Introduction to Accounting and Finance: Hair silk- financial plan and pitch

Finance & Accounting
Pages 8 (2008 words)
Download 0
Hair silk- financial plan and pitch
The business aims to manufacture 63,709 shampoo bottles during the first year of operations. Each unit would be priced at £ 7/bottle. The projections for sales revenue would be around 30% monthly…


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 cost Direct Labour ( in %) 25% of selling cost Direct expenses (in %) 10% of selling cost Variable selling cost 7.5% of selling cost QN 2 MARGINAL COST STATEMENT One of the fundamental concepts that should be understood is Marginal Cost. According to Investopedia, marginal cost is “ the change in total cost from making or producing one additional item.” Any business is interested in determining the marginal cost because it has positive effects on economies of scale. Producers or manufacturers often make calculations that would help them arrive at the best production level. If a business would like a more concrete calculation of marginal cost, they can prepare a Marginal Costing Statement. ...
Download paper
Not exactly what you need?

Related papers

Finance and Accounting Essay: International Financial Strategies
Many of the economists strongly hold the view that a global approach is necessary to regulate corporate governance in order to prevent such corporate failures in future. This paper will critically analyse whether or not a global approach to regulate corporate governance would be effective. It will also discuss the effects and benefits that this strategy may cause on multi-national companies.…
12 pages (3012 words)
Finance and Accounting Essay: Advanced Financial Accounting
There were some recent changes made in IAS 19 during June 2011 by the IASB and it has a significant impact on the accounting procedures to be followed by the entities regarding defined benefit schemes in the form of pension funds. The time was just right for these changes to take place because it was long awaited by people for IASB to make such changes. …
12 pages (3012 words)
Introduction to Accounting and Finance
Based on the forecasted data assessed with ratios and capital budgeting techniques, the project has been found highly feasible with attractive returns. For details view of the financials; forecasting sheets have also been provided. Moreover, there are some assumptions made while forecasting the financials of the project and these assumptions have also been discussed. ASSUMPTIONS ABC DRINK…
12 pages (3012 words)
Essay on introduction finance and accounting
That for the energy drink, the net profit value as a percentage of sales is estimated at between 12% to 18%. That the fixed cost will be estimated as the difference of the gross profit and the net profit figures That the direct costs; both for materials and labor is estimated at between 22% to 27% of the sales figure. 2. Assuming the drink being produced is of the 250ml packet in a bottle type of…
12 pages (3012 words)
Personal Plan Finance and Accounting Term Paper
50 50 50 50 50 50 50 50 50 50 50 50 Entertainment 100 100 100 100 100 100 100 100 100 100 100 100 Total Expenses 3195 3195 3195 3195 3195 3195 3195 3195 3195 3195 3195 3195 Savings 278 556 835 1113 1391 1669 1947 2226 2504 2782 3060 3338 Based on this monthly budget I will save a total of $278 per month. At the end of the year I will have $3,338 in savings. The highest expense in my budget is the…
3 pages (753 words)
expense 4500 Paid-in capital 90000 Property taxes 6500 Rent 22000 Retained earnings 146400 Revenues 619900 Salaries 61940 Utilities 7400 Totals 985800 985800 Picket company Income Statement as of December 31, 2012 Revenues 619900 Cost of goods sold 402610 Gross margin 217290 Expenses Depreciation expense 18250 Insurance expense 1500 Marketing expense 5600 Misc. expense 4500 Property taxes 6500…
3 pages (753 words)
Corporate finance and Financial Accounting
However, it is the responsibility of the organization to formulate and implement appropriate strategies to deal with risks. For this case, the management of XYZ opted for acquisition of the company. XYZ sold itself to ABC International in exchange for $8.2 billion. After the acquisition, XYZ estimated that the worth of its shares would be placed at $100 per share. After the acquisition, ABC would…
8 pages (2008 words)