Production Costs

As part of an online fashion course run by Parsons and Teen Vogue (Fashion Industry Essentials) I had to make a piece of unconventional jewellery and calculate the production costs.

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Part 1

 

Measuring Tape Choker
Green ribbon             €1.50
Measuring tape         €3.99
.5 hours @ € 9.25 per hour (minimum wage in Ireland) €4.625
Total production cost

€1.50 + €3.99 + 4.625 = 10.115

€10.115
20% profit

10.115 /100 x 20 = 2.023

€2.023
Total cost + profit

2.023+ 10.115 = 12.138

€12.138

 

Estimated retail price €15

 

Part 2

 

This table demonstrates the cost of production if the materials were bought in bulk. I sourced the materials online and calculated how much it would cost to make one using bulk materials.

 

Measuring Tape Choker
Green ribbon             €0.86
Measuring tape         €0.48
.5 hours @ € 9.25 per hour (minimum wage in Ireland) €4.625
Total production cost

.86 + .48 + 4.625 = €5.965

€5.965
20% profit

€5.965/100 x 20 = €1.193

€1.193
Total cost + profit

€5.965 + €1.193 = €7.158

€7.16
Estimated retail price €15

 

As seen above it is much cheaper to produce the Measuring Tape choker when materials are bought in bulk. This lowers the total production cost and increases overall profit.