Issue link: https://iconnect007.uberflip.com/i/1496178
68 SMT007 MAGAZINE I APRIL 2023 "With benefits, they must cost more like $35 an hour?" Sue said, and Bubba quickly replied, "More like $48 an hour. Medical insurance, Social Security, Medicare—it adds up and they get two weeks' vacation." "So, you charge about $55 an hour?" Andy asked. " D o n' t f o r g e t r e n t f o r t h e b u i l d i ng , equipment, and supplies for the restrooms, etc.," Bubba said. "Like I said, it adds up quickly." Sue had been quiet as she contemplated the costs and how much Bubba had to charge. "So, your cost is maybe in the low $50s?" Sue asked. "How about paying me? I'd like to earn at least $100,000 per year," Sam said. "So that adds at least $2.50 per hour," Sue suggested. Bubba was impressed as he could tell that Sue quickly divided $100,000 by the 20 auto techs and then by 2,000 hours in a work year. "So now we are at mid-$50s to even low $60s an hour," Andy said with a noticeable sigh. Bubba continued to add in more costs: "Who answers the phone, balances the books, makes out the payroll, and orders parts? I have four workers who would be called 'indirects' in a factory that do these tasks," Sam summarized. "Now it seems like you need to charge somewhere in the mid-$60s," Andy said, and Bubba confirmed that it was actually about $67 per hour. "So, even though you pay your auto techs $30 an hour, each hour they work costs you $67?" Andy said, continuing the conversation. "Yep, I charge $78 an hour," Bubba concluded. "The profit goes to emergency and savings funds. I hope one day to buy this building with some of the savings. By the way, without this fund, making it through COVID lockdowns would have been tough." Professor Patty says that doubling what the workers are paid comes close to their total cost. Two times $30 an hour equals $60 an hour. So, that is a little low." Sue and Andy thanked Sam and headed back to Ivy-Benson. Now, how does all this relate to the cost of wiring stereo-sized electronic components and housing them? Stay tuned to find out. SMT007 Ronald C. Lasky is an instructional professor of engineering for the Thayer School of Engineering at Dartmouth College, and senior technologist at Indium Corporation. To read past columns, click here. Download The Printed Circuit Assembler's Guide to… Solder Defects by Christopher Nash and Dr. Ronald C. Lasky. You can also view other titles in our full I-007eBooks library. Who answers the phone, balances the books, makes out the payroll, and orders parts?