Table 3. Total Product Cost (TPC) Assumptions.
| description | percentage |
|---|---|
| direct production | |
| raw materials | CRM |
| utilities | CUT |
| operating labor | COL |
| operating supplies | 0.5% of FCI |
| maintenance and repairs | 2% of FCI |
| fixed charges | |
| insurance | 0.4% of FCI |
| local taxes | 1% of FCI |
| plant overhead | 5% of TPC |
| cost of manufacturing (COM) | direct production + fixed charges + plant overhead |
| general expenses (GE) | |
| research and development | 5% of TPC |
| distribution and marketing | 2% of TPC |
| administrative | 2% of TPC |
| total product cost (TPC) | COM + GE |