Suppose:
Total
yarn consumption =4.05
+9% OWF
=4.41Kg/
dz
2.
The current yarn price = $ 4.1 /kg
3.
PK knitting cost =
$ 0.20/kg
4.
Average color dying only cost =$1.21/Kg
5.
Flat knitting cost = $0.05/body
6.
Color & cuff consumption =60g/body
Color
& cuff yarn charge =0.06×12+9%
1st
Step:
Body
fabric cost calculation
Yarn
price =
$4.00
Knitting
cost =
$ 0.20
Dyeing
cost /kg =
$1.20
Finished fabric cost =
$5.41/kg
2nd Step
Color
& cuff cost calculation
Yarn cost
/dz =$0.78× 4.00
Knitting
charge /dz =$0.05
×12
=
$0.66
Dying
charge =0.78×$1.21
=
$0.94
Color
&cuff costing =$
4.66
3rd Step
Total
production cost
Body
fabric cost /dz = (4.41×$5.41)
=$23.89
Color
& cuff costing =
$4.66
CM/dz =$ 6.00
Accessories
=
$ 3.00
Total
production costing =$
37.52/doz
4th
step:
Final
Cost
FOB price
for buyer:-
Total
production cost =
$37.52/dz
Commercial
cost =
$ 0.95/dz
(3%
accept CM)
Profit of (20%CM) = $1.20/dz)
Total FOB
price =$
39.67/doz
So, Final
Quoted price for buyer =$3.35/PC
(FOB)
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