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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.

Dyed fabric costing — 40 ft container of 20×20/60×60
ABC
1Local grey price (Rs/m)
2Wastage + shrinkage in processing
3Gross grey price per finished metre111.11
4B-grade available (half of wastage)5.0%
5B-grade price as fraction of grey
6B-grade proceeds (credit)(2.22)
7Dyeing charges
8Local transportation
9Total processing cost per metre148.99
10Variable export cost per metre (less EDS & commission)
11Metres per 40 ft container
12Transportation 15,000 / container0.139
13Freight US$ 500 × 600.278
14Forwarding 3,5000.032
15Foreign bank US$ 2000.111
16Local bank 3,0000.028
17Exchange rate (Rs/US$)
18Export cost per metre0.589
19Total cost per metre149.58
20Margin on cost
21Proceeds required157.06
22Commission / EDS (on proceeds)
23Proceeds including commission and EDS159.05
24Required sales price (US$/m)2.6508
25Required sales price (US$/yd)2.4239
blue = input (edit me)grey = formula (click to see it)

Original lecture material

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