1. Problem 1
MATERIAL COST: Your material cost is $10 and you have 1 yd2. Your item is 3in x 4in when flat. Calculate the following costs:
Material cost per item
How many products will fit on the material:
LABOR COST: Your employee works 8 hour days and makes $10 per hour. He can produce 1 item in 5 minutes.
How much do we pay per item in labor?  
OVERHEAD COST: The factory cost is $ per year and they produce products per year.
What is the overhead cost per item?
TOTAL PRODUCTION COST:
How much is the total production cost?
WHOLESALE COST:
With a 25% markup calculate the wholesale cost per item
PACKAGING AND SHIPPING: Assume your item measures 3” X 3” X .5” with the packaging and is going to be placed in a 10” x 10” x 10” box. Shipping costs are $50 per case.
What is the volume of the item
What is the volume of the shipping box
How many items will fit in the box
How much does one case cost
How much is one case with shipping
What is the retail store’s cost for each item with shipping.
RETAIL COST: The retail store marks up the item 50%.
What is the final retail price

2. Problem 1 Answer Material cost per item = $.10
How many products will fit on the material: 108
How much do we pay per item in labor? $.84 
What is the overhead cost per item? $.20
How much is the total production cost? $1.14
With a 25% markup calculate the wholesale cost per item = $1.43
What is the volume of the item = 4.5
What is the volume of the shipping box = 1000
How many items will fit in the box = 222
How much does one case cost = $317.46
How much is one case with shipping = $367.46
What is the retail store’s cost for each item with shipping. = $1.66
What is the final retail price = $2.49

3. Problem 2
MATERIAL COST: Your material cost is $25 and you have 1 yd2. Your item is 5in x 5in when flat. Calculate the following costs:
Material cost per item
How many products will fit on the material:
LABOR COST: Your employee works 8 hour days and makes $20 per hour. He can produce 1 item in 10 minutes.
How much do we pay per item in labor?  
OVERHEAD COST: The factory cost is $ per year and they produce products per year.
What is the overhead cost per item?
TOTAL PRODUCTION COST:
How much is the total production cost?
WHOLESALE COST:
With a 25% markup calculate the wholesale cost per item
PACKAGING AND SHIPPING: Assume your item measures 5” X 5” X 1” with the packaging and is going to be placed in a 10” x 10” x 10” box. Shipping costs are $50 per case.
What is the volume of the item
What is the volume of the shipping box
How many items will fit in the box
How much does one case cost
How much is one case with shipping
What is the retail store’s cost for each item with shipping.
RETAIL COST: The retail store marks up the item 50%.
What is the final retail price

4. Problem 2 Answer What is the volume of the item 25
Material cost per item = $.50
How many products will fit on the material: 51
How much do we pay per item in labor?  $3.34
What is the overhead cost per item? $.20
How much is the total production cost? $4.04
With a 25% markup calculate the wholesale cost per item = $5.05
What is the volume of the item 25
What is the volume of the shipping box = 1000
How many items will fit in the box = 40
How much does one case cost = $202.00
How much is one case with shipping $252.00
What is the retail store’s cost for each item with shipping. $6.30
What is the final retail price = $9.45

5. Problem 3
MATERIAL COST: Your material cost is $50 per yard and you have 2 yd2. Your item is 2in x 2in when flat. Calculate the following costs:
Material cost per item
How many products will fit on the material:
LABOR COST: Your employee works 8 hour days and makes $30 per hour. He can produce 1 item in 2 1/2 minutes.
How much do we pay per item in labor?  
OVERHEAD COST: The factory cost is $ per year and they produce products per year.
What is the overhead cost per item?
TOTAL PRODUCTION COST:
How much is the total production cost?
WHOLESALE COST:
With a 10% markup calculate the wholesale cost per item
PACKAGING AND SHIPPING: Assume your item measures 2” X 2” X 1” with the packaging and is going to be placed in a 10” x 10” x 10” box. Shipping costs are $30 per case.
What is the volume of the item
What is the volume of the shipping box
How many items will fit in the box
How much does one case cost
How much is one case with shipping
What is the retail store’s cost for each item with shipping.
RETAIL COST: The retail store marks up the item 50%.
What is the final retail price

6. Problem 3 Answer Material cost per item = $.16
How many products will fit on the material = 324
How much do we pay per item in labor?  = $1.25
What is the overhead cost per item? = $.20
How much is the total production cost? = $1.61
With a 10% markup calculate the wholesale cost per item = $1.78
What is the volume of the item = 4
What is the volume of the shipping box = 1000
How many items will fit in the box = 250
How much does one case cost= $445
How much is one case with shipping = $475
What is the retail store’s cost for each item with shipping. = $1.90
What is the final retail price = $2.85