- IoT empanada machine CM05i
- Semi-automatic empanada machine CM05S
- Empanadas and arepas machine CM06
- Wheat empanada machine CM07
- Multifunctional empanadas and arepas machine CM06B
- Mixed empanadas and arepas machine CM08
Empanada factory production costs
The cost of production is related to those expenses incurred for the generation of products such as empanadas.
It usually includes raw materials, labor and indirect manufacturing costs.
If the production costs turn out to be very high, this affects the final price of the empanadas and the profitability of the company, since every baker wants to recover the amount spent and receive profits.
ELEMENTS OF THE PRODUCTION COST OF EMPANADAS
As we have mentioned, there are three key elements in the cost of
production. Below, we explain each of them:
- 1. One is the raw material: They are those materials that are transformed in the production process. Example: Corn, flour, starches, potatoes, meat, rice, onion and salt in the empanada.
- 2. The second, as important as the first, is the labor: In this case, only direct labor is included, that is, that involved in the production process. For example, employees who work in production plants such as: Assemblers, fryers and support personnel for preparing stews. According to studies carried out by our company MAQUIEMPANADAS, it has been identified that for every 1000 empanadas, only one operator is required if the technology is available.(Conoce la máquina CM08)
- 3. The third is the others indirect production costs: Here we include indirect labor, which is that which, although not involved in the process, is necessary. For example, administration department personnel, messengers, among others. Expenses such as rent or taxes must also be added.
EXAMPLES OF PRODUCTION COSTS
Suppose we manage an empanada factory that produces 2,500 empanada units every day, which are packaged and put on the market, where they are consumed by an audience of young people. What would our operating costs be?
Production Costs
- Raw material: The price of corn, wheat flour, potatoes, rice, meat, chicken, which fluctuate in the market according to their supply and demand.
- Labour: The workers who operate the different machines to make the empanadas in their different positions and hierarchies, including workers and supervisors.
Indirect Manufacturing Costs:
- Services: In the process, gas, water, and electricity are consumed and another company is hired to manufacture the packaging for the empanadas, made of paper printed with motifs.
- Staff: In charge of offices, addresses, billing and accounting processes.
- Rentals: Both the place where we have located our factory, and the equipment that is not our property.
- Marketing: We will pay for advertisements for our empanadas in newspapers, television, radio or social networks to promote them and for the public to search for them.