1. The worksheet is designed to calculate the cost of manufacturing products by listing all ingredients, packaging materials, and labor costs.
2. For each product, you need to fill in the cost per unit for ingredients (e.g., Inner Poly Bags, Outer Printed Label, Labels, Shipping Box) and sum them to get TOTAL COGS.
3. Then, calculate PRODUCTION PER UNIT COSTS including Production Labor, Labeling Labor, Packaging Labor, Distribution Costs, and Handling Other.
4. Add TOTAL COGS and TOTAL OTHER COSTS to get TOTAL COSTS.
5. Subtract TOTAL COSTS from the Selling Price per Unit to calculate GROSS PROFIT.
6. Divide GROSS PROFIT by Selling Price per Unit and multiply by 100 to get COGS % TO WHOLESALE.
7. Use this data to analyze pricing strategy and adjust for different economies of scale or market conditions.
Parent Tip: Review the logic above to help your child master the concept of production worksheet.
