Posted by sylvana on November 12, 2002 at 13:31:02:
now i have a question in regards to adding in overhead into the cost equation. i have read that it should be 33.3%. If you work out of an inhome studio all of the rent, heat, electric, insurance, etc are included in my monthly bills anyway. I know i should add in some overhead but if the cost of my materials for my products are 3.00 i am not really sure if my overhead is really 1 dollar for each item. I have been just adding 20 cents. if this correct or should it be more or less. I am using the equation of
direct costs + labor + overhead = wholesale them i am adding 100% for retail to add in my profit margin.
does this seem accurate.