Here is the computation to find a price quote using markup:(Desired Markup x Total Variable Costs) + Total Variable Costs = Price QuoteLet's use ABC Clothing as an example. ABC has been asked to quote on a job to produce 100 shirts. Based on prior experience, the owner estimates the job will require 100 labor hours of direct labor and five hours of supervision from the plant manager. The total material costs based on quotes from suppliers will be $40 per dozen. If ABC Clothing seeks a markup of 42.9 percent on all orders, it would use a markup table (like the one below) to calculate the price quote.
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