$4,000 600 552 EXHIBIT 2 Estimated Monthly Cost of Producing the ATM Component In-House 1. Direct labor 2. Indirect labor 3. Pension + welfare 4. Payroll taxes 460 5. Utilities 700 6. Material costs 400 7. Repairs & maintenance 700 8. Space 400 9. General factory 800 10. Depreciation 2,100 $10,712 $53.56 = 10,712/200 Unit Cost Description of the above items: 1. Two workers at $2,000 per month. 2. 15 percent of Item 1. Mainly the component's share of supervisory salaries. 3. 12 percent of Items 1 plus 2. This includes the firm's contribution to the employee's pension fund, plus health and disability insurance. 4. 10 percent of Items 1 plus 2. This is mainly for social security and unemployment insurance. 5. The component's share of electricity, heat, water, etc. 6. Parts and supplies directly related to the production of the ATM component. 7. Maintenance and repair on the equipment used by the two workers. 8. The component's share of the factory space occupied by the two workers. 9. The component's share of items like property taxes, corporate fees, secretarial support, etc. 10. Based on historical cost of the equipment.