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Prices of the cars
#5
(12-27-2015, 01:31 PM)Preliator Wrote: If I sell only one model I have to set the price 1 dollar higher than "Corporate and Unit Cost" to cover my total expense and have a real profit of my business.

Viceversa if I sell 2 or more models is easier because I don't have to set the price of each model higher than the "Corporate and Unit Cost".


It is as WolveNZ points out.

In 1.19 the names of these things have changed to hopefully make it clearer.

The unit costs are a fixed cost of materials of the vehicle. The Corporate costs are all other costs in running your business per vehicle produced.

So say your car's unit costs is $1000. And all other costs running the company is $1,000,000.

You build 1 car, then the Corporate and Unit Costs will be $1,001,000. You would need to sell your 1 car for $1,001,001 to make a profit.


Now lets say you build 1000 cars. The Unit Costs for that turn is still $1000, but the corporate costs per vehicle is $1,000,000 / 1000cars = $1000 per car.

So:
$1000 unit costs + $1000 corporate costs = $2000 per car.

You would need to sell all 1000 cars for $2001 to make a profit.

What if you only sold 500 cars?
You still spent $1,000,000 on corporate costs. But now you have to divide these numbers by 500. So
$1,000,000 / 500 = $2,000 corporate costs per vehicle + $1,000 unit costs = $3000 per vehicle sold to make a profit.

But wait! What if you built 1000 cars but only sold 500?

Simple. $1,000 unit costs * 1000 cars you produced = $1,000,000 + $1,000,000 corporate costs = $2,000,000 spent that turn

$2,000,000/500 number of cars sold = $4000 is your break even point for over production. (This is assuming you cover inventory cost now and not in the future sales, in which case the above $3000 would be valid as you will be selling the left overs for "free" the next turn.)




For a shorter answer, if you sell all the vehicles you produce, then the "Total Production Costs" are what you want to sell vehicles for. Double it for every half of vehicles you sell.
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Messages In This Thread
Prices of the cars - by clovisgr - 11-18-2015, 09:49 AM
RE: Prices of the cars - by Eric.B - 11-18-2015, 10:09 AM
RE: Prices of the cars - by Preliator - 12-27-2015, 01:31 PM
RE: Prices of the cars - by WolveNZ - 12-27-2015, 05:35 PM
RE: Prices of the cars - by Eric.B - 12-27-2015, 07:16 PM
RE: Prices of the cars - by jkemmery - 02-16-2016, 02:41 PM
RE: Prices of the cars - by Eric.B - 02-16-2016, 05:50 PM
RE: Prices of the cars - by jkemmery - 02-17-2016, 10:40 AM
RE: Prices of the cars - by Eric.B - 02-17-2016, 01:05 PM
RE: Prices of the cars - by jkemmery - 02-18-2016, 01:15 PM

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