Buttons Zippers Air Freight Wages paid to direct workers Tax on Sales Insurance On Machine Research

Variable Cost Fabric for making shirts Box for packing Wages to indirect workers Buttons Zippers Tax on sales Air-Freight

No of direct workers -40 No of Indirect workers -07 Processing cost/ pcs - Rs 30 No. Of Working Days -23 Work Hours -480 mins Labour Cost - Rs 1,80,000.00 Prdn Cost - Rs 70,000.00 Variable Cost- Rs 40,000.00 Profit - Rs 19,000.00

Fixed Cost- Lb.Cost + Prd cost

= 2,50,000.00

Break Even Point=

2,50,000 1- 40,000.00 3,09,000.00

= 250000 = 287026 0.871 NO OF PCS= 287026 = 9567 PCS. 30

Amount Of Sales- Rs 3,09,000

Variable Cost Fabric Rs 50.40 Trimmings Rs 10.00 In.Transport Rs 02.00 Packing - Rs 10.00 TotalRs 72.40 Total Cost- 78.3 Profit(10%)- 7.83 Cost of the garments- 86.13 CMT Price-5.9 +10.00+2+10+7.83=35.73 or Rs 36

Calculate the cost of the garment in US $ and per day production

Qty- 50,000 pcs Consumption:- 2.5 mts/shirt Fabric Cost:- Rs 45/mtr Accessories Cost:- Rs 10/Shrt No of pcs produced/Day:- 12/m/c Total Machines:- 200 Fixed overhead :- Rs 1000000 Take 7% for quality production 4% wastage for fabric 26 working day per month 1 US $ = Rs 50.00