Assumptions of the Plan 2016 2
Break Even Analysis (2016-2012) 3
Calculating Cost of Goods Sold (COGS) Per Product Line 4
Gebeta Enjoyment Business Plan
SOURCE AND USE OF FUNDS (2016)
Assumptions of the Plan 2016
Gross Sales and Pricing
The management predicts that the estimated gross sales of the first fiscal year will be $2,929,083
Average price of the company products will be US$ 5.5 per bottle with 2% annual increase
Staff
The management assumes that the company will employ eight full-time and four part time employees
Average cost of benefits for each full-time employee will be US$ 2,550 per annum
The team estimates that the average cost of benefits for each employee hired on the hourly basis will be $41 per annum
The company will provide health insurance to the employees, with projected 5% annual increase
The company will be increasing salaries and wages on 4% every year
18% of the salaries and wages will be deducted by the company for managing payroll taxes.
Expansion
The company intends to expand its operations at the beginning of the second quarter of 2018. This expansion will include renovating the existing facility ($90,000), purchasing a new one ($410, 000), purchasing three new beverage filling machines ($35,000) and three new vehicles ($69,000).
The company will also increase the number of its staff by that time. There will be fifteen (15) full-time and six (6) part-time employees to comply with the demands of the production.
The production capacity will increase from 923 thousand bottles sold during the 2017 fiscal year to 1217 thousand of bottles sold during 2018.
Financials
The total cost of equipment required by the company will be $620,000. The costs of vehicles needed for the project is $75,000
The cost of computer hardware and software will be $181, 000
The marketing expenses will not exceed $160,680 per annum (excluding initial promotional activities and unplanned advertising campaigns, which may be initiated during the financial year.
Break Even Analysis (2016-2012)
Calculating Cost of Goods Sold (COGS) Per Product Line
