Apparel Costing: Fabric Consumption, CMT, FOB & Landed Cost

What you'll build

What you will be able to do

Each lab ends with a concrete result that you build yourself and the checker confirms, cell by cell.

• Read four cutting markers and work out marker efficiency, fabric consumption per garment with a cutting allowance, and the fabric cost per garment.
• Cost ten trims and packing items per chino, work out how many packs to order for 6,000 garments and see how much of the material cost the trims make up.
• Add up the standard minutes of a chino, derive the factory's cost per minute from its line cost and efficiency, and price the cut-make-trim (CMT) labour per garment and the daily output.
• Build the factory's FOB cost sheet for three styles: direct cost, commercial overhead, total factory cost and an FOB price that leaves the target margin.
• Follow a 6,000-unit chino order from the FOB price to the warehouse: cartons and ocean freight, insurance, CIF value, an illustrative import duty and shipment fees, down to the landed cost per unit.
• Split a 6,250-unit chino order across six waist sizes from a size ratio, fix the rounding difference, add a cutting allowance and work out the plies for the ratio marker.
• Set wholesale prices from landed cost and a target margin, apply the keystone markup to get retail, round to .95 price points, and compare the retailer's margin with the brand's margin in its own web shop.
• Follow one chino through a season of markdowns, compute revenue and gross margin per phase, chart how the margin melts and find the true season margin.