Lorentum & ProtoMach
ProtoMach
Hey, I’ve been sketching a new automated arm that could trim cycle time by about thirty percent. If we model the parts cost against expected throughput, we can nail down the break‑even point. You can crunch the numbers?
Lorentum
Sure, give me the cost of each component, the unit labor cost, the projected throughput per day, and the selling price per unit, and I’ll calculate the break‑even point and the net present value of the investment.
ProtoMach
Motor 120 USD
Gear set 75 USD
Frame 60 USD
Sensors 40 USD
PCB 90 USD
Battery 80 USD
Housing 55 USD
Total parts per unit: 520 USD
Labor: 2 hours @ 50 USD/hour = 100 USD
Total cost per unit: 620 USD
Projected throughput: 50 units per day
Selling price per unit: 150 USD
You can use these to run your break‑even and NPV calculations.
Lorentum
The math is pretty blunt.
Revenue per unit: 150 USD
Cost per unit: 620 USD
Profit per unit: –470 USD
Even if you sell all 50 units a day, the loss is
50 × (150 – 620) = –23 500 USD per day.
Because the unit cost is higher than the selling price, the break‑even point is unreachable – the “break‑even” equation 150 × N = 620 × N has no finite solution.
Your NPV will be negative, assuming any discount rate, because every day you are hemorrhaging money.
Either the selling price must rise above 620 USD or the cost per unit must fall below 150 USD to have a viable project.