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Return on Investment
You need the following building and equipment in order to produce 227,100 litres of finished product per month. This is based on an average work day using 4 semi-skilled employees.
1. Building size Approximately 464.50 sq. meters
2. Equipment (supplied) 2 mixing machines as supplied.
3. Equipment installation Minimal labor required with average 3 day setup time.
4. Utilities & water Local electricity or equivalent, warm clean water.
5. Equipment (not supplied) Fork lift and assorted light hand equipment.
6. Initial inventory (raw materials) Minimum raw material for 41,580 litres.
7. Additional inventory Containers & packaging equipment, supplied according to individual needs.
8. Sales materials Supplied as needed
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Example of R.O.I (in U.S. dollars)
Total litres produced |
227,100 |
567,750 |
1,040,875 |
Gross product sales* |
1,260,000 |
3,150,000 |
5,775,000 |
Cost of goods sold |
580,000 |
1,387,000 |
2,462,500 |
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Gross profit |
660,000 |
1,763,000 |
3,312,500 |
GS&A** |
55,000 |
100,000 |
150,000 |
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Net profit |
625,000 |
1,663,000 |
3,163,000 |
Investment (example) |
300,000 |
300,000 |
300,000 |
Return on Investment |
208% |
554% |
1054% |
* Sales and profit projections are based on actual experience but will vary according to region and market conditions. They may be less or greater in any given situation. Manufacturers maintaining factory outlets will enjoy higher returns.
** General sales & administrative cost
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Projected Sales and Profits (in U.S. dollars)
Total Litres Produced |
227,100 |
567,750 |
1,040,875 |
1,703,250
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2,365,625
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3,501,125
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Gross Product Sales* |
1,260,000 |
3,150,000
|
5,775,000 |
9,450,000
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13,125,000
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19,425,000
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Cost of Goods Sold |
580,000 |
1,387,000 |
2,462,500 |
3,887,500 |
5,307,500 |
7,618,750 |
Gross Profit on Sales
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680,000
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1,763,000
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3,312,500
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5,562,500
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7,817,500
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11,806,250
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Gross Profit %
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53.9
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55.9
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57.3
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58.9
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59.6
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60.7
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G.S.A.**
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55,000
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100,000
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150,000
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175,000
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200,000
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200,000
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Net Profit on Sales
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625,000
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1,663,000
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3,163,000
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5,387,500
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7,617,500
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11,606,350
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Net Profit %
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49.6
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52,8 |
54.8 |
57 |
58 |
59.7 |
* Sales and profit projections are based on actual experience but will vary according to region and market conditions. They may be less or greater in any given situation. Manufacturers maintaining factory outlets will enjoy higher returns.
** General sales & administrative cost
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