## Costing of Polo Shirt

Description of product

Here I am going to calculate price of a polo shirt of having following configuration:

100% cotton pique polo-shirt containing two buttons in the front placket having side band with flat-knit collar and cuff and Small embroidery on left chest.

For calculating price of polo-shirt at first we have to calculate the fabric consumption from the size spec sheet given by buyer.

If you want to know how to calculate the consumption of polo-shirt then you can check my other article “Fabric consumption of polo-shirt”.

Let consider,

 Fabric consumption per dozen : 3.80 kg So, Yarn consumption will be : 3.80 + (3.8×8%) = 4.104 kg/dz

### So, Fabric costing

 So, costing for yarn per dozen = US\$3.90 × 4.104 kg/dz(price of yarn = US\$3.90/kg) = US\$ 16 /dz Knitting charge (pique) = US\$ 0.15 × 4.104/dz(Knitting charge = US\$ 0.15/kg) = US\$ 0.62/dz Dyeing Charge = US\$ 1.3 × 4.104/dz(Dyeing Charge = US\$ 1.3/kg) = US\$ 5.34/dz So, Finished fabric cost per dz = (16+0.62+5.34) US\$/dz = 21.96 US\$/dz

### For Collar & Cuff Costing

 Yarn cost = 0.70 × 3.90 US\$/dz = 2.73 US\$/dz Knitting Charge = 0.07 × 12 =0.84 US\$/dz Dyeing Charge = 1.3 × 0.70 = 0.91 US\$/dz So, Finished collar & Cuff cost = (2.73+0.84+0.91)US\$ = 4.48 US\$/dz

### Now, production cost per dz

 For Fabric = 21.96 US\$ For Collar & Cuff = 4.48 US\$ Cost Management (CM) = 6 US\$ Accessories cost = 3 US\$ So, Total Production cost = 34.44 US\$/dz

## Finally FOB price

 Total production cost = 34.44 US\$/dz Commercial Cost (3% of total production cost) = 0.88 US\$/dz (without CM) Profit ( 20% of CM) = 1.2 US\$/dz Total FOB Price Per Dz = 36.52 US\$/dz So, FOB price per piece = 3.04 US\$/pc

Final quoted price for Buyer = 3.1 US\$ / pc (FOB)

By

Engineer Sheikh Nurja

B.Sc engineer of textile

Merchandiser at buying house