Page 333 - CITS - Fashion Design Technology - Trade Practical

FASHION DESIGN & TECHNOLOGY - CITS

TASK 5: Identify the overhead expenses

• Identify the overhead expenses related to garment production.
• These may include rent, utilities, machinery, maintenance, insurance, administrative costs, and other
miscellaneous expenses.
• Allocate a portion of these costs to each garment by dividing the total overhead expenses by the expected
production quantity.
• This will give you the overhead cost per garment.

TASK 6: Identify the cost of packaging materials and shipping
• If applicable, consider the cost of packaging materials and shipping.
• Include expenses such as boxes, bags, tissue paper, labels, and transportation costs.
• Determine the cost for each item and add it to the cost sheet.

TASK 7: Determine Markup and profit margin
• Decide on the desired profit margin and add a markup percentage to cover your operating expenses and
generate profit.
• Multiply the total cost (sum of material cost, labor cost, overhead expenses, packaging and shipping) by the
markup percentage and add it to the cost sheet.

TASK 8: Calculate the total cost
• Sum up all the cost components (material cost, labor cost, overhead expenses, packaging and shipping, and
markup) to obtain the total cost of the garment.

TASK 9: Additional information
• Include any additional information that may be relevant, such as product specifications, size range, and any
special notes or considerations.

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CITS : Apparel - Fashion Design & Technology - Exercise 28