Cost Estimates

The large number of variables and their fluctuation make it exceedingly difficult to accurately estimate price, markups, and cost factors short of actual manufacture and distribution.

Manufacturers, in determining their prices, also consider such factors as fixed costs associated with plant, equipment, and tooling; factors such as the costs of raw materials, labor, packaging, and overhead; and marketing variables such as the costs of shipping and handling, sales expenses, warranty and return factors, loss factors, geographic and demographic locations, etc.

Added production costs should be minimal and could be easily recovered through increased sales.

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