RAMOGI INSTITUTE OF ADVANCED

TECHNOLOGY.

BUILDING AND CIVIL ENGINEERING DEPARTMENT.

TITLE: COMICS COSMETIC BEAUTY CENTER.

PRESENTER: OCHIENG EMMANUEL NYAWANDA

INDEX NO: 7371010085

PHONE NO: 0743893044

COURSE: CERTIFICATE IN PLUMBING

COURSE CODE: 1305

SUPERVISOR: Madam Mellise Achieng

CENTER CODE: 737101

Email:ochiengemmanuel@gmail.com

PRESENTED TO: KENYA NATIONAL EXAMINATIONAL

COUNCIL IN PARTIAL FULLFILLMENT FOR THE AWARD

OF CERTIFICATE IN PLUMBING.

SERIES: NOVEMBER SERIES 2022

1
 DEDICATION
I declare this business plan to my parents for the financial support they gave unto me. I also
thank my teacher Madam Mellise for guidelines and directions that he gave for the
preparation of the business plan. I also thank my friends for the support they gave unto me.

i
 ACKNOWLEDGEMENT
I acknowledge my parents for their financial support that they gave to me to accomplish this
business plan. I also acknowledge my supervisor for guiding me in writing the project. May
almighty God shower them with blessings throughout their life.

ii
 DECLARATION
I declare this business plan as the original work of my hands after a thorough research and
study.
Name: OCHIENG EMMANUEL NYAWANDA
Signature………………
Date…………………….

Name of the supervisor: Madam Mellise Achieng

Signature………………….
Date……………………….

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Table of Contents
DEDICATION...........................................................................................................................i
ACKNOWLEDGEMENT.......................................................................................................ii
DECLARATION....................................................................................................................iii
CHAPTER ONE.......................................................................................................................1
1.0 Executive Summary...........................................................................................................1
1.1 Business Description..........................................................................................................1
1.2 Market Plan........................................................................................................................2
1.3 Organizational and Market Plan......................................................................................2
1.4 Production Plan..................................................................................................................2
1.5 Financial Plan.....................................................................................................................2
CHAPTER TWO.....................................................................................................................3
2.0 Business Description..........................................................................................................3
2.1 The Sponsor........................................................................................................................3
2.2 Ownership Structure.........................................................................................................3
2.3 The Business.......................................................................................................................3
2.4 Location and Address........................................................................................................4
2.5 Justification of The Opportunity......................................................................................4
2.6 Industry...............................................................................................................................4
2.7 Product and Services..........................................................................................................5
2.8 Entry and Growth Strategy...............................................................................................5
CHAPTER THREE.................................................................................................................6
3.0 Market Plan........................................................................................................................6
3.1 Potential Customers...........................................................................................................6
3.2 Competitors........................................................................................................................6
3.3 Pricing Strategy..................................................................................................................7
3.4 Sales Tactics........................................................................................................................7
3.5 Advertising and Promotion Strategy................................................................................7
3.6 Distribution Strategy.........................................................................................................7
CHAPTER FOUR....................................................................................................................8
4.0 Organizational Structure...................................................................................................8
4.1 Organization.......................................................................................................................8
4.3 Key Management Personnel..............................................................................................8

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4.4 Other Personnel..................................................................................................................9
4.5 Supporting Staff and Personnel........................................................................................9
CHAPTER FIVE....................................................................................................................10
5.0 Production Plan................................................................................................................10
5.1 Product and Services Design...........................................................................................10
5.2 Production Cost................................................................................................................10
5.3 Production Strategy.........................................................................................................10
5.4 Production Process...........................................................................................................11
5.5 Regulations of The Production.......................................................................................11
CHAPTER SIX.......................................................................................................................12
6.0 Financial Plan...................................................................................................................12
6.1 Pre-Operational Cost.......................................................................................................12
6.2 Working Capital...............................................................................................................12
6.3.1 Cash Flow Statement for The Year Ending 31st Dec 2022.........................................14
6.4.1 Income Statement for the Year Ending 31st Dec 2022................................................16
6.5.1 Financial Position as at 31st Dec2022...........................................................................17
6.6 Contribution Margin.......................................................................................................18
6.6.1 Contribution Margin Percentage.................................................................................18
6.7 Break Even Revenue........................................................................................................18
6.7.1 Break Even Turnover...................................................................................................18
6.8 Break Even Unit...............................................................................................................19
6.9 Desired Finance................................................................................................................19
6.10 Gross Profit Percentage.................................................................................................19
6.11 Return On Equity...........................................................................................................19

