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What are the steps to figuring the direct cost for body materials (electricity only) ? I know I would start by doing something like this:
What are the steps to figuring the direct cost for body materials (electricity only)?
I know I would start by doing something like this: projected electricity cost x sales volume x electricity used per car (in this scenario is 160,000 kWh). But, my numbers seem to far off.
| Projected Net Income | ||||||
| Year 2024 | Year 2025 | Year 2026 | Year 2027 | Year 2028 | ||
| Sales Volume | 5,000 | 7,000 | 6,000 | 4,000 | 3,000 | |
| Projected electricity cost (per kWh) | $10.40 | $10.52 | $10.59 | $10.59 | $10.60 | |
| Revenues | $400.0 Mil | $560.0 Mil | $480.0 Mil | $320.0 Mil | $240.0 Mil | |
| Direct Costs | ||||||
| Body materials (electricity only) | ||||||
| Body materials (other than electricity) | $14.0 Mil | $19.6 Mil | $16.8 Mil | $11.2 Mil | $8.4 Mil | |
| Engine | $20.0 Mil | $28.0 Mil | $24.0 Mil | $16.0 Mil | $12.0 Mil | |
| Drivetrain | $30.0 Mil | $42.0 Mil | $36.0 Mil | $24.0 Mil | $18.0 Mil | |
| Battery Pack | $75.0 Mil | $105.0 Mil | $90.0 Mil | $60.0 Mil | $45.0 Mil | |
| Electronics | $25.0 Mil | $35.0 Mil | $30.0 Mil | $20.0 Mil | $15.0 Mil | |
| Total Direct Costs | $164.0 Mil | $229.6 Mil | $196.8 Mil | $131.2 Mil | $98.4 Mil | |
| Fixed Costs | ||||||
| Labor | $40.0 Mil | $40.0 Mil | $40.0 Mil | $40.0 Mil | $40.0 Mil | |
| Overheads | $20.0 Mil | $20.0 Mil | $20.0 Mil | $20.0 Mil | $20.0 Mil | |
| Depreciation | $82.5 Mil | $112.5 Mil | $37.5 Mil | $17.5 Mil | $.0 Mil | |
| EBIT | $93.5 Mil | $157.9 Mil | $185.7 Mil | $111.3 Mil | $81.6 Mil |
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