What is the proportion of material cost to total production cost for custom tin lunch boxes?
The total production cost equal the sum of direct materials costs, direct labor costs, and manufacturing overhead costs. In the production process of custom tin lunch boxes, the direct materials cost is one of the few variable parts. For some mature and well-developed producers, they focus on developing or importing high-end technology to reduce the materials waste as much as possible, therefore enhancing the utilization ratio of raw materials. This, in turn, can reduce the investment in the raw materials while ensuring the quality.
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