The primary sources of the capital for NAB firm are investments and donations from family and friends amounting to $75,000. The company raises additional funds from a private organization for supplies totaling to $4,740. The funds collected will purposely be used for setting- up the business and meeting the expenses for the first months. The excess money will be used to acquire equipments and settling costs associated with maintenance, wages, and marketing.
Assumptions
The following are the assumptions regarding the operations of the NAB Company.
COGS comprise of 30% of the total sales.
Allowances and Returns will involve 2 percent of the gross sales.
The sales agent will be paid a 10 percent commission from the sales.
The bottle will be sold at $3 per unit.
Monthly growth is projected at 5 percent.
Projected 19,700 bottles to be sold in October.
Professional Services
Industry Specialists = $ 1,000
Accountants = $1,500
Attorney = $1,000
Capital Expenditure
Bank loan $50,000 at 4.25 percent interest
Funding for products =$4,740
Family= $25,000
Erick Hahn =$50,000
Staffing
Part-time = $15 hourly rate for 30 hours weekly for headcount.
Administrative worker = $1,600 monthly per headcount.
Sales Group= $1,800 monthly per headcount.
Management Employees= $3,400 monthly per headcount.
Capex
A single Land Line at $75.
Furniture worth $3,000 with scrap value of $1,500.
Two Vans each costing $28,000 with the scrap value of $8,000
I laptop is charging $ 1,500 with the scrap value of $600.
2 handset is costing $500 with the scrap value of $200.
Miscellaneous Expenses
Employee benefits = $1,670.
Salaries and wages = $10,650.
Professional services = $ 292
Rent = $1,000
Marketing and advertisement = $1,010
Depreciation = $ 0
Maintenance = $125
Telephone services = $ 50
Insurance = $50
Utilities = $ 125
Postage and shipping = $ 25
Telephone service = $50
Entrainment = $0
Travel = $0
Interest on loan = $ 177
Total Expenses = $17,821
Break-Even Analysis
