Assumption: The amount of raw materials required for
three months can vary and is dependent on the budgeted
funds available for raw materials and the projected
production requirement.
Raw Material Costs: All raw material costs are based
on USA prices and delivery in the USA. IMPORTANT: The
insulation component will be figured and provided
separately in this projection.

Calculation Procedure: All raw material amounts will be
based on eight-inch diameter flexible duct. This is the
average size used through the size range. This method will
allow a very good projection of the raw materials

Segmentation of Costs: Two segments of component
costs will be detailed: FIRST, the core cost which is
composed of wire, film, and adhesive and SECOND, the
insulation components, insulation, and vapor barrier
material used to insulate the first segment, the core.

NOTE: It should be made clear that the core is used both as a noninsulated product as well as an insulated product.
Math Calculation for Raw Material Requirement:
The following will be shown for each segment insulated and noninsulated core:
NOTE: All material prices are subject to variance and pricing changes and the following are for general guide line purposes

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