Plant capacity 2000000

Past Year level of Production 1500000

Average Unit Selling Price $7.20
Total Fixed Cost 2970000
Average Unit Variable Cost $4.50
Average Unit Fixed Cost $2.70
Suggested Unit to be sold 1100000.00 =C6/C8
% of Variable to Unit SP 62.50%
Total sales to Break even Fixed Cost (37.5) $7,920,000.00
7.7778
Coveralls 20% 2000
Boxers 50% 5000
T-Shirts 30% 3000
Current Production 10000
Full Capacity 100000
Sewer / Cutter / PackerWage (per Hour) $15.00
Knitter Wage (per Hour) $20.00
Total Sewing Labour Hours (per month) 1320
Monthly Rent (per month) $4,700.00
Power & Utilities (per month) $1,300.00
Maintaenance $2,000.00
Administrative Overhead $150.00
Master's Salary $60,000.00
$32,750.00
 Knitter (m/8 hour shift) 4000
Cutter (m/8 hour shift) 4500
Sewer(no of T-shirts / 8 hour Shift) 140
Packer(no of T-shirts / 8 hour Shift) 140
Sewer(no of Boxers / 8 hour Shift) 96
Sewer(no of Coveralls / 8 hour Shift) 21

T-Shirt Cost
Cost of Yarn (per kg) $3.75
Yarn required per kg to knit jersey (in m) 3.85 0.25974
Dye House Cost (per metre) $1.15
Jersey required to make 1 T-shirt (in m) 1.1
Price of One Tshirt (COGS) $2.34
Per Hour T-Shirt Made 17.5
Wage for 1 T-Shirt (Knitter) 0.044
Wage for 1 T-Shirt (Cutter) 0.0293333333333333
Wage for 1 T-Shirt (Sewer) $0.86
Wage for 1 T-Shirt (Packer) $0.86

Boxer/ Coveralls Cost

Fabric Cost for Boxers (per m) $0.95
Fabric Cost for Coveralls (per m) $2.70
Total length of Fabric for Boxer(m) 1.12
Total length of Fabric for Coveralls(m) 3
Elastic Cost for Boxer (per Garment) $0.09
Velcro cost for Coverall (per Garments) $0.25
Price of one Boxer $1.15
Price of one Coveralls $8.35
Wage for 1-Boxer(Knitter) 0.0448
Wage for 1-Boxer(Cutter) $0.03 0.08
Wage for 1-Boxer(Sewer) $1.25
Wage for 1-Boxer(Packer) $1.25
Wage for 1-Coveralls(Knitter) $0.12
Wage for 1-Coveralls(Cutter) $0.08
Wage for 1-Coveralls(Sewer) $5.71
Wage for 1-Coveralls(Packer) $5.71

Tender 1
 Washable Trousers 28450
Fabric Cost (per m) $3.10
Zipper (per pair) $0.45
Buttons (per pair) $0.45
Velcro (per pair) $0.45
Total Length of Fabric (Trouser) 1.50
Sewer(no of Trouser / 8 hour Shift) 35
Packer(no of Trouser / 8 hour Shift) 35

Tender 2
Polyster / Ryan Cost (per m) 2.9
Length of fabric (in m) 1.7
Zipper + Butto + Velcro 0.45
Sewer(No.of Cargos per 8 hour shift(Nos)) 35
Cost of Goods Sold 5.38
Price of One Tshirt (COGS) $2.34

Sewer Wage/Tshirt

Price of one Boxer (COGS) $1.15

Price of one Coveralls (COGS) $8.35

COGS of one Trouser (COGS)

COGS of One Cargo 5.38
Knitter
Cutter
Sewer/Packager

Fabric Used (mts)/Unit

Units Produced / Shift
Hours Taken / Unit

Direct Materials
Fabric
Zipper
Elastic/Velcro
Dye
Material Cost
Direct Labor
Sewer
Knitter
Cutter
Packager
Labor Cost
Total Direct Costs/Unit
Absorption of Manufacturing overhead per unit
Sewing hrs per unit of product
Manufacturing overhead per unit
Total Manufacturing cost(Direct Costs+Manufacturing OH)
Absorption of Administration overhead per unit
Sewing hrs per unit of product
Administration overhead per unit
Full Cost(Manufacturing cost+Admin OH cost)
Considering 23% Margin-cost
Bid Price
Capacity
(mts)/Shift Wage/Hr

4000 20
4500 15
15

Coveralls
1.5 1.7 1.11 1.12 3
35 35 140 96 21
0.229 0.229 0.057 0.083 0.381

Washable
Cargo Tshirt Boxer Coveralls
Trousers

4.65 4.93 1.07 1.06 8.1

0.45 0.45 0 0 0
0 0 0 0.09 0.25
0 0 1.26 0 0
5.1 5.38 2.33 1.15 8.35

3.43 3.43 0.86 1.25 5.71

0 0 0.04 0 0
0.04 0.05 0.03 0.03 0.08
3.43 3.43 0.86 1.25 5.71
6.9 6.91 1.79 2.53 11.5
12 12.29 4.12 3.68 19.85

0.22587 0.22587 0.05714 0.08333 0.38095

0.602512556449 0.630009215 0.21499646465 0.3135396465 1.43337247474747
12.60251255645 12.92000922 4.33499646465 3.9935396465 21.2833724747475

0.22587 0.22587 0.05714 0.08333 0.38095

0.958358898512 1.141782299 0.34197424242 0.4987174242 2.27992803030303
13.56087145496 14.06179151 4.67697070707 4.4922570707 23.5633005050505
3.119000434641 3.234212048 1.07570326263 1.0332191263 5.41955911616162
16.6798718896 17.29600356 5.7526739697 5.525476197 28.9828596212121
In Direct Expenses Total Factory Office/Other
Factory Rent 56400 45120 11280
Heat+ Utilities 15600 12480 3120
Internet 1800 0 1800
Salary 60000 0 60000
Maintenance 2000 2000 0
Misc 18600 0 18600
Total Costs Annual 154,400.00 59,600.00 94,800.00

Cost driver is labour hrs

No.of labour hrs required for sewing per month 1320

No.of labour hrs required for sewing per year 15840
Absorption of manufacturing overhead per hr of sewing 3.7626262626
Absorption of administration overhead per hr of sewing 5.9848484848

Estimate of OH for Washable Trousers

Time required for sewing -1 unit of Trouser 0.22857143
Time required for sewing -28450 units 6502.8571835
Total Sewing Hours 22342.857184
Absorption of Manufacturing overhead per hr of sewing 2.6675191767
Absorption of Administration overhead per hr of sewing 4.2429667442

Estimate of OH for Washable Trousers

Time required for sewing -1 unit of Cargo 0.229
Time required for sewing -2500 *12 units of cargo 6870
Total Sewing Hours 22710
Absorption of Manufacturing overhead per hr of sewing 2.7892558344
Absorption of Administration overhead per hr of sewing 5.0550418318