CALCULATING ADDITIONAL PER UNIT COST ON THE GARMENTS

WASHING TROUSERS MONTHLY PRODUCN. IN 5 MONTHS EXTRA REQUIRED EXTRA TIME REQD. TOTAL SEWING HOURS TOTAL HOURS FOR WT 1050 5250 23200 5302.857 15840 21142.86 2.818919 0.644324 4.242967 0.969821 13.55415

TOTAL FACTORY COSTS/TOTAL HOURS PER PRODUCT COST INCREASE OFFICE COST PER UNIT OFFICE COST FULL COST

TOTAL FACTORY COST TOTAL OFFICE COST TOTAL SEW HRS FOR WT

59600 (REFER SHEET 2) 94800 (REFER SHEET 2) 6502.857

BIDDING PRICE FOR WASHABLE TROUSERS BIDDING PRICE FOR CARGO

16.66859 16.47254

THEREFORE BASE PRICE FOR WASHABLE TROUSERS IDEAL/BIDDING PRICE FOR WASHABLE TROUSERS BASE PRICE FOR CARGO IDEAL/BIDDING PRICE FOR CARGO

11.94 16.66859 12.22 16.47254

CARGO MONTHLY UNITS 2500 HOURS/MNTH 571.4286 HOURS/YEAR 6857.143 TOTAL SEWING HOURS 15840 TOTAL HOURS FACTORY COST INC. IN UTILITIES TOTAL 22697.14 59600 3744 63344 2.790836 0.637905 114800 5.139455 1.174733 13.39473

2009 SALES 2009 NET INCOME MARGIN

1350000 310200 22.97778

TOTAL FACTORY COST/TOTAL HOURS PER PRODUCT INCREASE EXTRA SALARY INCREASE TOTAL SALARY TO BE DIVIDED/HOURS PER PRODUCT EXTRA COST FULL COST

IF THE COMPANY IS ABLE TO SELL THE GARMENTS AT THE BIDDING PRICE, THE PROFIT IS MORE IN THE CASE OF VARGO THAN WASHABLE TROUSERS. HENCE, THE COMPANY COULD GO FOR BIDDING CARGO ONLY

PROFIT FOR WASHABLE TROUSERS PROFIT FOR CARGO

88605.95 92334.22