The Economics Of Ink-jet Addressing

For example, assume the same for two new ink-jet printers from competing suppliers, one slightly faster than the other. Labor cost is $15 per hour per person (though using actual numbers will show the same benefit). If charging $20 per 1,000, once the slower machine is exceeded by 1,000 pph, revenue has increased by $20 (or, 1,000 pieces more per hour at $20 per 1,000). Additional labor cost only went up $15; therefore, the gain is $5 per hour. If speed has increased by 6,000 (34,000 pph vs. 28,000 pph) using three people, then revenue has increased $120 and labor has one increased $15. Therefore, $105 each hour has been gained.