Waaaaiiiit... the 16-35 takes 24 hours to make and costs $2000. If production cost is $1500 and if materials are a third of the cost, that leaves $42/hr for the workers and machinery. suddenly that lens looks dirt cheap.
It might take 24 hours to make the 16-35, but it doesn't mean they produce just one per day. Each machine in the production line produces parts continuously. So it takes one lens 24 hours to proceed from the beginning of the line to the end, but at the same time there are many other lenses produced.
Lol! Of course they're making more than one lens at a time! I made zero reference to that. I was referring to the lens as a unit, not the factory.
There was a hidden reference - "that leaves $42/hr for the workers and machinery". Because hour rate per unit on a production line producing many units at the same time makes no sense. So I thought you got it wrong .
Yeeeaaa... that wasn't very clear. That leaves $42/hr for the workers and machinery for that lens
. it wouldn't make sense to analyze the whole plant that way. But it really does give a monetary value of sorts on the individual product as a unit. Not in the sense that this is what it costs, but in the sense that If they're not making one, they're making another. Thus they will assumably be expecting a similar $/hr/unit on whatever other lenses they make on the same line. It means they're charging the client $42/hr on there product, irregardless of their end revenu or how many units they produce.
I really shouldn't be on line when I'm tired... i'm no good at communicating even when I'm awake....