Escolar Documentos
Profissional Documentos
Cultura Documentos
Price Strategy
Rs 500 10 25 10
350 10 85 990
After making all the above costing we give two prices to our two dealers.
1500 1600
1800
Users of our helmet save the following cost Cost of Bluetooth Hand free Helmet Fuel Cost Total 950 250 1000 100 2300
Difference
500
Financial Plan
Future Plans
Our future plans are as follows 2013 Break even
2014
Open one retail store for B2C business and gain other bike dealers in to the customers list.2 branch offices in Lahore, Faisalabad, and Multan.
2015
2016
Key Assumptions:
Increase in Cost of Raw Materials Increase in Staff Salaries Increase in Utilities (Electricity / Water / Gas) Increase in Office Expenses Depreciation Increase In Sales
10 % per year 10% per year Straight line method 15% Per Year
Financial Plan
Startup Cost
Building & office Furniture& Fixture Advertisement Legal Expense Machinery & Equipment Miscellaneous Expenses Total Startup Cost 760,000 200,000 150,000 50,000 800,000 40,000 2,000 ,000
Income Statement
8.3) Projected Income Statement
YEARS Sales Cost Of Goods Sold GROSS PROFIT LESS: EXPENSES ADVERTISING LESS: ADMINISTRATIVE EXPENSES INSURANCE SALARIES (W-1) UTILITIES POSTAGE LEGAL&PROFESSIONAL SERVICES MISCELLANEOUS TOTAL EXPENSES OPERATING
150,000
150,000
150,000
40,000 466,000
44,000 510,200
48,400 436,150
134,000 46,900
269,800 94,430
559,850 195,948
NET INCOME
87,100
175,370
363,900
Operating Cost Of Hi Fly 1 Month Furniture Stationary& Equipment Utility Expenses Misc Expenses Total Expense 25,000 3500 63,500 220,000 42,000 392,000 20,000 15,000 1 Year 100,000 30,000
YEAR Profit Before Tax Adjustment Depreciation Cash Flow From For
380,000
681,000
Operations Before Working Capital Changes Increase/Decrease Current Assets Inventory Receivables Increase/Decrease Current Liablities Creditors Cash Generated from 249,000 365,000 378,000 481,000 In (95,000) (169,000) (184,000) (394,000) In
Operations Taxes Paid Net Cash From Operations Cash Flow From Investing Activities CAPEX Net Cash Flow from (250,000) (250,000) (275,000) (275,000) (94,000) 271,000 (195,948) 285,052 -
Cash At The Beginning Of The Year Cash & Cash Equivalents At The End Of The Year
200,000
221,000
221,000
231,052
8.5) Balance Sheet (Projected) Projected 2012 Assets Projected 2013 Projected 2014
Current Assets CASH Inventory Receivables Prepaid expenses Total Assets Current 200,000 779,500 1,038,600 2,018,100 220,000 875,000 1,207,780 2,302,780 230,000 1,059,000 1,601,882 2,890,882
Fixed Assets Machinery equipment Furniture fixtures Depreciation Total Fixed Assets (net depreciation) of 100,000 900,000 110,000 1,040,000 121,000 1,194,000 & 200,000 250,000 265,000 & 800,000 900,000 1,050,000
TOTAL Assets
2,918,100
3,343,000
4,085,000
Liabilities Equity
and
2,000,000 87,100
2,000,000 262,470
2,000,000 626,400
800,000 31,000 -
Total Liabilities
Current
831,000
Total
Liabilities
2,918,100
3,343,000
4,085,000
And Equity
Working
No. Of Employees
Yearly Salaries
Jobs Director Salaries Sales Force @ 10,000 Marketers @ 10,000 Worker @ 7500 Sweeper @ 7000 4 2 2 4 1 240,000 240,000 360,000 84000
Total
13
924,000.00
Breakeven Analysis
Breakeven in rupees = Fixed Cost / Contribution Margin Ratio Contribution Margin Ratio = Sale Variable Cost Sale = 2,400,000 1,556,000 2,400,000 = 844,000 2,400,000 Contribution Margin Ratio = 0.352 * Variable cost = admin exp. + marketing exp.
Breakeven in rupees = Fixed Cost / Contribution Margin Ratio = 720,000 / 0.352 Breakeven = 2,04,545.5 rupees
Item
Total
Jang
167400
Sales
Year
The above graph shows that there could be an increase in the revenue but the company may not reach the breakeven point.