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 CHAPTER ONE
1.0 Executive Summary
The name of the proposed business will be comics cosmetic beauty center. The name comics
represents the name of the business owner. The owner of the business will be Ochieng
Emmanuel Nyawanda who is a student at RAMOGI INSTITUTE OF ADVANCE
TECHNOLOGY residing from Kisumu County pursuing a certificate in Plumbing. Comics
Cosmetic Beauty Center will be located along Kisumu-Kakamega road near equity bank. The
center is particularly dealing with selling of cosmetic items such as body lotions, body sprays,
braids, shoes especially for ladies and perfumes.
The intended potential customers of the business will be ladies because most of the item will
be sold to ladies. The customers who will be coming to the center in order to purchase
cosmetics will be approximately one thousand per day. Since that I am the owner of the
business operating as a sole proprietor making I to be the manager on my own where I will be
able to enjoy all profit encountered in the business. The products will be obtained from
Emmanuel factory that is mend for dealing with production of beauty items. The center will
be operating under hospitality. The proposed business will require a capital of 200,000 as a
starting capital in order to develop business opportunity. The amount will be raised through
bank loan, personal savings, donation from friends and relatives. The bank loan which will be
50,000 will be paid within one year in two installments at 25,000 each and the other 50,000
which will be donated from friends and relatives will not be needed to be paid back because
they donated willing fully. The starting capital will be needed for stocking cosmetics items,
rent and bills of electricity before business will start to operate. The proposed capital is
divided as follows;
Sources Amount

Bank 50,000

Personal savings 100,000

Donation from friends and relatives 50,000

1.1 Business Description

The name of the business will be Comics cosmetics beauty Centre. The word Comics
represents the owner of the business who will be Ochieng Emmanuel who is a student at
Ramogi institute of advanced technology pursuing a certificate in Plumbing. Comics
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cosmetics beauty Centre will be located along Kisumu - Kakamega road near equity bank.
The Centre will be particularly dealing with the selling of cosmetics items such as body
sprays, hair sprays, body lotions and other cosmetics items.
1.2 Market Plan
The intended potential customers of the business will be ladies because most of the items will
be sold there are meant for ladies. The customers who will be coming to the Centre in order
to purchase cosmetics will be approximately one thousand per day.
1.3 Organizational and Market Plan
Emmanuel being the owner of the business will be operating as a sole proprietor making him
to be the manager on his own where he will be able to enjoy all profits encountered in the
business. He will be responsible for coming up with organization charts in order to indicate
duties of each individual operating on her behalf.
1.4 Production Plan
The intended goods that will be sold at Comics beauty Centre such as braids of all kinds,
weaves, earrings, neckless and other beauty items will be packed in attractive bags with an
aim of attracting customers’ ability of buying them. The products will be obtained from
Emmanuel factory that is mend for dealing with production of beauty items. The Centre will
be operating under hospitality.
1.5 Financial Plan
The proposed business will require a capital of 200,000 as a starting capital in order to
develop business opportunity. The amount will be raised through bank loan, personal savings,
donations from friends and relatives. the bank loan which will be 50,000 will be paid within
one year in two installments at 25,000 each and the other 50000 which will be donation from
friends and relatives will not be needed to be paid back because they donated willing fully the
starting capital will be needed for stocking cosmetics items, rent and bills for electricity
before business will start to operate. The proposed capital is divided as follows.

Source Amount
Bank 50000
Personal savings 100000
Donations from friends and relatives 50000

