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.
Do the math. You probably know how to calculate the square footage of a simple room without any funny shapes. Just break out your measuring tapeâor a laser measureâto get its length and width. Multiply the width by the length and voila! You have the square footage. Say a room is 20 feet wide by 13 feet long, then 20 x 13 = 260 square feet. How to calculate square feet.
Whether a house is 300 square feet or 3,000 square feet, how you intend to use the house will dictate what systems and materials should be inside, and how much you might need or want to spend on them.