Feasibility (Profit and Loss) Study of a Garments order

Feasibility (Profit and Loss) Study of a Garments order

A feasibility study provides valuable information to take “go/no-go” and alternative decisions. To do a feasibility study in the garments industry, one must create a projected income statement based on the last 3-month expense. And the projected income statement will show how much money our orders are expected to make in the coming year. It will include both our estimated revenue and our estimated expenses. This document will be essential in helping you make informed decisions about your garment business. Feasibility (Profit and Loss) Study of a Garments order.

Technical Feasibility: This assessment focuses on the technical resources available to the organization ..

1. Economic Feasibility. …
2. Set up Feasibility. …
3. Operational cost Feasibility. …
   0r. Scheduling Feasibility

Garments Order Analysis

Before taking a garments purchase order, the garments supplier does all the analysis of their cost. Among them are production costs, machinery costs, and all other costs and calculations described here below. Hope you will get a clear idea of the Feasibility (Profit and Loss) Study of a Garments order.

No.	Particulars	Unit	For example,
1	Total Quantity For Related Style	Pcs.	20000
2	No. of Machine Required Per Line	No.	38
3	Anticipated Production Per Hour	Pcs.	110
4	Total Working Hours In a Day	Hrs.	10
5	Average Production Per Day	Pcs.	1100
6	Total Working Days in Month	Days	26
7	Total Production Cost Per Machine Per Month	Tk.	45000
8	Per Day Machine Cost	Tk.	1731
9	SMV Cost Per Minute In Tk.	Tk.	2.88
10	SMV Cost Per Minute In Dollar	USD	0.04
11	Per Day Line Cost Based On The  No. of Machine Used	Tk.	65769
12	Set Up Time For The Concern Style	Days	1
13	Set Up Time Cost For The Concern Style Based On No. of Machine Used  & Required Days	Tk.	66965
14	Total Production Days Required For The Concern Style Including Set Up Time	Days	19.20
15	Total Production Cost Incurred For This Style	Tk.	1262769
16	Per Piece Projected Unit Cost	Tk.	63.14
17	Production Cost In USD Per Pcs	Dollar	$       0.77
18	Production Cost In  USD Per DZ	Dollar	$       9.24
19	Projected CM In USD Per DZ	Dollar
20	Anticipated Profit & Loss In DZ For This Style	Dollar

Days	Production / Day	Set-up Loss hour	Utilized hour
1st	450	5.9	4.1
2nd	750	3.2	6.8
3rd	980	1.1	8.9
4th	1100	0.0	10.0
5th	1100	0.0	10.0
6th	1100	0.0	10.0
Total	5480	10.2	49.8
Anticipated Set-up day	1.02

Ref: Project feasibility study