Unit of competency Outline

Date retreived
22/07/2026 11:28 AM AWST

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Determine retail rates for work

Determine retail rates for work

Unit of competency
National Code
AURA454516A
State Code
W2800
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
07/04/2011
View on TGA
State Implementation and Classification
Approved Date
16/01/2006
Field of Education
010101 - Mathematics
Original Release Date
16/01/2006
Nominal Hours
32
Description
This unit of competency covers the competence to calculate fixed and variable costs to determine retail rates for jobs performed. It also involves calculating the effects of discount on overall profitability.
Notes
Elements and Performance Criteria
1. Determine fixed costs
  • 1.1. Identify components of fixed costs
  • 1.2. Use historical records and business knowledge to estimate fixed costs for next period
  • 1.3. Calculate administrative and business operation overhead costs
  • 1.4. Allocate proportion of fixed cost to be included in labour rate
2. Determine labour rate
  • 2.1. Identify cost components of labour rate
  • 2.2. Using historical records identify average chargeable hours of each category of staff
  • 2.3. Calculate subcontractor cost component of jobs
  • 2.4. Calculate applicable hourly retail rate for labour, including provision for fixed costs
3. Determine variable cost
  • 3.1. Identify components of variable cost for job
  • 3.2. Estimate and record materials required for the job
  • 3.3. Use accounting records and details of job undertaken to calculate variable cost
4. Determine retail price of goods for resale
  • 4.1. Research local market price for items
  • 4.2. Estimate turnover volume of items
  • 4.3. Calculate margins and mark-ups for each category of goods
  • 4.4. Calculate effect of various discounts, loss leaders and specials on items based on retail price, volume and overall business flow-on
  • 4.5. Calculate effect of high pricing strategy on some items
  • 4.6. Monitor effects of price changes on business levels and profitability
Calculation will include:
overheads may be calculated for a specific job or be a constant component based on historical records and projections
overheads will include accommodation costs, utilities, depreciation, insurance, licence and other business charges
labour costs will include on-costs, such as leave provision, superannuation, training and workers' compensation
chargeable hours/productive hours based on total hours worked less acknowledged non-chargeable hours

Work requirements may include:
written and verbal communication
sourcing and costing parts and consumables
estimating costs
documentation
specific requirements

External service providers may be:
other departments
specialist businesses

Resources may include:
enterprise stationery, telephone and appropriate forms/business documents
repair order and job cards
component price lists
accounting records
purchasing records
computer, calculator and software
standard repair times

Sources of information/documents may include:
manufacturer/component supplier specifications
enterprise operating procedures
customer requirements
state/territory/industry OHS legislation
industry/workplace codes of practice

Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Calculate cost for a range of retail service and repair jobs, including fixed, variable and component pricing.
Determine effect of price changes on overall business profitability.
Gathering cost estimates from external service providers and documenting quotations.

Context of and specific resources for assessment
Accounts payable and cash disbursement records, payroll records, equipment cost and asset register, pricing impact charts, stock turnover records, calculator or computer.

Method of assessment

Practical assessments:

determine hourly charge-out rate for classes of labour using proportion of fixed, variable and labour cost
determine on-cost for parts and components
determine effect of change in price on business profitability.

Guidance information for assessment
Replaced By
State Code National Code Title Type
WF002 AURAAA4002 Determine retail rates for work Unit of competency