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.
For example, a room, or section of a room, that is 20 feet long and 12 feet wide produces this formula: 20 x 12 = 240 square feet. If the flooring you are purchasing is sold by the yard, divide the square feet by 9. So, 240 square feet / 9 = 26.667 square yards.