When a manufacturer creates a product the margins that are experienced are important. The margin is where all the bills get paid, the people get paid and the profits come from. In order to ensure the feasibility of this with products, studies are conducted to come up with the cost of production along with the price that item needs to be offered for sale. In order to lower a selling price or create higher margins for the items being produced, a manufacturer has to find a way to lower the cost of production.
