CM Calculation: Machine Cost vs Minute Cost

CM ("cut and make") is the cost of turning fabric into a garment, derived from factory overhead other than materials, value-added work, and logistics. There are two ways to calculate it: a quick average machine-cost method and the more scientific cost-per-minute method. Both should land on the same number; here they're worked to $18/dozen.

The key idea: cost per minute

Cost per minute (CPM), also called earning per minute (EPM), is the value each machine-minute of production must earn. It bundles production overhead plus indirect and direct labour, with some profit. It's the scientific basis for CM because it ties cost to the actual time a garment takes (its SMV), not a rough machine average.