Labor is a pretty major portion of the cost of items that are labor intensive to manufacture.
Taxes (property and payroll) are a pretty high part of the cost of the “overhead” included in that 27%. Energy costs are also a major overhead factor too.
In the UMC (Unified Manufacturing Cost) which breaks out the the labor hours at every value-add step, will give a more accurate detail about the true cost.
I suspect that the percentage of labor including overhead and taxes is higher than 27%. I would say it’s closer to 36%
Besides clothing, name one thing that is massed produced and labor is greater than 20-30%? POST DATA.
Post data.