TenAlpina Tool excel assignment 1.xlsx - Business Idea...

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Business Idea :Sales of Critical Tool for Climbing - PitonForging Cost / Month9,000DescriptionCurrent SalesProjected SalesDedicated OrderProjected SalesUnits Produced1,000Business ModelOutsourceOutsourceIn House CapacityIn House CapacityPer Unit Cost9.00Period in Months 12121212Material Cost / Unit1.45Sales Units1,0004,0004,0004,400Yearly Sales12,00048,00048,00052,800Utility Cost DistributionPrice / Unit11.0010.5010.5010.50UnitCostSales Value : 132,000504,000504,000554,400High13001962Variable costs:Low10001908Forging Cost108,000432,000Diff.30054Material Cost17,40069,60069,60076,560Variable Cost / Unit - Utility0.18Utility Cost8,6409,504Fixec Cost / Month - Utility1728Supplies5,2805,808Supplies Cost DistributionCost of Supplies110Total variable costs125,400501,60083,52091,872Good for # of Units1,000Total variable cost/Unit10.4510.451.741.74Per Unit Cost0.11Contribution margin6,6002,400420,480462,528Labour Cost Distribution - PlantCM % of Sales5.0%0.5%83.4%83.4%Labour / Year Cost57,500CM / Unit0.550.058.768.76# of Labours6Total Labour Cost/Yr345,000Fixed Cost :Capacity48,000Labour Cost345,000345,000Labour Cost / Unit7.19Occupancy Cost33,00033,000Administrative Cost - PlantDepreciation Cost14,35514,355Per Month Cost600Utility - Fixed Cost / Year20,73620,736Per Year Cost7,200Administration Cost/Year7,2007,200Occupancy Cost / Year33,000Depreciation Cost / Year14,355Total Fixed costs00420,291420,291Total variable cost/Unit0.000.008.767.96Cost of Acquisition - Plant100,000Operating income (EBIT)6,6002,40018942,237Operating Income / Unit0.550.050.000.80Break Even :Total Fixed costs00420,291420,291CM % of Sales5%0%83%83%CM / Unit0.550.058.768.76B.E Sales Required00503,773503,773B.E Units Required0047,97847,978Magin of Safety :Actual Sales132,000504,000504,000554,400Break Even Sales00503,773503,773Margin of Safety132,000504,00022750,627Safety Ratio100%100%0%9%Degree of leverage :Contribution Margin6,6002,400420,480462,528Net Operating Income6,6002,40018942,237Operating Leverage1.001.000.000.09DescriptionCurrent SalesProjected SalesDedicated OrderProjected SalesBusiness ModelOutsourceOutsource

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