Tag: basic costing formula of polo shirt

Costing of Polo Shirt

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

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

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

Written By

Engineer Sheikh Nurja

B.Sc engineer of textile

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