Fashion/Film

Production Costs

Making my Earrings:

Cost of paperclips for 100 pack = .48 cents each

Cost of backings for 100 each =.10 cents each

Wages – .5 hour at $9/hour = $4.50

20 percent profit = $5.52

Cost = $8.95

I think this is a pretty fair price for the kind of earrings I would be selling, and that my friends and people I know would buy them not only to support me but also because they are unique and very cute!

Reducing the cost –

Cost of paperclips – 200 pack – .20 cents each

Cost of backings – .10 cents each

Wages – .33 hour at 9/hour = 2.97

production = 3.27

.20 profit = .657

Total cost = 4.00

We reduced the cost in half by making a few small changes to the quantity of goods we were buying and also reducing the hours for the production.

 

 

 

 

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