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For DJC, depreciation cost contributes 6.89% to its total product cost whereas for ACC it is 15.09%. Overall production cost for DJC is lower by $7.69 when compared to ACC.
DJCâs potential in US market is analyzed in exhibit (3). DJCâs expected total product cost in US is lower by $5.859 when compared to its Kawasaki plant...
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This significant cost advantage is due to the less material cost in US market. When we compare DJCâs potential cost structure in US with ACC, cost difference increases to $13.549 per 1000 units. This clearly indicates the prospects for DJC in US market.
Elemental cost analysis is performed for both ACC and DJCâs potential US plant...
General points of the essay
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American Connector Company - A Competitive Assessment
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