overhead


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Posted by sylvana on November 12, 2002 at 13:31:02:

Hi Again

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.

thanks


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