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Textile Costing · Lecture 20
Simple Fabric Costing
Container loading, export costs per metre, sale proceeds and the contribution per metre and per loom per day for an export grey fabric.
FCLExport cost/mContribution per loom
How many metres fit in a container?
A 40 ft container carries 57,000 lb. Divide by the yarn weight of one metre (warp + weft, with contraction) and you know the metres per container — and therefore how the fixed export charges (transport to port, forwarding, freight, bank charges) spread over each metre.
| A | B | C | |||
|---|---|---|---|---|---|
| 1 | Yarn in one unit of fabric | ||||
| 2 | Ends / picks per inch | ||||
| 3 | Warp / weft count (Ne) | ||||
| 4 | Width (in) | ||||
| 5 | Warp / weft contraction | ||||
| 6 | per yard | per metre | |||
| 7 | Warp (lb) | 0.2475 | 0.2707 | ||
| 8 | Weft (lb) | 0.2363 | 0.2584 | ||
| 9 | Total (lb) | 0.4838 | 0.5290 | ||
| 10 | Container payload (lb) — 40 ft | ||||
| 11 | Quantity per container (m) | 107,745 | |||
| 12 | Variable export cost per metre | ||||
| 13 | Transport to port (Rs per container) | 0.139 | |||
| 14 | Ocean freight (US$) | 0.278 | |||
| 15 | Forwarding charges (Rs) | 0.032 | |||
| 16 | Foreign bank charges (US$) | 0.111 | |||
| 17 | Local bank charges (Rs) | 0.028 | |||
| 18 | Price (US$/m) | Rs/US$ | |||
| 19 | Exchange rate | ||||
| 20 | Export surcharge 0.25% of proceeds | 0.105 | |||
| 21 | Commission (1% of proceeds) | 0.420 | |||
| 22 | Total export cost per metre | 1.114 | |||
| 23 | Contribution | ||||
| 24 | Sale proceeds per metre (Rs) | 42.00 | |||
| 25 | Variable production cost per metre (Lecture 19) | ||||
| 26 | Total variable cost per metre | 30.32 | |||
| 27 | Contribution margin per metre | 11.68 | |||
| 28 | Loom production per day (m) | ||||
| 29 | Contribution per loom per day | 5,073 | |||
blue = input (edit me)grey = formula (click to see it)
Compare the Rs 5,073 contribution per loom per day with the loom’s daily fixed cost (about Rs 4,000 in Lecture 8) and the order is worth taking — but only just. A one-cent drop in the dollar price removes Rs 0.60 per metre, a quarter of the margin.