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Textile Costing · Lecture 21
Simple Dyed Fabric Costing
From local grey price through wastage, dyeing charges and export costs to the US-dollar price a dyed fabric must fetch.
Gross grey priceB-gradeRequired price
Working back from cost to the quotation
A commission dyer or an exporter who buys grey fabric starts from the local grey price, grosses it up for the wastage and shrinkage of processing, credits the B-grade that can still be sold, adds the dyeing charge and transport, then the variable export cost, a margin on cost, and finally commission and the export surcharge — which are percentages of the proceeds and must therefore be divided out, not added.
| A | B | C | |||
|---|---|---|---|---|---|
| 1 | Local grey price (Rs/m) | ||||
| 2 | Wastage + shrinkage in processing | ||||
| 3 | Gross grey price per finished metre | 111.11 | |||
| 4 | B-grade available (half of wastage) | 5.0% | |||
| 5 | B-grade price as fraction of grey | ||||
| 6 | B-grade proceeds (credit) | (2.22) | |||
| 7 | Dyeing charges | ||||
| 8 | Local transportation | ||||
| 9 | Total processing cost per metre | 148.99 | |||
| 10 | Variable export cost per metre (less EDS & commission) | ||||
| 11 | Metres per 40 ft container | ||||
| 12 | Transportation 15,000 / container | 0.139 | |||
| 13 | Freight US$ 500 × 60 | 0.278 | |||
| 14 | Forwarding 3,500 | 0.032 | |||
| 15 | Foreign bank US$ 200 | 0.111 | |||
| 16 | Local bank 3,000 | 0.028 | |||
| 17 | Exchange rate (Rs/US$) | ||||
| 18 | Export cost per metre | 0.589 | |||
| 19 | Total cost per metre | 149.58 | |||
| 20 | Margin on cost | ||||
| 21 | Proceeds required | 157.06 | |||
| 22 | Commission / EDS (on proceeds) | ||||
| 23 | Proceeds including commission and EDS | 159.05 | |||
| 24 | Required sales price (US$/m) | 2.6508 | |||
| 25 | Required sales price (US$/yd) | 2.4239 | |||
blue = input (edit me)grey = formula (click to see it)