ORIGINAL: madmodelman
You obviously have no idea of business overheads or how long and how much skill it takes to produce molds, even at one buck/hour. Get real.
Doing some good ole Internet research resulted in this:
Guang-Dong region of china, China (FEJ, Skymaster, Fei Bao And Jet legends factory location) average labor cost for a Direct employee = 2,868 RMB per month = $454.56 US dollars Per month for the year 2011
So if you base that on a 40 hour week x 4 weeks = 160 hours...
$500 (just to be nice!) monthly wage divided by 160 hours =...
$3.125 cents USD per hour!
Lets assume 100 employees = $312.50 USD per hour.
Assuming 10 employee's for each "model sold" = $31.25 per hour per model
Figure 160 Total hours per model =
$500 per model for labor only..
If materials and consumables is 5 to 6 times the cost of labor that is $2500 to $3000 for materials per model
For a grand total of $3000 to 3500 per model..
Lots of Assumptions in there on allot of things, and this doesn't include monthly rent, power, etc for the factory. Over-all, its safe to say the Chinese are making money, but how much isn't for sure since we don't know what they pay for materials, but we can see from the monthly wages that they majority of their profit is in the Low labor costs.