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    Learning Journal Unit 7 (BUS 3301 LJ WK 7)

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    Inn Gyin Khine
    The document discusses the components of unit costs for Royal Manufacturing Co., Ltd., including raw material costs, packaging costs, labor expenses, and overhead costs. It explains how each of these factors contributes to the overall unit costs and how efficiently managing these costs is important for the company's profitability and competitiveness.

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    Learning Journal Unit 7 (BUS 3301 LJ WK 7)

    Uploaded by

    Inn Gyin Khine
    10 views3 pages
    The document discusses the components of unit costs for Royal Manufacturing Co., Ltd., including raw material costs, packaging costs, labor expenses, and overhead costs. It explains how each of these factors contributes to the overall unit costs and how efficiently managing these costs is important for the company's profitability and competitiveness.

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    Learning Journal Unit 7 (BUS 3301 LJ wk 7)

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    The document discusses the components of unit costs for Royal Manufacturing Co., Ltd., including raw material costs, packaging costs, labor expenses, and overhead costs. It explains how each of these factors contributes to the overall unit costs and how efficiently managing these costs is important for the company's profitability and competitiveness.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    10 views3 pages

    Learning Journal Unit 7 (BUS 3301 LJ WK 7)

    Uploaded by

    Inn Gyin Khine
    The document discusses the components of unit costs for Royal Manufacturing Co., Ltd., including raw material costs, packaging costs, labor expenses, and overhead costs. It explains how each of these factors contributes to the overall unit costs and how efficiently managing these costs is important for the company's profitability and competitiveness.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    1

    Within the framework of Royal Manufacturing Co., Ltd., the components of unit costs

    would comprise a range of aspects that are intrinsic to their operations of manufacture and

    distribution. First and foremost, the cost of raw materials would be a major factor. This

    includes the costs related to obtaining components like milk, fruit extracts, and flavorings for

    their wide range of products, which includes milk drinks, fruit juices, and soft drinks (Royal

    Manufacturing, n.d.). Depending on the state of the market, seasonal availability, and changes

    in commodity pricing, these expenses may change. Unit pricing would also include the cost

    of packaging materials, which would include labels, bottles, caps, and other packing

    essentials. The product line and marketing tactics used may have an impact on the packing

    materials' quality.

    Second, Royal Manufacturing Co., Ltd.'s unit costs would be heavily influenced by

    labor expenses. Pay for production-related factory workers as well as management and

    administrative personnel in charge of operations would fall under this category. Labor

    expenses could change based on things like experience level, laws governing labor, and perks

    offered to staff members. Furthermore, labor costs may be impacted by manufacturing

    process efficiency, and labor costs and productivity may be affected by training and

    technology expenditures.

    The last component of unit costs is overhead, which includes a variety of indirect

    expenditures related to maintaining the production plant and supporting activities. This might

    include rent or facility depreciation costs, utility costs, machinery maintenance costs, and

    administrative overhead including distribution, marketing, and regulatory compliance. For

    Royal Manufacturing Co., Ltd. to remain profitable and guarantee that quality requirements

    are fulfilled, they must efficiently manage overhead expenditures, which have a direct impact

    on the competitiveness of their products in the market. All things considered, Royal
    2

    Manufacturing Co., Ltd.'s success and sustainability in the fast-paced and cutthroat beverage

    sector depend on a thorough grasp of and control of these unit cost components.
    3

    References

    Royal Manufacturing. (n.d.). About us. Retrieved from.

    https://www.mfgroyal.com/about-us/

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