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Prime Cost = Raw Materials + Direct Labor. The prime cost of a single bed frame is ($6,500 + $750) / 10, or $72.50. In order to generate a profit, the company must sell each frame for more than $72.50.
Calculate the payment amount. You can calculate the minimum rental amount by using the present value formula in spreadsheet software or a financial calculator. The formula asks for certain inputs. In this case your interest rate is 9 percent divided by 12 (.09/12).