Factors Calculation
| |
For CEP and EP Sales |
| |
Material 1 = factor input * factor value + freight (freight rate * input value * distance) - scrap (scrap sold * factor value)
Material 2 = factor input * factor value + freight (freight rate * input value * distance) - scrap (scrap sold * factor value)
Material n = factor input * factor value + freight (freight rate * input value * distance) - scrap (scrap sold * factor value)
Total Materials |
| Plus |
Labor (Skilled, Unskilled, Supervisor) * surrogate value (from regression based labor rates provided by DOC) |
| Plus |
Factory Overhead (percentage of materials + labor, based on a surrogate information) |
| Equal |
COM |
| Plus |
SG&A (percentage based on a surrogate information) |
| Plus |
Profit (percentage of COM + SG&A, based on a surrogate information) |
| Plus |
Packing (Materials, including freight + Labor), calculated as materials and labor above using surrogate factor values, and regression based wage rates. |
As changes are made in the Federal Regulations or DOC policy, we will update these tables. If you have any questions or comments,
please e-mail us at questions@captrade.com.
back to Handy Margin Calculation Table |