FEASIBILITY STUDY

STATIONARY VENDING MACHINE

INDIAN ELECTRICALS LIMITED
PARTICULARS INDIA (RS.) LONDON (RS.) INDIA () LONDON ()
Tooling 579145.00 224250.00 44549.62 17250.00
FIXED COST

Equipment for assembly shop 24000.00 0.00 1846,16 0.00

Equipment for storage and handling 15000.00 0.00 1153.85 0.00

Subtotal 618145.00 224250.00 45703.47 17250.00

Material Cost 14577.50 0.00 1121.35 0.00 58.31

VARIABLE COST (250 UNITS)

Labour 16827.50 0.00 1294.42 0.00 67.31

Other overheads 6325.00 0.00 486.54 0.00 25.30
Plating 23062.50 0.00 1774.04 0.00 92.25
Depreciation 72395.00 0.00 5568.85 0.00 289.58
Product Overheads 0.00 0.00 0.00
Change Giving Mechanism 22250.00 0.00 1711.54 0.00 89.00
Royalty 21000.00 0.00 1615.38 0.00 0.00

Subtotal 176437.50 91000.00 13572.12 7000.00

Tool Design Department 330000.00 0.00 25384.62 0.00

OPPORTUNITY
COST

Expected Rate of Return 10% 17643.75 0.00 1357.15 0.00

Subtotal 347643.75 0.00 26741.77 0.00

Total Cost (Estimated) 315250.00 59275.00 24250.00

Revenue (RS. 1680 x 250) 420000.00 420000.00 32307.00 32307.00
Net Profit 243562.00 104750.00 -26968.00 8057.00