How to best calculate my cost of mixing 2 different items into 1 bag for re-sell

[elevenfourtyfour]

Hello, I have been approached to produce a product for a client of mine.

• Basically, they want me to take 2 different sizes of lobster tails (3oz and 4oz) and put each size into 1 new package to sell to their customers.
• The 3oz and 4oz come in separate boxes, each box is 40lbs. There is not exactly 40lbs of fish per case because each is a variable weight... (since not all are identical in size by nature..) so usually it is 41-42lbs per case (guaranteed to be at LEAST 40lbs).
• I want to take a single 3oz and a single 4oz , and put it together into 1 bag to re-sell, and would figure out my cost for this.

• The 3oz costs $15.00/lbs. A whole case of 3oz costs $600.00
• The 4oz costs $17.00/lbs. A whole case of 4oz costs $680.00

When I open a case of 3oz lobster tails, there is aprox 228 in it.
When I open a case of 4oz lobster tails, there is aprox 184 in it.

• The labor and material cost to put each fish into 1 new package costs 0.95cents per package.
  

Would this be correct?

• 3oz average price per : $600 / 228 = $2.63 per 3oz (average).
• 4ox average price per : $680 / 184 = $3.69 per 4oz (average).
• $2.63 + $3.69 + $0.95 = $7.27/unit (my cost).

Am I missing something or would this be pretty close?

Thank you!!

 

[Deleted member 4993]

Hello, I have been approached to produce a product for a client of mine.

• Basically, they want me to take 2 different sizes of lobster tails (3oz and 4oz) and put each size into 1 new package to sell to their customers.
• The 3oz and 4oz come in separate boxes, each box is 40lbs. There is not exactly 40lbs of fish per case because each is a variable weight... (since not all are identical in size by nature..) so usually it is 41-42lbs per case (guaranteed to be at LEAST 40lbs).
• I want to take a single 3oz and a single 4oz , and put it together into 1 bag to re-sell, and would figure out my cost for this.

• The 3oz costs $15.00/lbs. A whole case of 3oz costs $600.00
• The 4oz costs $17.00/lbs. A whole case of 4oz costs $680.00

When I open a case of 3oz lobster tails, there is aprox 228 in it.
When I open a case of 4oz lobster tails, there is aprox 184 in it.

• The labor and material cost to put each fish into 1 new package costs 0.95cents per package.
  

Would this be correct?

• 3oz average price per : $600 / 228 = $2.63 per 3oz (average).
• 4ox average price per : $680 / 184 = $3.69 per 4oz (average).
• $2.63 + $3.69 + $0.95 = $7.27/unit (my cost).

Am I missing something or would this be pretty close?

Thank you!!

You do realize that 46 boxes of 3 oz tails and 57 boxes of 4 oz. tail will make 10488 pairs - without any appreciable waste. So you will need a large freezer for inventory. I am assuming 95¢ will cover your shipping+handling+ freezing costs!!

 

[elevenfourtyfour]

You do realize that 46 boxes of 3 oz tails and 57 boxes of 4 oz. tail will make 10488 pairs - without any appreciable waste. So you will need a large freezer for inventory. I am assuming 95¢ will cover your shipping+handling+ freezing costs!!

200,000sqft~freezer

 

[mmm4444bot]

When I open a case of 3oz lobster tails, there is aprox 228 in it.

When I open a case of 4oz lobster tails, there is aprox 184 in it.

Did you arrive at the 228- and 184-counts yourself, by averaging several cases each?

If you can rely on these average counts per case, then your unit-cost calculation is okay.

I note that 184 four-ounce tails weigh 46 pounds. At $17/lb, a 46-pound case would be $782 (but you're paying $102 less).

If an average case weighs closer to 40 pounds, then a number of your four-ounce tails must be underweight. I would not want your client to wonder whether you're putting your thumb on the scale.

228 three-ounce tails weigh 42.75 pounds (worth $641.25). Similar situation, but 42.75 is a lot closer to your 41-42 range than 46 is. :cool: