SBM1203 Project Economics and Finance

Published : 10-Sep,2021 | Views : 10

Question:

Assume that your team has been hired by a contractor wishing to prepare and submit an economical analysis report of the case project. Your team should prepare a financial report that focuses on economical aspects of the case project. Required to present your Project work at a designated times as you progress through the planning process.

Answer:

Raw Material	-1500	-1537.5	-1575.9375	-1615.335938	-1655.719336
Direct Labor Cost	-1000	-1025	-1050.625	-1076.890625	-1103.812891
Variable Manufacturing Overhead	-650	-666.25	-682.90625	-699.9789063	-717.4783789
Sales Commission	-17.5	-17.9375	-18.3859375	-18.84558594	-19.31672559
Travelling Expenses	-26.25	-26.90625	-27.57890625	-28.26837891	-28.97508838
Toatl Variable Costs per Unit	-3193.75	-3273.59375	-3355.433594	-3439.319434	-3525.302419
Contribution Margin	306.25	313.90625	321.7539063	329.7977539	338.0426978
Depreciation on Property,Plant & Equipment	2100000	2100000	2100000	2100000	2100000
Depreciation on Furniture & Fixtures	100000	90000	81000	72900	65610
Depreciation on Computer Equipment	180000	158400	139392	122664.96	107945.1648
Amortization of Patent	100000	100000	100000	100000	100000
Amortization of Trademark	150000	150000	150000	150000	150000
Insurance	12000	12300	12607.5	12922.6875	13245.75469
Rates & Taxes	6500	6662.5	6829.0625	6999.789063	7174.783789
Salary of Office Staffs	100000	102500	105062.5	107689.0625	110381.2891
Cleaning Charges	5000	5125	5253.125	5384.453125	5519.064453
Electricity for Office	15000	15375	15759.375	16153.35938	16557.19336
Telephone & Internet	8000	8200	8405	8615.125	8830.503125
Interest on Bond	1959763.575	1959763.575	1959763.575	1959763.575	1959763.575
Interest on Loan From Bank	1773119.425	1773119.425	1773119.425	1773119.425	1773119.425
Depreciation on Motor Vehicle	1959763.575	1959763.575	1959763.575	1959763.575	1959763.575
Salary of Marketing Staffs	1773119.425	1773119.425	1773119.425	1773119.425	1773119.425
Total Fixed Costs	10242266	10214328.5	10190074.56	10169095.44	10151029.75
Break-Even in Units	33444.13388	32539.42379	31670.39891	30834.33806	30028.83902
Break-Even in Dollars	117054468.6	116735182.9	116457995	116218233.6	116011768.6