MANUFACTURING/OPERATING EXPENSESMANUFACTURING/OPERATING EXPENSESThe estimation of manufacturing expenses has received less attention in the open literature than the estimation of capital requirements. Operating expenses are estimated from proprietary company files. In this section, methods for estimating the elements that constitute operating expenses are presented. Operating expenses consist of the expense of manufacturing a product, packaging and shipping, as well as general overhead expense. These are described later in this section. Figure 9-6 shows an example of a typical manufacturing expense sheet.