3 ms·

also we need to account for the labour and cost that's gone into the production automation equipment .

• imtringued 6y ago
  Labor and cost are exactly the same thing. If something is expensive it means it took lots of people's time to work on it. If you produce a pencil for 5 cents then you may spend 3 cents on materials and 2 cents on manufacturing equipment. The cost of the materials represent the wages of the people who extracted the graphite and harvested the wood. The cost of the manufacturing equipment represents the wages of the people who built it.
  • littlestymaar 6y ago
    Labor and cost are almost the same thing: cost is labor costs + capital costs (how much the woodland owner and the factory shareholders are making). Usually the labor cost represents most of the cost, but not always (for regular oil, it's not the case). You could also add taxes and other government-related costs, but since most governments run on a deficit, it would account as a negative cost overall.
• CydeWeys 6y ago
  That's already accounted for in the price of a pencil. They're not being sold for a loss.