Sales Pricing of Assemblies

We quote assemblies according to a formula:

$MC = Cost of Major Components

$mc = Cost of Minor Components = 10% of $MC (we don’t itemize screws, bolts, nuts etc)

$Lbr=Cost of Labor (usually hourly Labor rate x estimated hours)

$OH = 12% ($MC +$mc $Lbr)

%GM= Gross Margin %

SP=Sales Price


SP=($MC + $mc +$Lbr +$OH)/(1-%GM)


for example

$MC = $1,000

$mc = 10% of $1000= $100

$Lbr=2 Hours at $50 = $100

$OH = 12% ($1200)=$144

Subtotal of above = $1344.00

%GM=35 %

SP=$1344/(1-.35) = $1344/(.65) = $2067.69


We have about a 30% close rate on quotations, so we don’t want to have to create an assembly everytime we quote something.


What I would like to have is a quotation form that would let our sales people quote the assembly and show them the Subtotal of Cost, the Gross Margin, and sales price.


Is there an easy way to do this?


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