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Labor Force,Handling Costs and Treatment costs

Labor force and handling costs

Adding up all the employees’ monthly salaries is enough to know the global amount of labor costs. The hardest task for the entrepreneur is to evaluate the number of employees he needs, according to the production volume of the company.

For instance, the entrepreneur has to estimate the number of computers a technician can dismantle in one hour. This ratio goes from 4 computers an hour to more than 20, if the technician is competent and is used to working on the same type of equipment.

Treatment costs

Usually, refurbishing and dismantling operations generate income when the equipment and subsets are resold. However, some components (such as faulty CRT screens) and polluting residue represent an added cost,since in most cases the enterprise will have to pay a service provider to take care of the collection of this material. The entrepreneur must find the most profitable and environmentally sound way to get rid of this material,in order to reduce the company’s expenses. Before the collecting stage,the entrepreneur should negotiate the logistical and financial management of the expenses devoted to the final treatment of waste with the client.

The entrepreneur is advised to consider the treatment of ultimate waste as soon as the business is set up. To this end, he must study beforehand the various techniques available and the offer proposed in his country. He may also examine the possibility to let his clients and suppliers take care of the