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.
MEASURING AREAS. Before you can figure out how much material you require, you will need to calculate square foot measurements (or meters) of the surface area that is being covered. A floor or ceiling can be easy to figure out. Just multiply length times width. As an example, if your living-room is 15 feet long by 20 feet wide the calculation would be 15' x 20' = 300 sq ft of floor or ceiling area. Walls can be a little more difficult to measure, especially, when you're considering decorating an entire room.