Budget amounts are calculated from percentages for individual family members. Principles for saving are introduced, and discounts and multiple discounts are calculated on list prices. Online purchasing is discussed, mock online order forms are completed (with shipping costs included), and the cost of online purchases is compared to the cost of comparable items purchased from a department store to determine the savings.The cost of buying material and notions for making clothes is compared to the retail cost of a comparable item. Such items as profit, net sales, and gross profit margin are examined from the manufacturer’s viewpoint, and recommended selling prices are calculated. Such items as wholesale price, markup, and profit are calculated from the retailer’s viewpoint, and the breakeven point is found.
After this chapter you should be able to
1. prepare a budget for clothing based on a given income.
2. calculate discounts, double discounts, and sale prices.
3. determine the cost of online purchases, including shipping and handling.
4. calculate the cost of making a garment and determine if there are savings over a similar store-bought garment.
5. find the net profit, figure the gross profit margin, and determine a reasonable selling price for a product.
6. determine the markup based on cost.
7. identify the breakeven point.
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