Concept Testing
Autor: Joshua • January 18, 2018 • 1,339 Words (6 Pages) • 552 Views
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http://www.fabrictraders.com.au/shop/
http://www.waterhouseleather.com/case_and_bag_leather.htm
Project budget
- Capital expenditure budget
New sliding bag does not require new production line investment. Nevertheless, development team need to research for sliding method solution, therefore the budget for equipment is at $5,000 and can be used for 3years. .
Capital budget
Total cost
$ 5,000
Expected life (month)
36
Monthly depreciation
$139
- Labour budget
Assuming working hours are 8 hours/day and 5 days/ week, public holiday exclusive. Project duration is expected to be in 83 working days.
Labour cost is:
Resource names
Working Hours
Pay rate
Total ($)
Project Manager
320
40
12,800.00
Project development team
344
35
12,040.00
Technician
376
30
11,280.00
CEO
144
70
10,080.00
Designers
488
35
17,080.00
Accountant
64
35
2,240.00
Marketing Assistant
16
30
480.00
Project Assistant
16
30
480.00
Total
79,080.00
- Raw material:
- Raw material is not required till 4th week of the project and is expected at $2,000 then increase 15% in each month. At this stage the team is just investigate and build prototype for testing. Therefore, raw material is just used for research purpose.
- The project period is 83 working days which is approximately 4 months start from 1//07/2014 and finish on 23/10/2014.
- Total raw material is $2,000 + $3,000 + $4,500 + $5,062 = $14,562
- Provision for overhead costs:
- Administrative costs - $450/month
- Rental $ 2,000/month
- Utilities $ 400/month
- Other cost (in case unexpected cost occur): $500/month
Operating expenses
1st month
2nd month
3rd month
4th month
Administrative costs
450
450
450
450
Rental
2,000
2,000
2,000
2,000
Utilities
400
400
400
400
Equipment depreciation
139
139
139
139
Others
500
500
500
500
Total
3489
3489
3489
3489
Total variable cost
13,596
Labour cost
79,080
Material (fix cost)
14,562
Total operation expenses
107,238
- Budget summary
Due to handbag is fashionable product, its product life cycle is believed shorter than other type of product. Therefore, the financial is predicted for next three year period
- Project costs approximately $ 107,238 include $ 79,080 labour cost.
- Discount rate is 10% per annum
- Assuming 2m2 of leather, cardboard and fusible web, 1 set of strap and 4 sliders are required to produce 1sliding
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