ABCDEFGHIJKLMNOPQRSTUVWXYZ
1
© John Olivant 2020
2
PRODUCT COSTING MODEL
3
Explanatory Notes:
4
Product:Mt T-shirtsData and text can only be input in the brown unprotected boxes
5
6
Batch Size (units)200
Batch size can be from 1 item upwards
7
200
8
Materials:
9
10
QtyMaterialsCost Shipping Other Total
11
£££
12
200T-shirts blanks (£2 ea)£400.00£50.00£450.00
Enter each material component separately.
13
£0.00
Qty and materials columns are descriptive only.
14
£0.00
Enter the cost of each component as the total for the required quantity.
15
£0.00
Enter shipping costs incurred on sourcing components.
16
£0.00
Include packaging materials as a separate component.
17
£0.00
18
£0.00
19
£0.00
20
£0.00
21
£0.00
22
Batch Total£450.00
23
24
Production Costs:
Cost Shipping Other
25
QtyProcess£££
26
200Printing Costs (Ink etc)£1.00£0.50£300.00
This includes any production costs with an identifiable and quantifiable cost.
27
£0.00
E.g. Processing costs, equipment hire etc
28
£0.00
Include the costs of any sub-contracted processes.
29
£0.00Enter any shipping costs involved in sub contracted processes (as a whole not per unit)
30
£0.00
31
£0.00
32
Batch Total£300.00
33
Per Item £
34
Total materials / production Cost
£750.00£3.75
35
36
37
Labour Cost
38
No. of labour hours3.00
Total time to manufacture and package this batch.
39
Hourly rate£10.00Target hourly rate for your labour. This should never be below the minimum wage and should incude employment costs such as employers NI, pension contrubitions etc.
40
41
Time cost per batch£30.00£0.15
42
43
44
Profitability:
45
Recommended Retail Price (RRP)£12 £12.00
The final price to the retail customer
46
Retail Margin0.00%
% retail margin to be retained by the retailer, leave as 0 if direct selling
47
Trade Price£12.00
The price at which you will sell to a retailer
48
Total material/time cost£3.90
The total cost of materials, production costs and your making time (from above)
49
Profit Contribution (before overheads)
£8.10
The profit retained by you after deducting all costs, but excluding overheads.
50
51
Profit Contribution %67.50%
The profit contribution expressed as a percentage of the sales price received by you.
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100