The company needs PHP10 million to finance this expansion and is at a tight

The company needs php10 million to finance this

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The company needs PHP10 million to finance this expansion and is at a tight cash position. Anthony Cruz is now wondering where to get the funds needed – invite an investor or personally borrow from a bank? Above is the comparative financial statements of Zapatoes, Inc.: Zapatoes, Inc. sold 3,300 pairs on 2013, 4,500 pairs on 2014, and 6,200 pairs in 2015. With the brand’s target market – young professionals and college students, it can only sell it at the PHP1,000 to PHP2,000 price range per pair. Anthony is wondering whether owning his own manufacturing facility can really improve its profitability. Currently, he is producing his shoes at PHP475 pesos per pair. He expects that he can lower production costs to as much as PHP300 per pair if he will manufacture it himself. However, opening a new production facility will increase operating expenses (including depreciation) by 30%. Currently, most of his operating expenses are marketing and distribution costs.
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