Verified Mathematical Model & Formulation
FOB Price = Fabric Cost + Trims & Packaging + CM (Cut & Make) + Wash/Print + Commercial Overhead + Profit
Generates the standard export garment costing breakdown used by global apparel manufacturers to quote Free On Board (FOB) prices to international retail brands.
Configurable Parameters & Standard Units
- Fabric Cost ($): (Default: 3 usd)
- Trims & Accessories ($): (Default: 0.75 usd)
- Cost of Making (CM Labor) ($): (Default: 1.8 usd)
- Printing, Wash & Embroidery ($): (Default: 0.45 usd)
- Factory Profit Margin (%): (Default: 10 percent)
Standard Worked Example & Practical Verification
Scenario: Woven cotton twill fabric $3.80, trims/zipper $0.90, CM labor $2.20, enzyme wash $0.60, 10% profit margin.
Calculated Solution
$8.45 FOB Export Price per Piece
Practical Takeaway: Fabric accounts for 45% of total cost, CM labor accounts for 26%.
Frequently Asked Questions
What does CM vs CMT mean in garment manufacturing?
CM stands for "Cut and Make" (labor and machine operating cost only). CMT stands for "Cut, Make, and Trim" (labor plus all thread, labels, and packaging trims).