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# Knit Garments CM Calculation Guidelines

CM Calculation

In Apparel and Fashion industry, CM means Cost of Manufacture. In the garment manufacturing industry, CM means Manufacturing Cost of one dozen or 12 pcs garments. To calculate the CM of 12 pcs knit garments we must follow the below criterion-

1. monthly expenditure of the industry
2. total no. of running machine
3. machine qty to execute the layout of the specific order,
4. productivity per shift
5. dollar exchange rate

Let,

• Monthly Industry Expenditure is BDT 80,00,000
• Working days of the 30 days = 26 days
• Daily Factory Expenditure = BDT 307692.3 (80,00,000 / 26)
• Total no. of running machine qty = 150 Machine
• Daily Expenditure of one Machine = BDT 2051.3 ( 307692.3 / 150)
• Machine qty for the layout (for the said order) = 25
• The daily cost for the layout = BDT 51282.1 (2051.3 x 25)
• Linewise Production/hour = 145 pcs
• Working hour / shift = 10 hours
• Line wise production per shift = 1450 pcs (145 x 10)
• CM of one pc garment = BDT 35.37 ( 51282.1 / 1450)

So, CM (Manufacturing Cost per dozen)= BDT 424.44 (Manufacturing cost per pc x 12)

Dollar exchange rate: 1 USD = 84 BDT

So, CM (Manufacturing Cost per dozen in USD = \$ 5.05

25% Profit = \$ 1.26

So, Final CM = USD 6.31 (\$ 5.05 + \$ 1.26 )