Calculation of production costs themselves.
Determination of distribution how to add taiwan number on whatsapp costs and overhead expenses.
Let's say that it is necessary to spend 100 rubles to produce lemonade (purchase and purification of water, tarragon extract, sugar, citric acid, container and label).
Cost of bread
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Then we divide the sum of all fixed costs by the number of units of the produced product or service. If the monthly output is 10 thousand bottles, and the total costs are determined at 3 million rubles, then the cost of sales will be equal to:
3,000,000 / 10,000 = 300 rubles.
And the cost of sales, accordingly: 100 + 300 = 400 rubles.
To cover all costs, we need to sell our drink at a price of 400 rubles per bottle. But the purpose of any business is to make a profit. This means that the product will need to be sold at a retail price that exceeds the estimated price, for example, 500 rubles. The subtlety here is that theoretically it is possible to sell it at 1,000 rubles, in which case 600 rubles will go into profit. But a logical question arises: will consumers pay such a price?
Retail price, RUB Profit, RUB Profit per month from 10,000 bottles, RUB.
500 100 1 million
1,000 600 6 million
It's a different matter if the business is engaged in the production of a unique product that is not presented on the competitive market. Then the appointed price is determined only by demand and relevance. If our drink is quite cheap to produce, and overhead costs are high, then the situation should be analyzed. Probably, the rent for office space is extremely high, or the top manager has appointed unreasonable salaries to secondary specialists.
The director of our soft drink plant can calculate the cost price and come to the conclusion that there is no need to increase the retail price, but that it is urgent to start improving all the company's systems in order to reduce costs.
Often, one enterprise produces several different products. For example, you can produce lemonade and croutons with salt. Then, to determine the cost of sales for each type of product, you need to divide the amount of fixed costs per unit of product.
We produced 10,000 bottles of Tarkhun and 1,000 packs of croutons. It is obvious that it is incorrect to take into account 11,000 units of the product, since the costs of different types of goods are completely incomparable.