COST OF MAKING (CM) 


= {(Monthly total expenditure of the following factory / 26) / (Qty of running Machine of your factory of the following month) X (Number of machine to complete the layout)} / [{(Production capacity per hr from the existing layout,excluding alter & reject) X 8}] X 12 / (Dollar conversion rate)

= [{(50,00,000 / 26) / ( 100 ) X (25)} / {(200) X 8}] X 12 / 74

= [{192307.7 / (100) X (25) } / 1600] X 12 / 74 

= (48,076.9 / 1600) X 12 / 74

= 30.048 X 12 / 74

= 360.58 / 74

= $4.873 / dozen (this is the making cost (12 pcs) of the following items) 

However, normally at present (after starting the new salary scale)in Bangladesh we calculate the CM of any item consider the overhead sewing machine cost 1200 tk to 1400 tk/day that means $16.216 to $18.92/per day. 

The above is for a non-compliance factory. For the a compliance factory the per day machine cost will be 1800 tk to 2100 tk ( $24.32 to $28.37)


SO, if the an item produces 1600 PCs per day using 25 machines, then the CM will be 

= Overhead machine cost X require machine / produce quantity X 12 / $74

= 1400 X 25 / 1600 X 12 / 74

= $3.547/DOZ