business plan on bicycle
TRANSCRIPT
![Page 1: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/1.jpg)
![Page 2: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/2.jpg)
ARE WE FAMILIAR WITH THIS?
![Page 3: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/3.jpg)
NOBODY CAN ESCAPE.
![Page 4: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/4.jpg)
WHAT IS HAPPENING WITH US IN THIS CASE?
If you are
clever than
teachers…
![Page 5: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/5.jpg)
WHERE ARE YOU GOING?……SIT DOWN
![Page 6: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/6.jpg)
If you are
not...
![Page 7: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/7.jpg)
GO LATE IN THE CLASS AND…?
![Page 8: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/8.jpg)
Have to
find out
a solution
from this..
![Page 9: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/9.jpg)
AN EASY SOLUTION
![Page 10: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/10.jpg)
![Page 11: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/11.jpg)
ROADSTAR BICYCLE CO. LTD. GO AHEAD WITH A ECO-FRIENDLY VEHICLE
![Page 12: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/12.jpg)
ROADSTAR BICYCLE COMPANY LTD.
312/a, Panthapath, Dhaka.
![Page 13: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/13.jpg)
BOARD OF DIRECTORS
![Page 14: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/14.jpg)
AREA OF OPERATION
Dhaka
Chittagong
Rajshahi
Brisal
Khulna
Rangpur
Sylhet
Maymensingh
![Page 15: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/15.jpg)
PRODUCT RANGE
Kids Bicycle
Men Bicycle
Women Bicycle
Cycling helmet
Navigation device
![Page 16: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/16.jpg)
KIDS BICYCLE
Features:
Easily handling
Smooth running
Strong
supportive wheel
Comfortable
![Page 17: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/17.jpg)
MEN BICYCLE
Features:
Strong body
Easy moving
Hydraulic
break
Front & back
light
Gear system
![Page 18: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/18.jpg)
BICYCLE FOR GIRLS
Features :
Easy ride
Light
Gear
Comfortable
![Page 19: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/19.jpg)
CYCLING HELMET
Why our helmet?
Safer
Easy portable
Strongest
Well vantilated
![Page 20: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/20.jpg)
NAVIGATOR
Features :
Navigation
service
Speed meter
Solar charger
Anti-
harrasement key
GPS facility
![Page 21: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/21.jpg)
LATEST MANAGEMENT ACCOUNTING TOOLS
Just in time(JIT) system
![Page 22: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/22.jpg)
PULL SCHEDULING
![Page 23: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/23.jpg)
TOTAL QUALITY MANAGEMENT
![Page 24: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/24.jpg)
LIST OF DIFFERENT COST
Particulars Variable
cost
Fixed cost Product
cost
Period
cost
Direct materials:
8,000,000
8,000,000
Direct labor 5,000,000 5,000,000
Manufacturing overhead 3,000,000 3,000,000
Administrative cost 700,000 700,000
Selling cost 300,000 300,000
Advertising cost 500,000 500,000
Sells commission 500,000 500,000
Depreciation 500,000
500,000
Insurance cost 500,000
500,000
![Page 25: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/25.jpg)
TOTAL FIXED COST
fixed cost
2.5m
0 3000
Number of unit
Co
st
pe
r u
nit
![Page 26: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/26.jpg)
VARIABLE COST PER UNIT
variable cost
5833
0
1
Unit
Co
st
![Page 27: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/27.jpg)
JOB ORDER COSTING
Predetermined overhead rate
= Estimated total manufacturing overhead cost
Estimated total amount of allocation base
= 3,000,000/ 40,000 Direct labor hour
= Tk.75
Overhead Applied to the job
= (POHR*Actual direct labor hour)
= 75* 12.5
= Tk.937.5
![Page 28: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/28.jpg)
JOB ORDER COSTING
![Page 29: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/29.jpg)
ROADSTAR BICYCLE CO. LTD.’S
SCHEDULE FOR COST OF GOODS SOLD
Particulars Amount(tk.) Amount(tk.)
