Price Break Down of Knit Garments (Polo Shirt)

Item Description: 100% cotton pique polo shirt with two buttons at front placket w/o any pocket.

At first we will calculate the consumption of body fabric from Size spec which we have got from the buyer. (For calculate the fabric consumption see my others post).

Suppose :
i) The body fabric consumption is 4.05 kg / dozen
    So, Total yarn consumption will be = 4.05 + 9%
                                                        = 4.05 + 0.3645
                                                        = 4.41 kg / dozen
ii) The current yarn price is $4.00/kg

iii) The current Pique knitting cost is $0.20/kg (Knitted by
     circular knit S/J M/c)
 

iv) Average color dyeing cost is $1.21 / kg

v)  Normally Collar & cuff consumption is 60 gram/body
     (1 pc collar & 2 pcs cuff)
     So, for 12 pcs it will be - 0.06 X 12 + 9%  = 0.78 kg / dozen

vi) Collar & cuff Knitting cost is $0.05 (knitted by flat
     knitting m/c)
---------------------------------------------------------------
Now start costing

1st step
Body fabric cost calculation:

Yarn price / kg       = $4.00
Knitting cost /kg     = $0.20
Dyeing cost / kg      = $1.21
_____________________
Finished fabric cost = $5.41

2nd Step
Collar & cuff cost calculation:

Yarn cost/Doz      =  0.78 X $4.00  = $3.12
Knitting cost/Doz  = $0.05 X 12      = $0.60
Dyeing cost          =  0.78 X $1.21  =  $0.94
___________________________________
Collar & Cuff cost / Doz                  = $4.66

3rd Step
Total production cost:
Body fabric cost  ( 4.41 kg X $5.41)    = $23.86 / Doz
Collar & Cuff cost                                =  $4.66 / Doz
CM                                                      =  $6.00 / Doz
Accessories Cost                                 =   $3.00 / Doz
_______________________________________
Total production cost:                       =  $37.52 / doz
 

Final Step

Fob pricing of per piece polo shirt:

Total production cost                    = $37.52 / doz

Commercial cost will be (3%)          = $0.95 / doz (Except CM)

Profit will (20% of CM)                   = $1.20 / doz 

_______________________________________

Total FOB price (doz)                     = $39.67 / doz (Without commission)

Fob price per piece will be             = $3.3058 / pc (Without commission)

Buyers Commission (Normally- 7%) = 42.66 / Doz

Final quoted price for buyer    = $3.55 / pc (FOB)