Price determination

• Total Production Cost (Per Unit) – Rs 70.00

• Selling price (100% of Cost) – Rs 140.00

• Selling Price at (Primary Wholesaler) – Rs 150.00

• Selling Price at (Secondary Wholesaler) - Rs 155.00

• Selling Price at (Tertiary Wholesaler) – Rs 165.00

• Selling Price at Distributor – Rs 175.00

• Selling Price at Retailer - Rs 199.00

• MRP - Rs 199.00

• Total Capital Required –

100000000.00
• Own
40000000.00
• 4 equity Partners investing Rs.1.5 crore each-
60000000.00
 Allocation

• Machines Freezer(2*4 =8lakh),mixer(2*5=10lakh),packager(4 lakh)] -

22,00,000

• Raw material 99,50,000.00

• Website 50,000.00

• Legal Expenses 70,000.00

• Land (30000 sq. ft.) 5,00,00,000.00

• Office Rent 30,000.00

• Launch Campaign and Promotion Cost 1,50,00,000.00

• SALARY 1,38,00,000.00

• Working Capital - 49,50,000.00

• Tax 40,00,000.00

• Total Allocation =
10,00,00,000.00
 POSITION SALARY No. of people DETAIL TOTAL
Head Marketing 45,000 1 45,000 X 1 45,000
Sales Manager 40,000 1 40,000 X 1 40,000
Promotion Manager 40,000 1 40,000 X 1 40,000
Divisional sales Manager 30,000 5 30,000 X 5 1,50,000
State Sales manager 15,000 25 15,000 X 25 3,75,000
Sales staff 10,000 50 10,000 X 50 5,00000

• TOTAL SALARY (Per Month): 11,50,000

• TOTAL SALARY (Per Year): 1,38,00,000

 SALES FORECASTING

METHODOLOGY: Executive Opinion Poll

• Total units of sales projection in all cities: 18,000 units p.m.

• Hence, total no. of units projected for the whole year: 2,16,000 units /annum

• Total cost :2,16,000*70 = Rs 1,51,20,000

Total profit : 2,16,000*100=2,16,00,000

BREAK EVEN POINT = TOTAL INVESTMENT
EAT
= 100000000
23640000
= 42.301 MONTHS
= 3.525YEAR
= 1286.66 DAYS