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 CHAPTER TWO
2.0 Business Description
The name of the proposed business will be COMICS COSMETICS BEAUTY CENTRE. The
word Comics represents the name of business owner. The owner of the business will be
Ochieng Emmanuel Nyawanda who is a student at Ramogi institute of advance technology
pursuing a certificate in Plumbing. Comics cosmetics beauty Centre will be located along
Kisumu - kakamega road near equity bank. The Centre is particularly dealing with selling of
cosmetics items such as body lotions, body sprays, braids, shoes especially for ladies and
perfumes.
2.1 The Sponsor
The name of the owner of the business Centre will be Ochieng Emmanuel who is twenty-four
years old, residing from Kisumu County. He is a student at Ramogi institute of advance
technology. Having no experience in fields such as information communication technology
he will be forced to employ an employee who is well equipped with information
communication technology so as to compensate his lack of experience in that field that is
taking records of the commodities found in the Centre using computers.
2.2 Ownership Structure
The proposed business will be run as a sole proprietor. Some of the advantages of the sole
proprietor includes: the owner will be the boss of the business on his own; the owner will be
able to maximize profits on his own in the business. Some of the disadvantages include: all
losses incurred will only affect the owner of the business, for example in case of fire outbreak
the owner will suffer a lot. The disadvantage above will be corrected by going for insurance
against fire so that in case of fire outbreak he will be compensated for that.
2.3 The Business
The name of the proposed business will be Comics cosmetics beauty Centre. The business is
located along Kisumu - Kakamega road particularly in urban trading Centre in Kakamega
town. The proposed business will intend to start operating from September 2021, this is
because people especially women will be preparing themselves for holiday celebrations in
which they will require items like braids for hair dressing purpose the major activity of the
business will be selling beauty items such as body lotions and many others. The principal
customers of the business will be ladies because most of the items sold in the Centre is mend
for ladies. The location of the business will be close to the source of raw materials so as to
enhance availing of needed materials in the Centre. That is both industries producing braids,
body lotions and shoes are found within Kakamega town

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2.4 Location and Address
The business center will be located in Kakamega town along Kisumu - Kakamega road. The
business will be able to make profits in its operation because it is located along the road
where the passers-by will be able to see the items found in the Centre and they will be
attracted to buy them. The competitors in the center will be Emmanuel beauty center. Comics
will overcome his competitor by packing some of his items in very attractive bags in order to
attract customers. The address of the business be,
COMICS COSMETIC BEAUTY CENTRE
P.O. BOX 645
KAKAMEGA
And the business logo will be,

P.O. BOX 645

KAKAMEGA

And the trade mark will be multi choice meaning the center will be dealing with selling of
beauty items that are of different varieties.
2.5 Justification of The Opportunity
The main aim of the business apart from making profit is to satisfy services such as hair
dressing in which initially there was not any other beauty center constructed in the area
indeed there was a saloon nearby which will be highly demanding items such as braids to be
used in hair dressing. The opening of Comics cosmetics beauty center will enhance opening
of the other saloons and also will create employment to the individuals in which others will
be employed in the center to enhance its operation.
2.6 Industry
The name of the proposed business will be Comics cosmetics beauty center. Some of the key
characteristics of the business includes: -
1) It is a sole proprietorship.
2) There is absolute freedom as one is the boss on his own.
4
 ` COMICS COSMETICS BEAUTY
3) There is flexibility.
4)
CENTRE
There is maximization of profits.
The kind of technology applied in the business center is modern such as installation of
computers for keeping records of items found in the center.
2.7 Product and Services
The product that will be offered in the center include braids, body lotions, shoes, nail polish,
clothes and many others. The clothes will be packed in attractive bags so as to attract
customers in buying them and also will make them look unique.
2.8 Entry and Growth Strategy
The business will penetrate and gain acceptance in the market area by packaging their
products in attractive prices, by lowering prices of some of the commodities and also by
advertising the product that they will sell in the operation of the business. The center will be
planning for growth by starting with a capital of 200,000 shillings and ending with 700,000
shillings due to expansion in the business.

5
 CHAPTER THREE
3.0 Market Plan
This chapter highlights the market plan of the business which entails the kind of customers
the business will get in terms of sex, age, income and religion. It also highlights analysis of
the prospective competitors together with their strength and weaknesses. Other aspects
include sales tactics, advertisement, promotion, pricing strategy and comparison of products
the business will be dealing with that is will be selling.
3.1 Potential Customers
The potential customers will be women because most of the products that will be sold in the
center for ladies. The products will be packed both in small and large quantities so as to
ensure maximum returning of customers. Thus overtaking the competitors who will be
packing only in large quantities the mode of payment will be in cash due to the discount that
will be given to customers. The purchasing pattern for the business given will be as follows: -
Kind of customers Quantity of product Frequency of purchases
Married women buyers 100 items Weekly
Middle age women buyers 50 items Weekly
Others 25 items Weekly

3.2 Competitors
My potential competitors will be Betty beauty center and Baraka beauty center. They operate
at a far distance which is about three kilometers away from proposed business. This business
will be advantageous since these competitor’s charge prices as compared to Bahati beauty
cosmetics center in which it is offering discount unlike the competitors which will not offer.
The size of the potential competitors is medium since the business requires a lot of capital to
start. The table below shows the strength and weaknesses of the competitors.
Competitors Strength Weaknesses
Betty beauty center Consistence Poor quality goods
Baraka beauty center Accuracy Lack of skills in running the
business
Bahati beauty cosmetics Good management Poor production facilities
center

Product Bahati center Betty center Baraka center

6
 Braids 10 5 5
Body lotions 15 10 5
Shoes 20 10 5
Total 45 25 13
The table below shows comparison between products and services with the competitors.

