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.ParticularsUnitFor example,
1Total Quantity For Related StylePcs.20000
2No. of Machine Required Per LineNo.38
3Anticipated Production Per HourPcs.110
4Total Working Hours In a DayHrs.10
5Average Production Per DayPcs.1100
6Total Working Days in MonthDays26
7Total Production Cost Per Machine Per MonthTk.45000
8Per Day Machine CostTk.1731
9SMV Cost Per Minute In Tk.Tk.2.88
10SMV Cost Per Minute In DollarUSD0.04
11Per Day Line Cost Based On The  No. of Machine UsedTk.65769
12Set Up Time For The Concern StyleDays1
13Set Up Time Cost For The Concern Style Based On No. of Machine Used  & Required DaysTk.66965
14Total Production Days Required For The Concern Style Including Set Up TimeDays19.20
15Total Production Cost Incurred For This StyleTk.1262769
16Per Piece Projected Unit CostTk.63.14
17Production Cost In USD Per PcsDollar $       0.77
18Production Cost In  USD Per DZDollar $       9.24
19Projected CM In USD Per DZDollar 
20Anticipated Profit & Loss In DZ For This StyleDollar 
*Tk. (Taka) is the currency of Bangladesh.
Feasibility (Profit and Loss) Study of a Garments order

Production / DaySet-up Loss hourUtilized hour
Anticipated Set-up day1.02

Ref: Project feasibility study

Feasibility (Profit and Loss) Study of a Garments order

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