burden rate Hi folks, I am retooling an existing screen printing and embroidery business. We have a reasonable amount of volume but we are not profitable. I wondered if there were any simple formulas to calculate burden rate? I have a years worth of financial statements for information. To keep things simple we have our garment costs, add our burden rate (overhead), then we add on profit. we have grown about 20% this year and our screen printing volume is around 1.2 million. I have seen threads that talk about if 1 gallon if ink costs "x" and the screen costs "y"... but it seems to me, much of my overhead is all ready captured on my income statement. We are in a very competitive environment (who isn't) and it seems like every dime added to in price becomes an issue. Couple that with my salesman gets paid based on the profit of a job, (margin added to the cost of goods plus burden rate)
Sorry for the long question but any sage advice wil be appreciate.
Thanks |