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Should-cost of a moulded plastic part

The prompt

The fictional Pune appliance maker buys 400,000 moulded plastic drum covers a year. The supplier quotes INR 300 per part. Each part uses 1.25 kg of plastic resin at INR 120 per kg. It takes 60 seconds on a moulding machine that costs INR 2,400 an hour to run, including its depreciation and power. Labour to trim and pack is INR 10 per part. Allow 15 percent of direct cost for overhead and scrap, and a 10 percent profit margin for the supplier on top. What should the part cost, and how big is the gap?

Your interviewer will share data as you ask for it. Ask clarifying questions, state a hypothesis, then lay out your structure out loud before you calculate.

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