1.

LAND AND BUILDING

S/N DESCRIPTION COST(N)
1 Rent (per annum) 150,000
TOTAL 150,000

2. MACHINERY AND EQUIPMENT

S/N DESCRIPTION QUANTITY UNIT PRICE(N) TOTAL PRICE(N) SOURCES
a. Plant, Machinery and
equipment required.
Erection, installation
and electrification
charges@ 10%
b. Vehicles 1 2,000,000 2,000,000 Carmart motors
c. Other Fixed Assets
Generator 1 84,000 84,000 Elepaq.
Sewing machine 1 90,000 90,000 Larfem Nig. LTD
Filing machine 3 15,000 45,000 Larfem Nig. LTD
Lax 8 4,000 32,000 Salimon
collection
d. Furniture and fittings 3 10,000 30,000 Sholay furniture
Total 2,281,000

3. STAFF AND LABOUR (PER MONTH)

S/N DESIGNATION QTY MONTHLY SALARY(N) TOTAL COST(N)
1 (i) Personnel
Manager 1 30,000 30,000
Typist 1 15,000 15,000
Salesman 3 12,000 36,000
2 (ii) Technical skilled and unskilled
Skilled workers 2 20,000 40,000
Unskilled workers 3 10,000 30,000

Allowances @30% of salaries 45,300

Total 196,300

4. RAW MATERIALS AND PACKAGING MATERIALS (PER MONTH)

S/N DESCRIPTION QUANTITY UNIT PRICE(N) TOTAL PRICE(N) SOURCES
1 Leather 35yards 500 17,500 Kay shoes
2 Sole 15yards 300 4,500 Kay shoes
3 Gum 5litres 1500 7,500 Kay shoes
4 Hole punch 2 2000 4,000 Kay shoes
Total 33,500

5. UTILITIES (PER MONTH)

S/N PARTICULARS QUANTITY UNIT PRICE(N) TOTAL PRICE(N)
1 Power(IKEDC) 300kw/h 100 30,000
2 Petrol 20litres 650 13,000
3 Gas - - -
Total 43,000
6. OTHER EXPENSES (PER MONTH)
S/N PARTICULARS TOTAL COST (N)
1 Telephone 2,000
2 Repairs and maintenance 3,000
3 Advertisement and publicity 5,000
4 Transport charges 1,500
Total 11,500

7. WORKING CAPITAL([PER MONTH)

S/N PARTICULARS TOTAL COST (N)
1 Manpower 196,300
2 Raw materials 33,500
3 Utilities 9,000
4 Other expenses 25,000
Total 263,800

8. TOTAL CAPITAL INVESTMENT

S/N PARTICULARS TOTAL COST(N)
1 Land and building (For rent) 150,000
2 Machinery and equipment 2,281,000
3 Working capital (3months) 791,400
Total 3,222,400

9. COST OF PRODUCTION (PER ANNUM)

S/N PARTICULARS TOITAL COST (N)
1 Total recurring cost 300,000
2 Depreciation on machinery and equipment @10% 228,100
3 Depreciation on buildings@5% 7,500
4 Depreciation on furniture and office equipment @ 25% 7,500
5 Interest on total investment (NO 13) 322240
Total 865,340

10. TOTAL SALES (PER ANNUM)

S/N PARTICULARS UNIT PRICE(N) TOTAL PRICE(N)
1 Per day- 2pieces 10,000 20,000
2 Per week- 2pieces*6days= 12pieces 10,000 120,000
3 Per month- 12pieces *4= 48pieces 10,000 480,000
4 Per year- 48pieces*12= 576pieces 10,000 5,760,000
Total 6,380,000

11. MEANS OF FINANCE

S/ PARTICULARS VALIUE(N) REMARKS
N
1 Working capital loan 150,000 Good
2 Owner’s contribution 2,300,000 Good
Total 2,450,000

12. PROFITABILITY (PER ANNUM)

Annual profit= Total sales - Cost of production=Y
N6,380,000 - N865,340 = 5,514,660

A. Percentage of Profit on sales

Y * 100 5,514,660*100
_____________ = ________________ = 86.44%
Toal sales/Annum 6,380,000
B. % of profit on Total capital investment

Y*100 5,514,660*100
____________________= _______________ = 171.14%
Total capital investment 3,222,400

13. BREAK EVEN ANALYSIS

A. FIXED COST: Depreciation on machinery,equipment and tools:______________
1. Interest on capital investment @20%
2. Rent:
3. 40% of salary and wages:
4. 40% of other expenses( excluding rent)
Total:

B. Profit= FC*100/FC+Profit

14. Names and addresses of suppliers of machinery and equipment

NAMES OF SUPPLIERS ADDRESS
Larfem Nig.LTD Mushin Lagos
Sholay Furniture 42, Obafolabi street, Ojodu Lagos
Salimon Collections Mushin Lagos
Elepaq Generators No. 3 Fedan street, Mosafejo Ojo Alaba, Lagos.
.
15. Raw materials suppliers
NAMES OF SUPPLIERS ADDRESS