Apparel Costing

Apparel Costing

Prepared by: [YOUR NAME]
Email: [YOUR EMAIL]

In the dynamic world of fashion, accurate budgeting and forecasting are essential for success. This apparel costing document provides a structured overview of anticipated expenses and revenue, empowering your organization to make informed financial decisions. By analyzing the cost components, businesses can strategically position themselves for growth and profitability.

I. Cost Components

The following table outlines the major cost components associated with producing a garment in the year 2050:

Cost Category

Description

Estimated Cost Per Unit

Quantity

Total Cost

Materials

Fabrics, trims, and notions

$15.00

1000

$15,000

Labor

Sewing and assembly costs

$10.00

1000

$10,000

Overhead

Utilities and facility costs

$5.00

1000

$5,000

Freight

Shipping and handling

$2.00

1000

$2,000

Markup

Desired profit margin

$8.00

1000

$8,000

Total Cost

$40,000

II. Budget Forecast

The following forecast table projects the expected sales and revenue for the first quarter of 2051:

Month

Projected Sales Units

Selling Price Per Unit

Total Revenue

Net Profit

January

500

$40.00

$20,000

$6,000

February

600

$40.00

$24,000

$10,000

March

700

$40.00

$28,000

$12,000

Total Q1

1800

$72,000

$28,000

III. Conclusion

This apparel costing analysis serves as a crucial tool for effective budgeting and forecasting, ensuring your organization can navigate the complexities of the fashion industry with confidence. By carefully evaluating each cost component, businesses can set realistic sales targets and achieve sustainable growth in the competitive apparel market.

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