Analysis Of Rosin Cost

  Generally, roisn cost include the following factors
1. Cost of  rosin raw material (turpentine). Regards as C1, it has direct relation with raw material collection price, regards as P1. Generally, one tons rosin will consume 1.28 tons rosin raw materil (turpentine), so C1=1.28P1
2. Cost of other raw material, regards as C2, it include coal consumption (use as fuel), 90RMB/ton; electricand water expentiture, 10RMB/ton, oxalic acid consumption, 10RMB/ton; laborage, 30RMB/ton; package, 240RMB (galvanization iron drum). So C2=90+10+10+30+240=380RMB/ton.
3. Tax payment, regards as C3, it is 170RMB/ton. So C3=170RMB/ton.
4. Rosin factory equipment depreciation, regards as C4, it is about 20RMB/ton (annual output 5000 tons). So C4=20RMB/ton.
5. Overhead expenses (wage expenditure for four managers and operation expenditure per year), regards as C5, it is about 20RMB/ton. So C5=20RMB/ton.
     Finally, the byproduct of rosin, turpentine oil, regards as B1, 0.12 ton turpentine oil was produced when one ton rosin was produced.
     According to the analysis mentioned above, rosin cost, regards as C, is as follow,
C=C1+C2+C3+C4+C5-B1