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How does automation affect unit costs? |
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Automation levels affect labor costs on a per unit basis. As a rule-of-thumb, each point of automation reduces labor content by about $1.25. (This varies with the current labor contract. At the beginning of the simulation it is more like $1.12. Second Shift costs also drive up labor content.) As a rough example, if it costs you $10.00 in labor to make each unit when the automation is 3.0, increasing automation to 4.0 will reduce labor costs by $1.25 next round.
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