How to Calculate CM Produced by a Line in Dollar? 2016 by Prasanta Sarkar May 0 Sune Perea CU See er ers ie a de An OCS reader asked me this question: Sometimes people ask me "how much CM (in USD) is achieved today in your factory’. It seems confusing to me. Would you please tell me how can I calculate CM in daily basis? And why | need to calculate every day? On daily basis you calculate line output. And you have the SAM for the style(s) you are making in the line. With these data you calculate how much SAM is produced by the line. | 66 SAM Produced by line = (Line output *StyleSAM) 99 If you have this information, calculation of CM achieved by the line in dollar is an easy task. Read this post to know how. | will show you two different ways for calculating CM earned amount by the line. These methods can be used for calculating CM achieved by the factory as well as CM achieved by the line. The first method: In the costing sheet you include product CM cost, which is your garment manufacturing cost per unit. CM cost is part of FOB. Most of the time CM cost per garment is shared with buyer (in open costing). So you need to know CM cost per piece for the product you are making. Buyer pays you CM on total quantity you shipped. Therefore every piece you produce, you are virtually earning dollar equivalent to CM. In this method CM earned is calculated as total line output (pieces produced by the line) multiply by CM cost per garment. Ifyou want calculate CM achieved by your factory then find total production done by the factory and multiply it by CM cost. Calculation method: 1. From cost sheet collect garment CM (CM is fixed for an order). This data is normally available with merchandiser. In case cost of manufacturing is in local currency, convert it into dollar using currency ratio. 2. Count total piece produced by a line Now calculate