Costing the Craft-Fair Aprons
A student plans to sell ten aprons at a school craft fair. She buys 8 m of cotton canvas at B$12 per metre and 2 m of contrast cotton at B$18 per metre. Each apron needs 0.7 m of canvas and 0.15 m of contrast, plus 1 m of twill tape at B$1.50 per metre and a printed label at B$0.40 each. She will cut with a 1 cm seam allowance on all edges and expects 10% fabric waste from squaring the ends and matching the grain. She plans to price each apron at B$18, believing that gives her a good profit. She will spend 3 hours per apron and wants to value her time at B$6 per hour. Stall fee is B$15.
1. Calculate the true cost per apron and the total profit or loss if all ten sell at B$18. Show your working.
Read the worked answer
Materials needed per apron, including 10% waste:
- Canvas: 0.7 m × 1.10 = 0.77 m. Cost = 0.77 × B$12 = B$9.24
- Contrast: 0.15 m × 1.10 = 0.165 m. Cost = 0.165 × B$18 = B$2.97
- Twill tape: 1 m × B$1.50 = B$1.50
- Label: B$0.40
- Materials subtotal = 9.24 + 2.97 + 1.50 + 0.40 = B$14.11
Labour: 3 hours × B$6 = B$18.00
Overhead per apron: stall fee B$15 ÷ 10 = B$1.50
True cost per apron = 14.11 + 18.00 + 1.50 = B$33.61
At B$18 each: revenue = 10 × 18 = B$180. Total cost = 10 × 33.61 = B$336.10. Loss = B$156.10.
Even ignoring her time, materials plus stall fee are B$15.61 per apron, already above the B$18 price once any other overhead is counted - so B$18 barely covers materials and leaves nothing for labour.
2. Recommend a selling price and explain two ways she could reduce the cost per apron without lowering quality.
Read the worked answer
Recommended price. To make a reasonable margin, price at least at true cost plus a profit margin. If she wants a 30% margin on the B$33.61 true cost, price at 33.61 × 1.30 ≈ B$43.70, so round to B$45. At B$45, ten sales give B$450 revenue against B$336.10 cost, a profit of B$113.90. If the market will not bear B$45, she must cut costs or accept a lower wage for her time - but she should decide that knowingly, not by accident.
Two cost reductions that protect quality:
- Buy fabric more efficiently. Her 10% waste allowance is generous for a simple rectangular apron. Careful layout on the 8 m length, cutting pattern pieces side by side and using offcuts for pockets or ties, could reduce waste to around 5%, saving roughly B$0.60 per apron on canvas and contrast. Buying a full bolt or sharing an order with classmates could also lower the per-metre price.
- Reduce labour time without reducing quality. Three hours per apron is high for a simple apron. Batching - cutting all ten at once, then chain-sewing the hems and ties - typically cuts handling time substantially. If she reaches 2 hours per apron, labour falls from B$18 to B$12, dropping true cost to about B$27.60 and allowing a competitive price near B$36 with a healthy margin.
She should record both the original costing and the revised one in her portfolio, with the reasoning for each change.