Issue link: https://docs.hic.us/i/403552
(Hours Per Week) X (Weeks Per Year) = Total Annual Hours (40 Hours) X (48 Weeks) = 1920 Annual Hours of Production Step 2: Calculate the cost per hour of production. (Total Yearly Costs) / (Total Annual Hours of Production) = Hourly Cost ($60,000) / (1920 hours) = $31.25 per hour Step 3: Calculate the average number stitches per hour that you can produced. (Average Speed Of Machine) X (minutes per hour) = Stitches Per Hour (800 spm) X (30 minutes) = 24000 stitches per hour (per sewing head) **Multi-head users - Multiply this number by the number of sewing heads to achieve your average number of stitches per hour. Step 4: Calculate the cost per 1000 stitches. (Hourly Production Cost) / (Stitches Per Hour) = Cost Per Stitch ($31.25 per hour) / (24000 stitches per hour) = $0. 0013 per stitch Step 5: Calculate the dollar cost per 1000 stitches. (Cost Per Stitch) X 1000 = Price Per 1000 stitches ($0.0013) X 1000 = $1.30 per 1000 stitches. Now as you go through these formulas, you might disagree with some of the recommended numbers. That's OK, just use what you think is accurate for your situation, but make sure that you can achieve it. There are other hidden factors that you may need to consider when quoting a price for a specific logo. For example, if your machine speed is 600 stitches per minute, that equals 13 stitches per second. Each thread trim will take about 5 www.hsi.us care@hsi.us 74