Order Profitability and Factory P&L
Six orders all made their costed margin, and the factory lost money in the month they shipped. You learn where the gap between a cost sheet and a profit and loss account comes from. You see what an idle line-day costs, when work below full cost is right, and the exact point where it turns ruinous. And you find the one number that ranks orders when minutes are the scarce thing.
Published by Merchandising Academy · First lesson free to read
Course value
What will you be able to do?
Work outcome
You can turn an enquiry into a quotation you can stand behind, read a contract for the clauses that will cost you, and decide on the numbers which orders and which accounts to keep.
Who it is for
Factory and supplier teams.
What you will produce
You build a profitability file for one factory month. You build the bridge from six costed margins to the net result. You rebuild the absorption rate on the volume actually sold. You find break-even in line-days with the margin of safety. You set a contribution floor for one line-day. You build an accept-or-refuse test for work below full cost. And you find the spillover point where that work stops paying.
Learning format
6 lessons · 0 templates · workplace calculations and decisions.
Best taken after 8.1 Garment Costing. You can read this one without it. Some of the arithmetic will just have to be taken on trust.
Lessons
- 01Six profitable orders and a factory that lost money🔒20 min
- 02The rate, the base, and the volume nobody sold🔒20 min
- 03What a factory has to sell before it earns anything🔒16 min
- 04Full cost or contribution: which decision is in front of you🔒20 min
- 05The contribution trap, and where it flips🔒18 min
- 06Correctly costed, correctly made, and wrong🔒16 min