Beginning Inventory 1,000,000
(+) Raw material Purchase 7,000,000
Raw material available for production 8,000,000
(-)Ending raw material inventory 1,300,000
Raw material used in production 6,700,000
(+)Direct labor 5,000,000
(+)Manufacturing Overhead 3,000,000 8,000,000
Total Manufacturing cost 14,700,000
![Page 30: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/30.jpg)
SCHEDULE FOR COST OF GOODS SOLD (CONT.)
Praticulars Amount Amount
Total manufacturing cost 14,700,000
(+)Beginning work in process inventory 2,500,000
Total work in process for the period 17,200,000
(-)Ending work in process 1,200,000
Cost of goods manufactured 16,000,000
(+)Beginning finished goods inventory 4,000,000
Goods available for sale 20,000,000
(-)Ending finished goods inventory 2,500,000
Cost of goods sold 17,500,000
![Page 31: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/31.jpg)
ROADSTAR BICYCLE CO. LTD.’S
INCOME STATEMENT(CONTRIBUTION FORMAT)
Particulars Amount(tk.) Amount(tk.)
Sales 22,500,000
(-)Variable cost:
Direct material
Direct labor
Manufacturing overhead
Sales commission
Others cost
6,700,000
5,000,000
3,000,000
500,000
2,300,000
17,500,000
Contribution margin 5,000,000
(-)Fixed cost:
Administrative cost
Insurance cost
Depreciation cost
Advertisement cost
1,000,000
500,000
500,000
500,000
2,500,000
Net operating income 2,500,000
![Page 32: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/32.jpg)
CONTRIBUTION MARGIN RATIO (CM RATIO)
Total Per Unit CM Ratio
Sales (3000bicycles) 22,500,000.00 7,500.00 100%
Less: Variable expenses 17,500,000 5,833 78%
Contribution margin 5,000,000 1,667.00 22%
Less: Fixed expenses 2,500,000
Net operating income 2,500,000.00
Roadstar Bicycle Company
Contribution Income Statement
For the end of the year 2014
$5,000,000 ÷ $22,500,000 = 22%
6-32
![Page 33: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/33.jpg)
BREAK EVEN POINT
In unit sales:
Profit = Unit CM * Q – Fixed expenses
0 = 1666.7*Q – 2,500,000
Q = 1500 units
In dollar sales= Fixed expenses
CM Ratio
= tk. 2,500,000/0.2222
= tk. 11,245,000
![Page 34: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/34.jpg)
BREAK EVEN POINTS ON GRAPH
Total revenue
Variable cost
2.5m
Fixed Expense
0 1500 Unit sales
To
tal
sa
les
Break even point
![Page 35: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/35.jpg)
WHAT IF ANALYSIS
If we increase sales volume by 1000 units
i.e. 4000units and average sales price
decrease by tk.500 i.e. tk.7000, then the
scenario is:
Profit=Unit CM*Q – Fixed expense
=1667*4000 - 2,500,000
=4,166,667
![Page 36: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/36.jpg)
The average selling price of a of a bicycle is tk.7500
and the average variable expense per bicycle is tk.
5833 . The average fixed expense per year is
tk.2.5m. Using the formula method we determine the
sales dollars that must be generated to attain target
profits of tk.3m per year.
Profit = (Sales – variable expense) – Fixed expenses
3,000,000= Sales – 17,500,000 – 2,500,000
Sales = tk.23,000,000
Per unit sales = 23000,000/3000 Units = tk.7,667
CVP ANALYSIS
![Page 37: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/37.jpg)
NEW PROMOTION
20% DISCOUNT FOR FBS STUDENT
INSTALLMENT PAYMENT SYSTEM FOR STUDENTS
![Page 38: Business Plan on Bicycle](https://reader031.vdocuments.mx/reader031/viewer/2022030311/58f000611a28ab48558b45a7/html5/thumbnails/38.jpg)
ANY
QUESTION
??