Fashion Factory Lab Worksheet
FF
Fashion Factory Investigation Lab
Week 4 • Day 2 | Reverse Engineering a Garment
Lab Dossier
Name:
Period:
Date:
MISSION Inspect a garment without damaging it, build an estimated bill of materials, and calculate production, wholesale, and retail prices. Work with your team; complete your own sheet.
STEP 1
Garment Investigation (5 minutes)
5 Mins
Garment type / description:
Fabric or fiber content (check care label if available):
Check features you observe:
seams collar pockets zipper buttons drawstring print lining other
List two construction details and explain how they could affect manufacturing cost:
STEP 2
Build Your Bill of Materials (10 minutes)
10 Mins
Use the fictional classroom cost menu below. Select only the components needed for ONE garment. Choose one fabric and one labor option; do not double-count alternatives.
Basic cotton fabric: $3.50
Heavyweight/premium fabric: $6.00
Thread / sewing supplies: $0.40
Care label: $0.35
Basic sewing labor: $2.50
Complex sewing labor: $4.50
Printed graphic: $1.75
Zipper: $1.25
Drawstring: $0.60
Packaging: $0.50
Factory overhead allocation: $1.25
Other approved component: Teacher sets cost
Record the costs you select (including packaging and overhead):
| Selected component / service |
Reason needed |
Cost ($) |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
| TOTAL PRODUCTION COST: |
$ |
|
Fashion Factory Investigation Lab • Student Worksheet Page 1 of 3
PRICING LAB • CALCULATIONS
Markup Ratios • Keystone Pricing • Factory Shocks
Step 3 • Step 4
Name:
Garment:
STEP 3
Calculate Your Prices (8 minutes)
Show your work • Round final money amounts to the nearest cent
A. Production cost = sum of selected manufacturing expenses
Production cost: $
Calculation:
B. Wholesale price = production cost × 1.50 (50% markup ON COST)
Wholesale price: $
Calculation:
C. Suggested retail price = wholesale price × 2 (keystone pricing)
Retail price: $
Calculation:
D. Retailer dollar markup per garment = retail price − wholesale price
Retailer dollar markup: $
Calculation:
Would your retail price make sense for this garment and its intended customer? Explain.
STEP 4
Factory Surprise! (5 minutes)
5 Mins
Surprise assigned:
What expense changed, and by how much?
| Revised price calculation |
Show your work |
New price |
| Production cost |
|
$ |
| Wholesale price (× 1.50) |
|
$ |
| Retail price (× 2) |
|
$ |
Would you keep the new price or change your manufacturing choices? Why?
Fashion Factory Investigation Lab • Student Worksheet Page 2 of 3
MY RETAIL BUSINESS • REFLECTION
Store Connection • Commercial Synthesis • Margin vs. Profit
Step 5 • Synthesis
Name:
Store name:
STEP 5
Apply It to Your Store (3 minutes)
3 Mins
Choose ONE product from the retail business you have been developing in class.
Product:
1. What materials or components would be needed to make it?
2. What is one feature or production decision that could increase its cost?
3. How might the production cost influence what your customers pay?
FINAL REFLECTION
Why must a clothing item’s retail price generally be higher than its production cost? Include at least TWO other expenses or business considerations in your explanation. Remember: markup is not the same as net profit.
BEFORE YOU TURN IT IN
Garment inspection Bill of materials Pricing calculations Factory Surprise Store connection Reflection
Teacher note: All cost figures and markup assumptions are fictional instructional examples, not verified industry costs.
Fashion Factory Investigation Lab • Student Worksheet Page 3 of 3
Garment Costing Teacher Guide
Garment Costing Lab • Teacher Guide
Unit Economics • Lesson Facilitation • Supply Chain Scenarios
Educator Resource
Estimated Time: 45–50 Mins
Core Instructional Objectives
- Reverse-engineer real-world garments to catalog structural bill of materials (BOM).
- Apply sequential cost-plus pricing: Production Cost → Wholesale (+50%) → Keystone Retail (2×).
- Analyze supply chain cost shocks and differentiate gross markup from net business profit.
Physical Lab Materials
Provide 1 sample garment per team (hoodies, graphic tees, denim jeans, athletic jackets). Encourage students to check care labels, interior seams, zippers, and trims.
Lesson Flow & Facilitation Protocol (45 Minutes)
01 Launch 5 min
Introduce the "garment autopsy." Challenge teams to identify every cost driver before pricing.
