Angel Detergent Ltd Business Plan
Essay by Saiful Mazumder • October 16, 2016 • Business Plan • 3,848 Words (16 Pages) • 968 Views
Financial plan
Revenue Projection: The sales forecast has been made based on the current market demand and existing market growth trend. According to the forecast Angel detergent Ltd will be reaching the following sales level in the concerned years:
Maximum Production | Per hour | Per Day | Per Month | 1 year Full Capacity |
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Production Capacity | 750 | 12000 | 360000 | 4,320,000 |
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Particulars | 2012 | 2013 | 2014 | 2015 | 2016 |
Capacity Utilization | 50% | 60% | 70% | 80% | 90% |
Production Units | 2,160,000 | 2,592,000 | 3,024,000 | 3,456,000 | 3,888,000 |
Liquid Detergent(strawberry)500ml | 1,080,000 | 1,296,000 | 1,512,000 | 1,728,000 | 1,944,000 |
Liquid Detergent(strawberry)1000ml | 1,080,000 | 1,296,000 | 1,512,000 | 1,728,000 | 1,944,000 |
Total | 2,160,000 | 2,592,000 | 3,024,000 | 3,456,000 | 3,888,000 |
Cost per Unit | 2012 | 2013 | 2014 | 2015 | 2016 |
Liquid Detergent(strawberry)500ml | 25 | 26 | 28 | 29 | 30 |
Liquid Detergent(strawberry)1000ml | 40 | 42 | 44 | 46 | 49 |
Total Cost | 70,200,000 | 88,452,000 | 108,353,700 | 130,024,440 | 153,591,370 |
Selling Price Per Unit | 2012 | 2013 | 2014 | 2015 | 2016 |
Liquid Detergent(strawberry)500ml | 50 | 53 | 55 | 58 | 61 |
Liquid Detergent(strawberry)1000ml | 80 | 84 | 88 | 93 | 97 |
Total Revenue | 140,400,000 | 176,904,000 | 216,707,400 | 260,048,880 | 307,182,739.50 |
Break-Even Analysis: Here we observe that break even the break quantity is increasing because the capacity utilization is increasing from year to year.
Year | 2012 | 2013 | 2014 | 2015 | 2016 |
Fixed Cost | $ 29,751,000 | $ 41,248,980 | $ 48,961,301 | $ 57,341,731 | $ 66,437,800 |
Total Quantity | 2160000 | 2592000 | 3024000 | 3456000 | 3888000 |
Avg. Variable Cost | $33 | 41 | 43 | 45 | 47 |
Avg. Price | 65 | 68 | 72 | 75 | 79 |
Break Even Quantity | 915415 | 1510952 | 1708052 | 1905152 | 2102252 |
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Income Statement: The projected income statement for the first five years is shown below. We will start with a loss of tk. (996729) in the first year. This will be converted to a gain in the second year tk. 18643121 will reach tk. 31896058 in fifth year.
Income statement |
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For the years ending Dec 31,2010 to Dec 31,2016 |
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Revenue | 2012 | 2013 | 2014 | 2015 | 2016 |
Gross sale | 140400000 | 176904000 | 216707400 | 260048880 | 307182740 |
(Less return and allowance) |
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Net Sales | 140400000 | 176904000 | 216707400 | 260048880 | 307182740 |
Cost Of Goods Sold: |
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Beginning inventory |
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Merchandise purchases/Produced |
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Freight |
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Cost Of Goods Available For Sale | 70200000 | 0 | 0 | 0 | 0 |
Less ending inventory |
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Cost Of Goods Sold | 70200000 | 106142400 | 130024440 | 156029328 | 184309644 |
GROSS MARGIN | 70200000 | 70761600 | 86682960 | 104019552 | 122873096 |
Selling, admin, and g expenses: |
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Salaries and Wages |
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Research & Development |
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Commission to Sales Agents |
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Rent |
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Insurance |
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Maintenance & Repairs |
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Utilities |
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Advertising Expenses |
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Office Supplies |
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Depreciation and Amortization |
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Total sell, admin, and general expenses | 63835700 | 44757450 | 52469771 | 60850201 | 69946270 |
Operating Income/Loss | 6364300 | 26004150 | 34213190 | 43169351 | 52926825 |
Non operating income |
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Non operating expense |
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Net Profit Before Interest & Taxes | 6364300 | 26004150 | 34213190 | 43169351 | 52926825 |
Interest Expense | 7361029 | 7361029 | 7361029 | 7361029 | 7361029 |
Earnings Before Tax | 996729 | 18643121 | 26852161 | 35808323 | 45565797 |
Provision for income tax |
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| 10742497 | 13669739 |
NET PROFIT AFTER INCOME TAX | 996729 | 18643121 | 26852161 | 25065826 | 31896058 |
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(2016, 10). Angel Detergent Ltd Business Plan. Essays24.com. Retrieved 10, 2016, from https://www.essays24.com/essay/Angel-Detergent-Ltd-Business-Plan/71181.html
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