Listed below is an example on how to price knitting projects: |
|
| Project Name: Fictitious | |
| Make Charges: | |
| Material: yarn | 4.00 |
| Supplies buttons 3.00 elastic .50 |
|
| Total Charges | $7.50 |
| Labor: $10.00 hr. x 2 | 20.00 |
| Total Labor: | $27.50 |
| Estimated Overhead/One Month Projected Sales: | |
| Telephone Internet @ 19.95 mo/12 projected sales= | 1.66 |
| Your office is 7% (1 ÷ 7) of the total area of your home | |
| Rent 1070x.07=74.90 mo/12= Utilities 50x.07=3.50/12= | 6.24 .29 |
| Selling Fees | |
| Equipment depreciation laptop, knitting machines, ex. @ $2,300 over 3 years; $767 yr. (est. 12 sales per mo. x 12= 144 yr x 3= 432 sales/767=) | 1.77 |
| Total Overhead: | $3.43 |
| Total Costs: | $30.93 |
| Keystone 33.3% Markup | 10.30 |
| Total Markup | $41.23 |
| Research & Development @ 10% | 4.12 |
| Total | $45.35 |
