Scribd
Upload
126 views

Product Costing Example

This document provides a cost breakdown and profit analysis for a power bank product. It estimates the manufacturing cost per unit at $14.40 including a cost of $7.95 for labor and materials. The total product cost including overhead is $37.69 per unit. The marked price is $149 per unit, allowing for a 25% retailer profit margin and expected $74.06 profit per unit. The gross margin is estimated at 49.7%. Initial capital requirements to launch the business are estimated at $70,145 including inventory, setup costs, and marketing expenses.

Uploaded by

Chethaka Lankara Silva
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
126 views

Product Costing Example

This document provides a cost breakdown and profit analysis for a power bank product. It estimates the manufacturing cost per unit at $14.40 including a cost of $7.95 for labor and materials. The total product cost including overhead is $37.69 per unit. The marked price is $149 per unit, allowing for a 25% retailer profit margin and expected $74.06 profit per unit. The gross margin is estimated at 49.7%. Initial capital requirements to launch the business are estimated at $70,145 including inventory, setup costs, and marketing expenses.

Uploaded by

Chethaka Lankara Silva
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 6

Minimum Order Qty Units 1000.

Manufacturing Cost (Including Labor and Materials) 7.95 7,950.00


Power Bank (4400mAH) 6.45 6,450.00
CIF Price / Per Unit 14.40 14,400.00
Shiping Charges 20Fts Container (Consolidated for 1000 Units) 3,000.00
Sub Total 17,400.00
GST 10% 1,740.00
Clearing Costs 1,000.00
Transportation Inbound 1,000.00
Landed Cost 21,140.00
Overhead Cost 16,537.92 16.54

Total Product Cost 21,156.54


Cost per Jacket including OH 37.69

Marked Price of the Product 149.00


Retailer profit Margin 25% 37.25

Expected Profit per Jacket 74.06

GP Margin 49.70%
Per Month Per Annum
Administration Expenses
Salaries & Wages
Business Development Manager 6,500.00 78,000.00
Branding & Digital Media Manager 5,500.00 66,000.00
Internet Expenses 59.00 708.00
Office Rental 450.00 5,400.00
ERP System (With EDI & 3PL Capabilities) 88.00 1,056.00
Domain Charges 5.00 60.00

12,602.00 151,224.00

Sales & Distribution Expenses


Online Advertising Expenses 925.00 11,100.00
3PL Fulfillment Cost (500 Orders per yr) 10.92 5,460.00
Merchandising expenses 750.00 9,000.00

1,685.92 25,560.00
Financial Expenses
Interest Expenses* 2,250.00 27,000.00

Total Overhead Cost 16,537.92 203,784.00

Providing Total Credit Upto $45,000 with 60 days for Major Retailers including Myer, Kmart
Initial Capital Requirements

Investment Required for upto Landed Cost 57,500.00


Organization Setup 1,495.00
Registration Fee 495.00
Legal Fee on Documentation, Articles etc Trade
Mark Registration 1,000.00
Retail Visits Initial Development Costs (Sunk) 2,500.00
Website Development Cost 1,250.00
Sales & Marketing Expenses 6,500.00
Office Rental Bond 900.00

Initial Capital Requirements 70,145.00

Financing Co-Founders x 04* 74,000.00 62%


Bank Loan for Working Capital @5%** 45,000.00 38%

*In Agreement with equal profit and loss sharing


** Westpac current business loan rate
June July August September
Social Media Advertising Cost
Facebook Advertising Per Month Australia 750.00 1,200.00 300.00 -
Google Advertising Per Month Australia 900.00 1,350.00 450.00 -
Facebook Advertising Per Month Other - - - -

Total Expected SMM Budget 1,650.00 2,550.00 750.00 -

Restocking Review and Development Period


October NovemberDecember January February March April May Totals

- - - - - - - 450.00 2,700.00
- - - - - - - 750.00 3,450.00
- - 1,650.00 1,650.00 1,650.00 - - - 4,950.00

- - 1,650.00 1,650.00 1,650.00 - - 1,200.00 11,100.00

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy