The electronic pianos division is highly automated. The manufacturing costs depend primarily on the number of subcomponents in each piano. In contrast, the traditional pianos division relies primarily on a large labor force to hand-assemble pianos. Its costs depend on direct-labor hours.
The costs of building services depend primarily on the square footage occupied. The costs of materials receiving and handling depend primarily on the total number of components handled.
Pianos M1 and M2 are produced in the traditional pianos department, and E1 and E2 are produced in the electronic pianos department. Data about these products follow: