Costing and Production Planning for 40 School Uniforms in Bafoussam
You run a small tailoring workshop in Bafoussam with two sewing machines. A secondary school orders 40 uniforms. Each uniform needs 2.20 m of fabric from a 150 cm wide bolt. The supplier sells only full 30 m bolts at 2,500 FCFA per metre. The fabric shrinks 5% after the first wash, and you expect 8% cutting waste. One bolt in stock has a stained section 1.2 m long that cannot be used. Your overlock machine needs a 15,000 FCFA repair before production. Labour is 1,500 FCFA per uniform; thread and buttons cost 500 FCFA per uniform; transport is 10,000 FCFA. The school will pay a 30% deposit and the balance on delivery in 10 days. You have 120,000 FCFA cash. A competitor offers 12,000 FCFA per uniform.
1. Calculate the fabric required including shrinkage and cutting waste, the number of bolts to buy, and the fabric cost.
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Base fabric for 40 uniforms is 40 × 2.20 m = 88 m. The fabric shrinks 5%, so I need extra length: 88 × 1.05 = 92.4 m. Cutting waste is 8%, so 92.4 × 1.08 = 99.79 m, which rounds up to 100 m of usable fabric. The supplier sells only full 30 m bolts, so 3 bolts give 90 m, which is not enough. Four bolts give 120 m. One bolt has a 1.2 m stained section, so usable fabric is 120 − 1.2 = 118.8 m, still above the 100 m needed. The fabric cost is 4 × 30 m × 2,500 FCFA/m = 300,000 FCFA. I would mark the stained section before cutting and keep it out of the layout. Buying four bolts is therefore the minimum practical purchase, and it leaves about 18.8 m of usable surplus for repairs or future orders.
2. Calculate the total cost, the cost per uniform, and a minimum selling price that gives 20% profit. Compare this with the competitor's price.
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Fabric is 300,000 FCFA. Labour is 40 × 1,500 = 60,000 FCFA. Thread and buttons are 40 × 500 = 20,000 FCFA. The overlock repair is 15,000 FCFA and transport is 10,000 FCFA. Total cost = 300,000 + 60,000 + 20,000 + 15,000 + 10,000 = 405,000 FCFA. Cost per uniform = 405,000 ÷ 40 = 10,125 FCFA. A 20% profit on cost is 10,125 × 1.20 = 12,150 FCFA per uniform. The competitor's price is 12,000 FCFA, which is below my 20%-profit price but still above my cost. At 12,000 FCFA, total revenue would be 480,000 FCFA and profit would be 75,000 FCFA, or about 18.5% on cost. I could match 12,000 FCFA if I reduce waste or negotiate the fabric price, but I should not quote below 10,125 FCFA because that would make a loss before any unexpected cost.
3. The school asks for delivery in 10 days. With one machine needing repair and limited cash, propose a production and cash-flow plan.
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I would repair the overlock machine first because production cannot run smoothly without it; the 15,000 FCFA repair is small compared with the order. With the 30% deposit, the cash position depends on the contract price. If I quote 12,500 FCFA per uniform, the contract is 500,000 FCFA and the deposit is 150,000 FCFA. With my 120,000 FCFA cash, that gives 270,000 FCFA, which is 30,000 FCFA short of the 300,000 FCFA fabric cost. I would ask the supplier for short credit or ask the school for a 40% deposit; I would not spend the deposit on unrelated costs. Production-wise, 40 uniforms in 10 working days is 4 per day. With two machines and one repair, that is feasible if I cut in batches of 10, sew in a logical sequence, and leave time for pressing and final inspection. I would confirm the delivery date in writing and keep a small contingency for thread and transport.