02 Spec & BOM 15 min
Teams catalog fabric, trims, and labor tier. Remind: select only 1 fabric and 1 labor option.
03 Price Ladder 8 min
Walk through production → wholesale (1.50×) → keystone retail (2×) calculations.
04 Surprise! 7 min
Distribute 1 Surprise Card per team. Teams recalculate and debate pricing vs redesign strategy.
05 Debrief 10 min
Synthesize markup vs profit. Connect to classroom retail venture and student product lines.
Printable Factory Surprise Cards (Assign 1 Per Student or Table)
6 Ready-to-Use Scenarios
Scenario Alpha +$1.20
Tariff & Freight Spike
Overseas ocean shipping rates surged. Factory overhead allocation increases by +$1.20 per unit.
Impact: New Base = BOM + $1.20
Scenario Beta +$1.50
Organic Cotton Mandate
Customer demand forces switch to certified organic ring-spun cotton. Fabric cost increases by +$1.50 per unit.
Impact: Fabric cost + $1.50
Scenario Gamma +$1.00
Rush Labor Overtime
Production deadline moved forward 2 weeks; workers required overtime. Sewing labor cost increases by +$1.00.
Impact: Labor tier + $1.00
Scenario Delta -$0.75
Bulk Fabric Volume
Your brand doubled its order quantity from the textile mill, triggering a volume discount of -$0.75 on fabric.
Impact: Production cost - $0.75
Scenario Epsilon +$0.85
Eco-Packaging Upgrade
Plastic polybag replaced with 100% compostable cornstarch mailer and cotton drawstring. Packaging cost rises by +$0.85.
Impact: Packaging + $0.85
Scenario Zeta +$0.90
Defective Zipper Recall
Hardware vendor sent faulty pullers. Sourcing premium YKK metal zippers increases hardware cost by +$0.90 per garment.
Impact: Zipper expense + $0.90
Garment Costing Lab • Teacher Implementation Guide Page 1 of 2
Benchmark Key • Master Calculations
Exemplar Solutions • Formula Ladder • Pedagogical Coaching
Answer Key
Sample Exemplar: Graphic Pullover Hoodie
Standard Benchmark Model
Step 2 Exemplar Bill of Materials:
Step 3 Pricing Ladder Calculations:
A. Production Cost $15.35
Sum of BOM entries
B. Wholesale Price (1.50×) $23.03
\( \$15.35 \times 1.50 = \$23.025 \approx \$23.03 \)
C. Suggested Retail (2× Keystone) $46.06
\( \$23.03 \times 2 = \$46.06 \) (or \( \$23.025 \times 2 = \$46.05 \))
D. Retailer Dollar Margin $23.03
\( \$46.06 - \$23.03 = \$23.03 \) (50% retail margin)
Note: Minor cent rounding differences (±$0.01) based on rounding wholesale before keystone are fully acceptable.
Common Misconceptions & Strategic Coaching
Misconception: "Markup = Pure Profit"
Students assume the $23.03 retailer markup goes directly into the owner's pocket. Emphasize that gross markup pays for brick-and-mortar rent, employee wages, merchant processing fees, advertising, utilities, and unsold inventory markdowns. Net profit is typically only 4%–10%!
Double-Counting Alternatives
Students often add both "Basic cotton" AND "Heavyweight fabric," or both "Basic labor" AND "Complex labor." Reiterate that each garment has one fabric base and one labor classification.
Keystone Multiplier Foundation
Explain that "Keystone Pricing" is traditional retail shorthand for doubling wholesale cost (\(2\times\)), providing a standard 50% gross margin on retail price to cushion against clearance sales.
Compounding Price Shocks
Notice how a +$1.00 increase at the factory turns into +$1.50 at wholesale and +$3.00 at retail! This demonstrates why apparel brands obsess over fractions of a cent.
Differentiation & Extension Options
Scaffolding (Tier 1 Support): Provide students with pre-calculated sample basic tees ($8.10 production cost) or provide a handheld calculator / arithmetic support sheet. Allow paired calculations with designated roles (Inspector and Comptroller).
Advanced Extension (Business Honors): Have advanced students calculate the break-even unit volume needed to pay for a $15,000 retail store lease using their calculated dollar margin per garment, or simulate landed duty tariffs.
Garment Costing Lab • Teacher Implementation Guide Page 2 of 2