The following was revised after Mary Lou pointed out that I had used the cost for the wrong item to do the calculations the first time. Apparently my company lost money on this deal.
Cost of Goods
- Vendor cost per unit: $6.27
- Shipping (34%): $2.13
- Total cost per unit: $8.40
- Total cost 40 units: $336.07
- Here is the invoice from the vendor
- Total sale price: $400.00
- Here is the invoice to the customer
- Delivery: (60 mile round trip from Agat) 2 hours and $10 gas.
- Normal overhead (supplies, handling, picking up items from post office, verifying order) 10% or $6.39
- GRT (4%) on gross sales: $16.00
- Total time involved (research, order, pickup, order verification, boxing, invoicing, delivery) 4 hours
- 4 hours at $8.25 (minimum wage): $33.00
- Total overhead: $65.39
Net loss: -$1.47