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.
If you are installing on a diagonal you need to allow at least 15 percent waste. Square footage is measured as length multiplied by width. Thus, a 10' x 12' room would measure 120 square feet (10 x 12 = 120). Then, simply add in the waste factor. Let's say your room requires 120 square feet.If the waste factor is 10%, then you would need 132 square feet.quare footage is measured as length multiplied by width. Thus, a 10' x 12' room would measure 120 square feet (10 x 12 = 120). Then, simply add in the waste factor. Let's say your room requires 120 square feet.