In order to produce these pipes, the firm requires different materials in different combinations. It requires machines of different types and sizes, skilled and unskilled labour and raw materials. But for the purpose of this research work, we shall concentrate on raw materials and two factors: man and machine hours needed for production from the 1st day to the 31st day of May, 2011. Other factors are held constant. The major raw materials used by the firm in the production of the above products include:
Resin (the major raw material)
Calcium carbonate
Tio 2
Stabilizer
Cast
Carbon black
Blend
The raw materials are mixed in different proportions and as such take different percentages of the production costs.