How to calculate the production price?

Guest · Post by **Guest** » 27.09.2009, 11:35

Hi all,

As I'm getting more and more experienced here, I'm trying to produce more complex products. At the moment, I focus on cars production.

My question is: how may I calculate the real price it costs to produce a car?

Do I have to add each unit price (steel, power, oil,...) + production costs?
Can I use each unit price that is indicated in my warehouse?

For example, I just produced some tires... and when I take a look at the price in my warehouse... 483.42c!!

What's wrong then? What's the correct price?

Thanks for your help!

Guest · Post by **Guest** » 27.09.2009, 11:40

Value all your produced sub products at market value and use the warehouse price for sub products you have bought.

That will give a true value of your production cost.

Guest · Post by **Guest** » 27.09.2009, 11:44

Ok but what I don't understand is why the price of the tires I produced are that high (triple than market's lower price).

And may I consider that the final price indicated in the warehouse is the global price which take into account all the costs of the sub products needed for it?

Guest · Post by **Guest** » 27.09.2009, 11:57

Without knowing what you are producing and buying I would say your true production cost would be nearer 550 caps

Steel = 3*135
power = 800*.15
Rubber about 35 caps

And may I consider that the final price indicated in the warehouse is the global price which take into account all the costs of the sub products needed for it?

Yes but don't forget the warehouse price only tells you what it cost to produce not what it is worth. for example if you produce your own power then the warehouse price will be .01 or .03 depending on where your power plant is. the actual value of the power is more like .15

Guest · Post by **Guest** » 27.09.2009, 12:00

Ok so I have to consider that the price at warehouse is the one that gathers each sub ones (whether I bought or produced them)?

Guest · Post by **Guest** » 27.09.2009, 12:07

ARushOfBlood wrote:Ok so I have to consider that the price at warehouse is the one that gathers each sub ones (whether I bought or produced them)?

Correct.

Guest · Post by **Guest** » 27.09.2009, 12:08

Ok thanks very much podge

Guest · Post by **Guest** » 27.09.2009, 14:38

podge wrote:Without knowing what you are producing and buying I would say your true production cost would be nearer 550 caps

Steel = 3*135
power = 800*.15
Rubber about 35 caps

And may I consider that the final price indicated in the warehouse is the global price which take into account all the costs of the sub products needed for it?

Yes but don't forget the warehouse price only tells you what it cost to produce not what it is worth. for example if you produce your own power then the warehouse price will be .01 or .03 depending on where your power plant is. the actual value of the power is more like .15

A couple of months ago I would not have believed I would ever "hear" you say that, but you said it!

I think that's great!