Shoe Maker Interview Question:

What is LOP or Labor Overhead and Profit?

Submitted by: Muhammad

LOP is a critical part of the shoe factories price for a shoe. The factory will add up all the material costs then add the Labor Rate , Overhead and Profit required. The LOP for a shoe can be 30% of the total cost of a shoe. Just a few dollars for a simple skate shoe up to $10 or $15 for a snowboarding boot. Some factories will add a percentage on to the material cost to account for the LOP. Other factories carefully calculate each component.
Submitted by: Muhammad