Key: 20 – Highest value

15 – Medium value
5 – Low value
3.3 Pricing Strategy
Particularly, the selling price will be calculated depending on the cost of goods available, cost
of production and cost of transport. There will be a fixed selling price to ensure to all the
customers and discounts will be offered depending on the amount of gods purchased.
3.4 Sales Tactics
The business will apply personal selling, direct selling, trade fairs and exhibitions. This will
enable customers to have opportunity of comparing various products before making a
decision on the one to buy. The sales person will also have an opportunity to demonstrate and
explain various features of their products to the customers. Through personal selling, the
buyer will have to negotiate the terms of purchase.it will also take care of the illiterate people.
Through personal selling, the positive and negative effects of product.
3.5 Advertising and Promotion Strategy
Television media will be used in advertising the products so that the customers will be aware
of the products that will be sold. A beautiful lady will be used as an image in order to indicate
that items sold in the center are used to make someone look smarter. The advertisement will
be done thrice a week. The method of promotion of the products will be free sample so as to
enhance attraction of the customers.
3.6 Distribution Strategy
The products will be obtained from Emmanuel factory that is mend for dealing with
production of beauty items. The lorry will be used as a means of transport for transporting
goods to their required business Centre. The mean of transport will cost about thousand
shillings per month.

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 CHAPTER FOUR
4.0 Organizational Structure
4.1 Organization.
The business will be managed by the manager whose duties and responsibilities will be:
forming and implementing policies of the center which will assist in guiding he employees on
what is required of them. He will also be responsible for coordinating activities of one or
more departmental and reporting to the chair of the board of directors ‘he will supervise the
employees and even take charge of recruiting new employees into the business. Whenever it
is required. The manager of the business will earn approximately sixty thousand per month.
The management team will be compensated through job promotion, educating them on how
to become good entrepreneurs. They will also be compensated through giving commission
depending on the agreed amount of sales made at particular day. The organizational chart will
be as follows.
Managing directors

General Manager

Clerk purchasing manager Sales manager

4.3 Key Management Personnel

The business will be managed by the employees whose duties and responsibilities is as
follows;
1. Managing Director
a) Controlling the business.
b) Forming and implementing policies.
c) Reporting the chair of directors.
2. General Manager
a) Responsible for coordinating activities of all departments of the business
b) Responsible for coming up structural organizational charts indicating activities of every
employee in the business

8
 3. Clerk
a) Assist in organizing office activities.
b) Responsible for performing bookkeeping duties.
c) Responsible for keeping financial records
4. Purchasing Manager
a) Ensuring arrival of goods in the business at the right time.
b) Checking the quality and quantity of the products.
c) Keeping records of the goods brought in the business.
d) Ensuring the payment of goods is done on the right time.
5. Sales Manager
a) Responsible for organizing effective planning and budgeting.
b) Responsible for making arrangements for the transportation of goods into the business.
c) Responsible for devising strategies and techniques that are responsible for achieving the sales
target.
4.4 Other Personnel
The business requires other personnel in its operation that is both skilled and unskilled. For
the skilled the business will require computer operator who will be assisting in conduction of
trade through online and keeping records in the computer. The unskilled personnel will assist
in loading and offloading and also cleaning the environment within the center. Employees
will be developed educating and paying them in advance when they need their salaries,
giving commissions according to the sales made in a given day.
4.5 Supporting Staff and Personnel
The banker of the business will be Pope John who is toasted by many and very close to the
managers. The accountant will be John Rodgers who will be responsible for giving advice to
the business of Ochieng Emmanuel . The postal services will be obtained mostly be postal
offices.

