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There are two significant components of cost to manufacture a model - assembly labor and design/manufacture of die-cast tooling. For a small number of models, hybrid construction saves some costs for tooling while accepting some increased costs for assembly labor compared to all-die-cast construction. For larger numbers of models, the high cost to design/manufacture die-cast tooling is distributed over a larger production run and therefore reduces the tooling cost per model as well as the assembly labor cost. So, hybrid has lower cost-per-model for smaller numbers of models and all-die-cast has lower cost-per-model for larger numbers of models. The question is how large a production run justifies the additional investment in die-cast tooling rather than accepting the increased assembly labor costs of a hybrid.

MELGAR

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