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  • MM Expense

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    Ajeeta Shreya
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    This document provides an expense and breakeven forecast for a business over its first 5 years. Total costs increase each year from 5-20% while selling prices remain constant. Expenses are divided into initial expenses (A) to generate revenue and indirect expenses (B). The breakeven point is reached in the 4th year, where net profit is Rs. 708505 as initial expenses decrease and sales increase over time.

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    This document provides an expense and breakeven forecast for a business over its first 5 years. Total costs increase each year from 5-20% while selling prices remain constant. Expenses are divided into initial expenses (A) to generate revenue and indirect expenses (B). The breakeven point is reached in the 4th year, where net profit is Rs. 708505 as initial expenses decrease and sales increase over time.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    8 views2 pages

    MM Expense

    Uploaded by

    Ajeeta Shreya
    This document provides an expense and breakeven forecast for a business over its first 5 years. Total costs increase each year from 5-20% while selling prices remain constant. Expenses are divided into initial expenses (A) to generate revenue and indirect expenses (B). The breakeven point is reached in the 4th year, where net profit is Rs. 708505 as initial expenses decrease and sales increase over time.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 2

    Expense and breakeven forecast

    Year

    Total cost price ( before


    indirect expense)

    First year
    Second Year
    (5%)
    Third Year (10%)
    Fourth Year
    (15%)
    Fifth Year (20%)

    3668876

    5136427

    3852320
    4237552

    5393248
    5932573

    4873185
    5847822

    6822459
    8186951

    First Second
    Year Year
    Gross Profit( Profit Before
    Indirect Expenses)

    Selling price(first
    year)

    Third
    Year

    Fourth
    Year

    Fifth
    Year

    1467551

    1540928

    1695021

    1949274

    2339129

    15000

    1123333

    683333

    356000

    356000

    356000

    50000
    240000

    50000
    240000

    50000
    240000

    0
    240000

    0
    240000

    250000
    1678333

    250000
    1223333

    150000
    796000

    100000
    696000

    100000
    696000

    Mattress(bundling)
    Packaging
    Customization (10%)
    Spa(10% discount + 10%
    commissions)
    Courier
    Beauty parlour( Flyers)
    Furniture company
    ( promotional)

    22600
    309088
    52669

    22600
    324542
    52669

    22600
    350506
    52669

    22600
    403082
    52669

    22600
    483698
    52669

    20546
    3477
    67000

    20546
    3477
    33500

    20546
    3477
    0

    10273
    3477
    0

    0
    3477
    0

    57500

    Total Expense B
    Net profit(Gross profit-A-B+
    Customizations)

    475380

    457334

    449797

    492100

    562444

    -633494

    -87071

    501892

    708505

    1133353

    Total Profit/Loss

    -633494

    -720565

    -218673

    489832

    1623186

    Indirect Expenses
    Web sites making
    Advertisement(newspaper +
    billboards )
    Interior
    designers( recommendations
    )
    Rent(DMart +Big Bazar)
    Dermatologist( recommenda
    tions )
    Total Expense A

    EXPENSE FORECAST

    Whole expense is divided into two parts, i.e. expense A and expense B, where A mainly
    includes initial expenses to generate long term revenue and attract customers for generating
    trials while expense B includes primarily indirect expenses.
    BREAKEVEN POINT
    Breakeven point is reached in fourth year of the business, with Rs. 708505as profit in fourth
    year. This we reached with decreased in initial expenses and increase in sales.

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