9
 CHAPTER FIVE
5.0 Production Plan
5.1 Product and Services Design
The products that will be sold in Comics cosmetics beauty center will be designed with an
aim of attracting customers in buying the commodities. they will be packed in very attractive
bags of different sizes and shapes depending on the nature and quantity of the products. The
cost that will be used in designing the products will be approximately 10,000/=. The business
will use modern technology that is flexible technology such as credit creation to customers
that will enhance cost effectiveness. The technology will also be changed in order to see
whether it will work effectively and the one that will work best will be picked in future so as
to be used by the business.
5.2 Production Cost
The proposed business will hire machines such as computers that will assist in keeping
records, carrying out a research that is concerning the business and even conducting trade
through online. The repair and maintenance for the machine will be done on the monthly
basis by the chosen experts mainly for computers. The spare parts will be obtained within the
town particularly at Zibedi spare parts plaza. The workshop of the proposed business will be
leased at approximately 3000/= per month. Furniture such as shelf will be required to be used
for keeping the desired products to be sold. A lorry is also needed especially in transportation
of commodities from Emmanuel beauty factory to Comics cosmetics beauty center.
5.3 Production Strategy
The proposed business will require the materials that will be amounting to 50,000/= per
month in which they will be transported by the lorry. To the center. The business will employ
both skilled and unskilled personnel who will assist in the operation of the business. The
business will require 10 direct workers and 5 indirect workers. The cost for labor will be
approximately 80,000/= per month and the expenses will be 5,000/= the monthly overheads
such as electricity will be 10,000/= per month.

5.4 Production Process

Production steps in beauty cosmetics are as follows:

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 Raw materials

Sorting
t

Inspection

Packaging

Grading

Stocking

The external factors that might affect will likely shortage of water. The proposed business
will correct the problem by coming up with water projects.
5.5 Regulations of The Production
The government might affect the business through taxation of the products that will be sold
and also inspection of the products. This will not affect the business since it deals with the
legal commodities. The business will require a license and permit from the government so as
to operate smoothly

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 CHAPTER SIX
6.0 Financial Plan
6.1 Pre-Operational Cost
Pre-operational cost is as follows;
Particular amount
Market 4,000
Electricity 10,000
Transportation fee 10,000
Machines 50,000
Rent 3,000
Permit 5,000
Total 82,000

6.2 Working Capital

Particulars amount
Current assets
Debtors 20,000
Cash at hand 90,000
Cash in bank 50,000
160,000
Current liabilities
Creditors 10,000
1year loan 50,000
(60,000)

Working capital 100,000

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6.3 Cash Flow Statement for The Year Ending 31st Dec 2022

Month Jan Feb Ma Apr Ma Jun Au sept Oct Nov Dec Tota
s r y e g l
Bal b/d - 200 150 130 140 280 400 450 680 600 690 3720
0 0 0 0 0 0 0 0 0 00 0
Cash 720 600 700 740 100 150 300 240 250 300 350 1896
sales 0 0 0 0 00 00 00 00 00 00 00 00
Loan 400 600 500 300 700 800 750 600 750 100 870 7270
0 0 0 0 0 0 0 0 0 00 0 0
Debtor 500 600 400 200 250 300 260 340 650 200 300 4000
s 0 0 0 0 0 0 0 0 0 0 0 0
Total 162 200 175 208 299 288 441 334 340 480 536 3011
cash 00 00 00 00 00 00 00 00 0 00 00 00
inflow
Purcha 165 170 120 130 250 350 400 500 600 600 200 3335
ses 0 0 0 0 0 0 0 0 0 0 0 0
Salarie 800 600 400 200 130 400 600 400 334 700 650 5580
s 0 0 0 0 0 0 0 0 00 0 0 0

