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Angel Detergent Ltd Business Plan

Essay by   •  October 16, 2016  •  Business Plan  •  3,848 Words (16 Pages)  •  1,079 Views

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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

 

Production Capacity

750

12000

360000

        4,320,000

 

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


[pic 1]

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

 

For the years ending Dec 31,2010 to Dec 31,2016

 

Revenue

2012

2013

2014

2015

2016

Gross sale

140400000

176904000

216707400

260048880

307182740

(Less return and allowance)

 

 

 

 

 

Net Sales

140400000

176904000

216707400

260048880

307182740

Cost Of Goods Sold:

 

 

 

 

 

     Beginning inventory

 

 

 

 

 

     Merchandise purchases/Produced

 

 

 

 

 

     Freight

 

 

 

 

 

Cost Of Goods Available For Sale

70200000

0

0

0

0

     Less ending inventory

 

 

 

 

 

Cost Of Goods Sold

70200000

106142400

130024440

156029328

184309644

GROSS MARGIN

70200000

70761600

86682960

104019552

122873096

Selling, admin, and g expenses:

 

 

 

 

 

     Salaries and Wages

 

 

 

 

 

     Research & Development

 

 

 

 

 

     Commission to Sales Agents

 

 

 

 

 

     Rent

 

 

 

 

 

     Insurance

 

 

 

 

 

     Maintenance & Repairs

 

 

 

 

 

     Utilities

 

 

 

 

 

     Advertising Expenses

 

 

 

 

 

Office Supplies

 

 

 

 

 

     Depreciation and Amortization

 

 

 

 

 

Total sell, admin, and general expenses

63835700

44757450

52469771

60850201

69946270

Operating Income/Loss

6364300

26004150

34213190

43169351

52926825

Non operating income

 

 

 

 

 

 Non operating expense

 

 

 

 

 

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

 

 

 

10742497

13669739

NET PROFIT AFTER INCOME TAX

996729

18643121

26852161

25065826

31896058

...

...

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