The cost for board footage is calculated by dividing the total cost by the total board footage and then adding a waste allowance percentage to account for material loss during processing.
The formula for calculating the cost for board footage is given by:
\[ \text{Cost per Board Footage} = \left( \frac{\text{Total Cost}}{\text{Total Board Footage}} \right) \times \left( 1 + \frac{\text{Waste Allowance}}{100} \right) \]
where:
Let's assume the following values:
Using the formula:
\[ \text{Cost per Board Footage} = \left( \frac{1000}{500} \right) \times \left( 1 + \frac{10}{100} \right) \]
Calculating step-by-step:
\[ \frac{1000}{500} = 2 \]
\[ 1 + \frac{10}{100} = 1.1 \]
\[ \text{Cost per Board Footage} = 2 \times 1.1 = 2.2 \]
The calculated cost per board footage (including waste allowance) is $2.20 per bf.
