How to Calculate the Prime Cost. For example, the prime costs for creating a table would include raw materials such as the lumber, hardware and paint. For all of the materials, it would cost $200. In this example, it would take three hours to finish the product for sale, and would cost $50 per hour. To find the prime cost of the table, it would then look like this: $200 (Raw Material) + $150 (Direct Labor) = $350 (Prime Cost) Knowing that the prime cost is $350 means that the business cannot sell the table for under $350 unless they wish to incur a loss.
Noleppa and Cartsberg, in their 2013 working paper Agricultural Self-sufficiency of the European Union: Statistical Evidence comment that âThe information base on the EUâs agricultural self-sufficiency is very weakâ.
Until the fifteenth century, the economy of Western Europe depended upon agriculture. The system of feudalism dictated that wealthy families of lords rule certain territories. The peasant farmer, who made up most of the region's population, worked for the lords in exchange for crops and other items of sustenance. Advancements in farming technology had helped Europe recover from the devastating famine and diseases of the Middle Ages and allowed the population to grow to three times its size. With the support of the wealthy classes, monarchies capitalized on the growing commerce.