Cost price
- Marie-Noëlle Lamothe
Calculation of cost price
1 - Material : Total of all products and material cost listed in the order.
2 - Labor : Total of money value for labor time triggered by listed product and material in the order.
3- Manufacturing overhard cost : Total of all MOC triggered by listed product and material in the order (see MOC doc)
4 - Cost price : Sum of material + labor + MOC
5 - % Profit : Allow to calculate suggested detail price in order to obtain desired profit margin. i.e. What should be my selling price in order to make a certain profit margin, based on the actual cost price.
6 -Suggested detail : Selling price project should have to obtain desired profit margin.
Applied formula : Cost / (100-%MOC)
7 - Gross profit margin : Actual project’s profit margin, based on the project’s sub-total
Formula : ( SubTotal - Cost) / SubTotal)
Calculation of retail price
1- Detail price : Price total for all products and materials listed in the order. Corresponds to sub-total
2 - Fixed expenses : Sum of all fixed expenses generated per product (Configured in product or category file, as a fix value or percetentage.)
3 - Variable expenses : Sum of all variable expenses generated per product (Configured in product or category file, as a fix value or percentage)
4 - Earning : Detail price - expenses - cost price