Cost Analysis for Firms of Different Sizes

[Hans_Lemurson]

In my analysis of the running costs of my factories, I have discovered that since the "Real Wage Rate" for a city acts as an across-the-board multiplier for nearly all costs, and that overhead is a clean multiple of wages. Many old timers likely already knew this, but I feel it is useful to share. In addition, the Labor requirements for a firm's Units tend to double for each size class EXCEPT for in the Large size where Manufacturing, Crop, Livestock, and Processing units (and maybe some others) are proportionally cheaper.

Monthly cost = Labor * RealWageRate * $20
(At 75.00 RWR, 1 Labor costs $1,500/month or $18,000/year).

Small (2x2): Single Strength
Overhead: 25 Labor
Purchasing: 2 Labor
Manufacturing: 8 Labor
Sales: 4 Labor
Advertising: 1 Labor

Optimal 2-Input Factory: 71 Labor
(3 Purchase, 4 Manfct, 2 Sales)
Basic Store: 50 Labor
(4 Purchase, 4 Sales, 1 Ad)

Medium (3x3): Double Strength
Overhead: 50 Labor
Purchasing: 4 Labor
Manufacturing*: 16 Labor
Sales: 8 Labor
Advertising: 1 Labor

Optimal 2-Input Factory: 142 Labor
Basic Store: 49 Labor

Large (4x4): Quadruple Strength
Overhead: 90 Labor
Purchasing: 8 Labor
Manufacturing*: 24 Labor
Sales: 16 Labor
Advertising: 2 Labor

Optimal 2-input Factory: 242 Labor
Basic Store: 98 Labor

*Manufacturing units are equal in labor to a Farm's Crop, Livestock and Processing units.

Large Factories show a proportional decrease in costs not only in their reduced Overhead but their reduced Labor costs in Manufacturing. The 242 Labor Cost of a Large Factory is only 85% of what you would expect from the trend of doubling costs.

Notes:
-The Capacity and Throughput of the units of a Firm Doubles with each size category.
-Retail Stores have the same Costs as Farms and Factories of the same size.
-Discount Megastores don't get the same cost benefit as Large factories because they have no production units.
-Overhead accounts for about 1/3 of the cost of a fully developed Factory and 1/2 the cost of a fully developed Store.

[counting]

Really impressive and good works

What's your game setting with data about RWR and wages? No inflation? Low macro economy realism? In release or post-beta versions?

[counting]

Somethings can be updated:

1. retail stores' overhead
2. Training cost (at full)

BTW another optimal 2-input factory layout in small and medium factories can be (4 purchases, 4 manufactures, 1 sale), with a bit less labors, when it doesn't operate at full utilization, 1 sale can handle the throughput of 4 manufactures.