6.3.1 Cash Flow Statement for The Year Ending 31st Dec 2022
Month Jan Feb Ma Apr May Jun Aug Sep Oct Nov Dec Tota
s r l

13
Bal b/d 200 300 350 450 6000 700 6500 750 560 440 300 5300
0 0 0 0 0 0 0 0 0 0
Cash 200 150 160 140 2500 160 3000 160 450 700 800 3470
sales 0 0 0 0 00 00 0 0 0 0
Loan 600 700 800 600 4000 300 4500 200 160 150 700 5060
0 0 0 0 0 0 0 0 0 0
Debtor 200 300 100 200 6000 300 1500 200 250 300 350 2950
0 0 0 0 0 0 0 0 0 0
Total 120 145 141 139 1850 146 1550 131 142 159 215 1678
cash 00 00 00 00 0 00 0 00 00 00 00 00
inflow
Purcha 200 400 600 150 1000 120 1300 400 200 140 130 2570
ses 0 0 0 0 0 0 0 0 0 0
Salarie 300 200 200 200 1300 600 2000 140 300 160 120 2550
s 0 0 0 0 0 0 0 0 0 0
Total (50 (60 (80 (80 (230 (72 (150 (54 (50 (20 (25 (512
cash 00) 00) 00) 00) 00) 00) 00) 00) 00) 00) 00) 00)
outflo
w
Net 700 850 610 610 1620 740 1400 770 920 139 190 116,
cash 0 0 0 0 0 0 0 0 0 00 00 600
flow

Comics Cosmetic Beauty Center

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6.4 Income Statement for The Year Ending 31st Dec 2022
Particulars amount amount
Sales 190,000
Sales return (30,000) 160,000
Cost of sales
Purchases 80,000
Purchase return (10,000)
Closing stock (20,000) (50,000)
Gross profit 110,000
Add other income
Discount received 6,000
Commission received 4,000 10,000
Gross income 120,000
Operating expenses
Salaries and wages 60,000
Discount allowed 4,000
Rent 3,000
Electricity 5,000 (72,000)
Net profit before tax 48,000
Net profit after tax (w1) 7,680

W1 = net profit after=net profit before tax x 16/100

=16/100*48,000 =7,680

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6.4.1 Income Statement for the Year Ending 31st Dec 2022
Particular Amount Amount

Sales 200,000
Sales return (50,000) 150,000
Cost of sales
Opening stock 100,000
Purchases (30,000)
Purchases return 50,000
Closing stock (40,000) (70,000)
Gross profit 80,000
Add other income
Discount received 10,000
Commission received 12,000 22,000
Gross income 102,000
Operating expenses
Salaries and wages 60,000
Discount allowed 10,000
Rent 5,000 75,000
Net profit 27,000

6.5 Financial Position as at 31st Dec 2022

Particulars amount amount
Non-current assets
Land 20,000
Building 10,000
Machinery 40,000 70,000
Current assets
Cash at hand 50,000
Cash at bank 20,000
Debtors 10,000
80,000

16
 Current liabilities
Creditors 20,000
Short term loan 30,000
(50,000)
Working capital 30,000
Net assets 100,000
Financed by;
Capital 140,000
Net profit 48,000
Drawings (88,000)
100,000

6.5.1 Financial Position as at 31st Dec2022

Particulars amount amount
Non –current assets
Land 20,000
Building 10,000
Machinery 50,000 80,000
Current assets
Cash at hand 40,000
Cash at bank 15,000
Debtors 15,000
70,000
Current liabilities
Creditors 30,000
Short term loan 30,000
(60,000)
Working capital 10,000
Net assets 90,000
Financed by:
Capital 120,000
Net profit 48,000
Drawings (78,000)
90,000

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6.6 Contribution Margin
2022 2023

=total sales-total variable cost =total sales- total

variable cost
=160,000-30,000 =160,000-25,000
=130,000/= =135,000/=

6.6.1 Contribution Margin Percentage

2022 2023
=contribution margin *100 =contribution margin*100
Sales sales
=130,000/160,000*100 =13,500/160,000*100
=84.38%
=81.25%

6.7 Break Even Revenue

2022 2023

=total fixed cost-operating expenses total fixed cost –operating expenses

=84,000-82,000
=83,000-82,000 =2,000/=
=1,000/=

6.7.1 Break Even Turnover

2022 2023
=total sales-cost of sales =total sales-cost of sales
=160,000-50,000 =160,000-70,000
=11,000/= =90,000/=

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6.8 Break Even Unit
2022 2023
=contribution margin =contribution margin
Fixed cost fixed cost
130,000/83000 =1.60 units 135,000/84,000 =1.61 units

6.9 Desired Finance

Items Amount
Working capital 160000
Fixed assets 80000
Pre-operational cost 82000
Total 322000

Profitability
6.10 Gross Profit Percentage
2022 2023
Gross/sales*100% =Gross/sales*100%
=110,000/16000*100 70,000/160,000*100%
=68.75% = 43.75%

6.11 Return On Equity

2022 2023
= net profit after tax*100 = net profit after tax*100
Owner equity owner equity
48,000/200,000 = 14,000/20,000*100
=24% = 7%

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