} = "S"-("MPR"*"t"_{"p"})`

Example

`"15000"="20000"-("8.25082"*"10.1min")`

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Cost of Production given Profit Rate Solution

STEP 0: Pre-Calculation Summary

Formula Used

Production Cost of Each Component = Amount Received For Each Component-(Maximum Profit Rate*Average Production Time)
C_pr = S-(MPR*t_p)
This formula uses 4 Variables

Variables Used

Production Cost of Each Component - Production Cost of Each Component is the total amount that it takes to produce a single component from scratch.
Amount Received For Each Component - Amount Received for Each Component is the amount of money the machine shop receives for machining each component.
Maximum Profit Rate - Maximum Profit Rate is the efficiency rate of the product obtained in metal cutting.
Average Production Time - (Measured in Second) - Average Production Time is the time taken to produce a single component out of a lot of produced batches.

STEP 1: Convert Input(s) to Base Unit

Amount Received For Each Component: 20000 --> No Conversion Required
Maximum Profit Rate: 8.25082 --> No Conversion Required
Average Production Time: 10.1 Minute --> 606 Second (Check conversion here)

STEP 2: Evaluate Formula

Substituting Input Values in Formula

C_pr = S-(MPR*t_p) --> 20000-(8.25082*606)

Evaluating ... ...

C_pr = 15000.00308

STEP 3: Convert Result to Output's Unit

15000.00308 --> No Conversion Required

FINAL ANSWER

15000.00308 ≈ 15000 <-- Production Cost of Each Component

(Calculation completed in 00.004 seconds)

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Credits

Created by Kumar Siddhant

Indian Institute of Information Technology, Design and Manufacturing (IIITDM), Jabalpur

Kumar Siddhant has created this Calculator and 400+ more calculators!

Verified by Parul Keshav

National Institute of Technology (NIT), Srinagar

Parul Keshav has verified this Calculator and 400+ more calculators!

< 10+ Maximum Efficiency Calculators

Amount Received by Machine Shop given Profit Rate

Go Amount Received For Each Component = (Maximum Profit Rate*Average Production Time)+Production Cost of Each Component

Production Time per component given Profit Rate

Go Average Production Time = (Amount Received For Each Component-Production Cost of Each Component)/Maximum Profit Rate

Cost of Production given Profit Rate

Go Production Cost of Each Component = Amount Received For Each Component-(Maximum Profit Rate*Average Production Time)

Rate of Profit

Go Maximum Profit Rate = (Amount Received For Each Component-Production Cost of Each Component)/Average Production Time

Amount Received by Machine Shop given Profit per Component

Go Amount Received For Each Component = Profit Per Component+Production Cost of Each Component

Cost of Production given Profit per Component

Go Production Cost of Each Component = Amount Received For Each Component-Profit Per Component

Profit per component produced

Go Profit Per Component = Amount Received For Each Component-Production Cost of Each Component

Profit per Component produced given Profit Rate

Go Profit Per Component = Average Production Time*Maximum Profit Rate

Production Time per component given Profit

Go Average Production Time = Profit Per Component/Maximum Profit Rate

Rate of Profit given Profit Per component

Go Maximum Profit Rate = Profit Per Component/Average Production Time

Cost of Production given Profit Rate Formula

Production Cost of Each Component = Amount Received For Each Component-(Maximum Profit Rate*Average Production Time)
C_pr = S-(MPR*t_p)

Average Production Cost of each component

The Average Production Cost of each component is usually determined by taking an average over a defined batch of products. The reason for this is the extended costs such as the cost of tools and operating costs etc. This makes the Average Production Cost becomes quite higher for a single product than when measured over batch size.

How to Calculate Cost of Production given Profit Rate?

Cost of Production given Profit Rate calculator uses Production Cost of Each Component = Amount Received For Each Component-(Maximum Profit Rate*Average Production Time) to calculate the Production Cost of Each Component, The Cost of Production given Profit Rate is a method to determine the production cost of a single component based on the profit the machine shop makes on it. Production Cost of Each Component is denoted by C_pr symbol.

How to calculate Cost of Production given Profit Rate using this online calculator? To use this online calculator for Cost of Production given Profit Rate, enter Amount Received For Each Component (S), Maximum Profit Rate (MPR) & Average Production Time (t_p) and hit the calculate button. Here is how the Cost of Production given Profit Rate calculation can be explained with given input values -> 17212.4 = 20000-(8.25082*606).

FAQ

What is Cost of Production given Profit Rate?

The Cost of Production given Profit Rate is a method to determine the production cost of a single component based on the profit the machine shop makes on it and is represented as C_pr = S-(MPR*t_p) or Production Cost of Each Component = Amount Received For Each Component-(Maximum Profit Rate*Average Production Time). Amount Received for Each Component is the amount of money the machine shop receives for machining each component, Maximum Profit Rate is the efficiency rate of the product obtained in metal cutting & Average Production Time is the time taken to produce a single component out of a lot of produced batches.

How to calculate Cost of Production given Profit Rate?

The Cost of Production given Profit Rate is a method to determine the production cost of a single component based on the profit the machine shop makes on it is calculated using Production Cost of Each Component = Amount Received For Each Component-(Maximum Profit Rate*Average Production Time). To calculate Cost of Production given Profit Rate, you need Amount Received For Each Component (S), Maximum Profit Rate (MPR) & Average Production Time (t_p). With our tool, you need to enter the respective value for Amount Received For Each Component, Maximum Profit Rate & Average Production Time and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

How many ways are there to calculate Production Cost of Each Component?

In this formula, Production Cost of Each Component uses Amount Received For Each Component, Maximum Profit Rate & Average Production Time. We can use 1 other way(s) to calculate the same, which is/are as follows -

Production Cost of Each Component = Amount Received For Each Component-Profit Per Component

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