Calculating Cost Per Pound Per Minute

[Alex_Hayden]

My math and formula is a smidgen rusty (and by that, I mean quite a bit) and I can't quite seem to wrap my head around something my boss is asking me to do. He wants me to generate a formula to calculate cost per pound per minute for two seperate machines that are processing meat. I have the base utility costs to run said machines, and a general amount of poundage to generate a price for (ranging between 500 and 2000). With the information below, is there any way possible to calculate the inherent overall cost without knowing the per pound cost of meat, or am I missing something?

 

[shg]

The price of meat doesn't matter, but knowing the dependence of resource usage (kWHr, therms, & gallons) on the production rate is essential. If it appears in your example, it's not obvious to me.

Reckon it's possible that the resource cost per hour is fixed, and the more product you run through the machines (up to the capacity of each), the lower cost per pound processed. In that case, just divide the total cost per hour by the production rate (pounds per hour) to get the cost per pound.

 

[mole999]

to do it by minute. you need to know how much per hour, then its divide by 60, if you do an eight hour day then divide by 8 then by 60. does that start you

 

[Alex_Hayden]

So, I'm not crazy here, and to calculate overall total cost I would indeed need price per pound? He keeps telling me to just solve it, and rationalizing it in my head it's like someone if asking me to solve x+y=z without giving me y or z.
Thanks, I'll talk to him about it.

 

[shg]

Assuming fixed operating cost,

[Table="width:, class:grid"][tr][td]Row\Col[/td][td]

A​

[/td][td]

B​

[/td][td]

C​

[/td][td]

D​

[/td][td]

E​

[/td][td]

F​

[/td][td]

G​

[/td][/tr][tr][td]

1​

[/td][td]

Item​

[/td][td]

CharMarker​

[/td][td]

Infrabaker​

[/td][td]

Total​

[/td][td]

Unit Cost​

[/td][td]

Total Cost​

[/td][td][/td][/tr]
[tr][td]

2​

[/td][td]kW[/td][td]

16​

[/td][td]

220​

[/td][td]

236​

[/td][td]

$ 0.10 ​

[/td][td]

$ 23.60 ​

[/td][td][/td][/tr]
[tr][td]

3​

[/td][td]Therm[/td][td]

12​

[/td][td]

0​

[/td][td]

12​

[/td][td]

$ 1.02 ​

[/td][td]

$ 12.24 ​

[/td][td][/td][/tr]
[tr][td]

4​

[/td][td]Gallons[/td][td]

300​

[/td][td]

45.13​

[/td][td]

345.13​

[/td][td]

$ 0.71 ​

[/td][td]

$ 245.04 ​

[/td][td][/td][/tr]
[tr][td]

5​

[/td][td][/td][td][/td][td][/td][td][/td][td][/td][td]

$ 280.88 ​

[/td][td][/td][/tr]
[tr][td]

6​

[/td][td][/td][td][/td][td][/td][td][/td][td][/td][td][/td][td][/td][/tr]
[tr][td]

7​

[/td][td][/td][td][/td][td][/td][td][/td][td]

bl/Hr​

[/td][td]

$/lb​

[/td][td][/td][/tr]
[tr][td]

8​

[/td][td][/td][td][/td][td][/td][td][/td][td]

500​

[/td][td]

$ 0.56 ​

[/td][td]F8: =F$5/E8[/td][/tr]
[tr][td]

9​

[/td][td][/td][td][/td][td][/td][td][/td][td]

600​

[/td][td]

$ 0.47 ​

[/td][td][/td][/tr]
[tr][td]

10​

[/td][td][/td][td][/td][td][/td][td][/td][td]

700​

[/td][td]

$ 0.40 ​

[/td][td][/td][/tr]
[tr][td]

11​

[/td][td][/td][td][/td][td][/td][td][/td][td]

800​

[/td][td]

$ 0.35 ​

[/td][td][/td][/tr]
[tr][td]

12​

[/td][td][/td][td][/td][td][/td][td][/td][td]

900​

[/td][td]

$ 0.31 ​

[/td][td][/td][/tr]
[tr][td]

13​

[/td][td][/td][td][/td][td][/td][td][/td][td]

1000​

[/td][td]

$ 0.28 ​

[/td][td][/td][/tr]
[tr][td]

14​

[/td][td][/td][td][/td][td][/td][td][/td][td]

1100​

[/td][td]

$ 0.26 ​

[/td][td][/td][/tr]
[tr][td]

15​

[/td][td][/td][td][/td][td][/td][td][/td][td]

1200​

[/td][td]

$ 0.23 ​

[/td][td][/td][/tr]
[tr][td]

16​

[/td][td][/td][td][/td][td][/td][td][/td][td]

1300​

[/td][td]

$ 0.22 ​

[/td][td][/td][/tr]
[tr][td]

17​

[/td][td][/td][td][/td][td][/td][td][/td][td]

1400​

[/td][td]

$ 0.20 ​

[/td][td][/td][/tr]
[tr][td]

18​

[/td][td][/td][td][/td][td][/td][td][/td][td]

1500​

[/td][td]

$ 0.19 ​

[/td][td][/td][/tr]
[tr][td]

19​

[/td][td][/td][td][/td][td][/td][td][/td][td]

1600​

[/td][td]

$ 0.18 ​

[/td][td][/td][/tr]
[tr][td]

20​

[/td][td][/td][td][/td][td][/td][td][/td][td]

1700​

[/td][td]

$ 0.17 ​

[/td][td][/td][/tr]
[tr][td]

21​

[/td][td][/td][td][/td][td][/td][td][/td][td]

1800​

[/td][td]

$ 0.16 ​

[/td][td][/td][/tr]
[tr][td]

22​

[/td][td][/td][td][/td][td][/td][td][/td][td]

1900​

[/td][td]

$ 0.15 ​

[/td][td][/td][/tr]
[tr][td]

23​

[/td][td][/td][td][/td][td][/td][td][/td][td]

2000​

[/td][td]

$ 0.14 ​

[/td][td][/td][/tr]
[/table]

 

[Alex_Hayden]

After further rereading (and getting it through my thick skull that for a variable amount like the poundage the price doesnt matter), Ive come to a little bit of a better understanding. So, to clarify, the fixed rate per hour based purely on utility costs is 280.88. With that in mind, generating a price per pound would be as simple as dividing that cost by the variable poundage? I'm just confused as to how you are generating one cost from another, and thats where my mental block is coming from here.

 

[shg]

You calculated the total cost of operating the two machines for an hour. Divide that by the pounds processed per hour to get the cost per pound, as shown in my last post.

The cost per pound for processing desn't matter whether you're processing chicken or lobster.