Got a tricky question? Receive an answer from students like you! Try us!

Financial Calculations for a new hair care product - Assignment Example

Only on StudentShare
High school
Author : aspinka
Assignment
Finance & Accounting
Pages 5 (1255 words)

Summary

Given below is the proposal / break-even analysis of a new product to be introduced to the market.The product is a herbal shampoo prepared from natural herbs to protect, nourish and nurture the scalp and make hair healthy, thick and lustrous…

Extract of sample
Financial Calculations for a new hair care product

And all the products have to pass through research along with the specific product development phases. Keeping in view these facts, the above table shows a list of assumptions made for the development of the hair care product. Moreover, these assumptions would serve as the baseline for calculating the revenue and costing of the product, marginal costing, sales / production basis and the break even analysis (Bernstein and Wild, 2000).Breakeven point Calculations:-
The breakeven analysis is utilized to determine the point in duration at which the revenues of the business becomes equivalent to the costs of the business. The following section of the document presents breakeven analysis of the hair care product
...
Download paper
Not exactly what you need?

Related Essays

Introduction to Accounting and Finance: Hair silk- financial plan and pitch
The procedure for taking orders would be first come, first serve basis. As the orders increase, production would also be adjusted so it can come up with the volume. For the time being, credit transactions would not be entertained for the first two to three years of operations to avoid debtors. The concept of jus-in-time production by the Japanese would be adapted so there is no need for an inventory. The following is a summary of cost break up for our product. Total Sales (in ?) 445962 Total Units sold 63709 Selling cost per unit (in ?) 7 Variable Cost Direct materials ( in %) 25% of selling…
8 pages (2008 words)
Analysis of the project if continued with only new product with optimistic sales figures
A lot of capital budgeting techniques are used to analyze the capital investments among them the most popular ones are net present value and internal rate of return. The net present value can be described as the excess of present value of cash inflow over the present value of cash out flow (Bringham and Ehrhardt, 2010, p.383). In this project the investment decision has been taken by both net present value method and the internal rate of return method. The incremental cash flows have been prepared with the help of the projected sales and costs figures. While computing the incremental cash…
3 pages (753 words)
Financial Management in Health Care
These aspects of management aim at ensuring organizations operate within profitable margins in ensuring continuity of the organization. The management ensures that organizations find sustainable sources of funding for various activities. Financial management in healthcare takes various perspectives depending on the source of funding for organizations (Gapenski, 2009). Balance sheets, for example, remain some of the best known indicators of financial performance within an organization. Balance sheets form a fundamental element of assessment of the financial position of an organization during…
4 pages (1004 words)
Financial Management in Health Care / Health Care Budget
This has followed a breakdown of the various components i.e. revenues and expenses. A final analysis of the projected income is obtained in the end. Inflation has played a major role in this process and has been considered. The projections show an increase in net income which can sustain the running of the organisation (John et al, 2007). Financial drivers A clear indication of financial drivers’ consideration is deduced from this projection. The management has considered the fixed expenses in the running of the hospital e.g. utilities as well the most vital variable expenses e.g. salaries,…
3 pages (753 words)
Duke Company: Calculations for the Project
This means that our assets will be exposed to varied amounts of risk. Among them will be credit risk. There are assets which will not be fully paid for but will be still be under operations in the business. This means they will be exposed to credit risks. Of importance will be exposure of these assets to operational risks. The assets will still be used for operations in the business. This means there will be various operational risks to be encountered in the company. There will be market risks to be encountered. This would be reflected by the dangers of our assets being declared obsolete. The…
8 pages (2008 words)
FINANCIAL MARKET AND PRODUCT RISK
The two of the stylized financial asset pricing model is Capital Asset Pricing Model (CAPM) and Arbitrage Pricing theory (APT). The paper will be focusing on the critical evaluation of these two asset pricing models and will be analyzing the justification of its use with that of a fund manager in the United Kingdom. Let us begin our discussion with the notion of these two models before plunging into their critical evaluation. Mechanics of CAPM The capital asset pricing model (CAPM) developed by Sharp (1964), Linter (1965) and Mossin (1966) (Zhang & Wihlborg, 2004, p.1) assumes that stock…
4 pages (1004 words)
Calculations
352,000 Purchases ?150,000 Opening Inventory ?65,000 Cost of Goods Available for Sale ?215, 000 Less Closing inventory ?70, 000 Cost of Goods Sold ?145, 000 Gross Profit ?207, 000 Property depreciation (5% using straight line method) ?5100 Plant and equipment depreciation (20% ) ?19500 Distribution cost ?58,000 Dividends paid ?12, 000 Administrative expenses outstanding ?4,500 Less distribution costs prepaid ?10, 000 Total Expenses ?77100 Net Profit before Tax ?129900 Corporation tax (22%) ?17500 Net Income ?112,400 c) Statement of financial position Julyfest Limited Balance Sheet for the year…
6 pages (1506 words)