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Foodpanda New Service

Autor:   •  December 7, 2017  •  1,015 Words (5 Pages)  •  636 Views

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Financial Planning

Cost Model:

Variable Cost: Variable cost will accumulate incase foodpanda deliver order i.e. fuel and traveling expense 5% per head.

Fixed Cost:

Salary Expense

Staff No. of Staff Monthly Salary Yearly Salary

- Manager Catering Service 1 Rs. 70,000/- Rs.840000

- Drivers 5 Rs. 12,000/- Rs. 900000

- Delivery man 10 Rs. 12,000/- Rs. 1,440,000

Total Rs. 3180000

Vehicles for delivery

Vehicles No. of Unit Per Unit Cost Total Unit Cost

- Suzuki Ravi 5 Rs. 640,00/- Rs. 3,200,000

Total Rs. 3,200,000

Marketing expense

Marketing Monthly Yearly

- Social Media Marketing $375 (375x106=PKR.39,750) Rs. 477,000

- SMS Marketing Rs.20,000(50,000 sms x 0.4/sms) Rs.240,000

- Web Banners/Video $400 (400x106=PKR 42,400) Rs.508,800

Total Rs. 1,225,800

Office Equipment & Furniture

Office Supplies No. of Unit per Unit Cost Total Unit Cost

- Computer/Printer 1 Rs. 30,000/- Rs. 30,000

- Furniture 1 Rs. 50,000/- Rs. 50,000

- Miscellaneous Rs. 50,000/- Rs. 50,000

Total Rs. 130,000

Capital Investment Required

- Admin and Salary Expense Rs. 3180000

- Vehicles Expense Rs. 3,200,000

- Marketing Expense Rs. 1,225,800

- Office Equipment & Furniture Rs. 130,000

Total Rs. 6,355,800

Revenue model

- Revenue would be generated through commissions charged to restaurants and caterers.

- Caterer usually charge 30% to 35% per head.

- Foodpanda will work on 15% to 20% per head (Charged from caterer).

- Price charged to consumer in terms of delivery charges.

- Variable cost is 5% per head foodpanda will charge 8% to 10% per head from consumer.

Revenue Assumption

Average Per head cost charged by caterers is Rs.700 to Rs.900.

- Foodpanda commission revenue per head = Rs. 130 (850 x 15%).

- Delivery Charges revenue per head = Rs. 85 (850 x 10%).

Break-Even Analysis

Fixed Cost = Rs. 6,355,800

Sales Revenue / head = Rs. 200/-

Variable Cost / head = Rs. 10/- (200 x 5%)

Break-Even (Unit Sales) = Fixed Cost / (Sales Revenue – Variable Cost)

= 33,452 Units

Break-even Point using the Income Statement

Unit Sales

33,452

Sales Revenue

$6,690,316

Variable Costs

$334,516

Gross Margin

$6,355,800

Fixed Costs

$6,355,800

Accounting Profit

$0

Sensitivity of Costs, Revenues, and Acct. Profit to Unit Sales

Input Values for Unit Sales

Output Formulas:

5,000

10,000

15,000

20,000

25,000

Total Costs

$6,690,316

$6,405,800

$6,455,800

$6,505,800

$6,555,800

$6,605,800

Sales Revenue

$6,690,316

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

Accounting Profit

$0

($5,405,800)

($4,455,800)

($3,505,800)

($2,555,800)

($1,605,800)

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