Case Study of Pfizer
Autor: Iffrite Hossain • December 1, 2017 • Essay • 529 Words (3 Pages) • 530 Views
Start-Up Capital
Investment of USD 84,000 from private equity funds, which covers USD 70,000 for start-up cost and USD 14,0000 as operating cost of the company for initial 6 months until company can sustain in its funds to carry on the business operation after payback period ends.
Company expected to have average 17 customer services that budgeted for conservative average income figure of USD 52 per sales unit. Company planned to operate 6 days a week while this plan continues up to 12 month and then plan for gradual increment of 5-10% growth on each year on year.
Business starts to hit breakeven point with 3-4 month where sales unit figure exceeding the point off 22 units. However, company starts to see profitability after clearing total fixed cost and Variable cost at the point where sales unit figure exceeds 61 units within the period of 7 to 8 months. This is known as the Payback Turning Point.
Start-Up Cost[pic 1]
Initial year of the company will be reflecting the start-up expenses and operational expenses.
[pic 2]
Key Revenue Generation Forecast[pic 3]
[pic 4]
Cash Flow Statement
Key assumption for the cash flow calculations, VAT (Value Added Tax) 15% will be applied on every single sales transaction.[pic 5]
Cash Flow Forecast | Year 1 | Year 2 | Year 3 |
Cash In |
|
|
|
Sales | 247,899 | 368,932 | 529,337 |
Loans | $0 | $0 | $0 |
Investments | $57,000 | $27,000 | $2,000 |
Total Cash In | $304,899 | $395,932 | $531,337 |
Cash Out |
|
|
|
Startup Expenses (one time) | $13,000 |
|
|
Variable Costs | $51,251 | $56,376 | $62,013 |
Fixed Costs | $74,564 | $84,724 | $95,850 |
Value added Tax 15% on Sales | $37,185 | $55,340 | $79,401 |
Total Cash out | $175,999 | $196,439 | $237,263 |
Cash Flow | $128,899 | $199,493 | $294,073 |
Cash Balance | $128,899 | $328,392 | $622,465 |
Break Even Analysis
Description[pic 6] |
|
| Number | Unit |
Sales Volume per Month | 408 | Customers | ||
Sales Value per Month | 20,658.23 | US$ | ||
Variable Cost per Sales Unit | 10.47 | US$ | ||
Variable Cost Per Month | 4,270.89 | US$ | ||
Gross Margin After Variable Cost | 16,387.34 | US$ | ||
Fixed cost per Sales Unit |
| 15.23 | US$ | |
Fixed Cost Per Month | 6,213.66 | US$ | ||
Gross margin after Fixed Cost | 10,173.68 | US$ | ||
Total Cost per Sales Unit |
| 25.70 | US$ | |
Gross Margin per Sales Unit | 24.94 | US$ | ||
Sales Value per Unit | 50.63 | US$ | ||
Break Even at Sales Units | 22 | Customers within 3 to 4 Months | ||
Payback on Sales Units (PBTP) | 61 | Customers within 7 to 8 Month |
[pic 7]
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