FOR MAKING PLASTIC BRICKS
Introduction
The business idea is for making and marketing of plastic bricks. This business idea is premised on production of 13,000 plastic bricks per month which translates into 156,000 plastic bricks per year. The revenue potential is estimated at US $ 6,500 per month which translates into US$ 78,000 per year. The project cost is US $ 7,374.
Production Process
The process involves filling and compacting soil in mineral water bottles. After compacting, the bottles are then sealed with bottle caps.
Market Analysis
Plastic bricks making is still a new idea on market, but the bricks are believed to be long lasting for a period of 100 years if used. They are suitable when constructing in wetlands. The idea will also help government and local authorities to reduce on plastic waste and protect the environment.
Capital investment requirements in US$
|
Item Unit |
Quantity |
Unit Cost |
Total |
|
|
Hoes |
No. |
5 |
3 |
16 |
|
Spades |
No. |
5 |
3 |
15 |
|
Wheelbarrow |
No. |
2 |
30 |
60 |
|
Total cost of Machinery |
|
|
91 |
|
Production and Operating Costs in US$
Direct Materials, Supplies and Costs
|
Cost Item |
Units |
Unit Cost/ day |
Prod. cost/ day |
Qty/ day |
Prod. Cost/ month |
Prod. Cost/ year |
|
soil |
Tones |
10 |
1 |
10 |
260 |
3,120 |
|
Plastic bottles |
No. |
0.01 |
500 |
3 |
65 |
780 |
|
Sub-total |
|
|
|
325 |
3,900 |
|
|
General costs (Overheads |
|
|
|
|
||
|
Utilities (water) |
|
|
5 |
60 |
||
|
Salaries |
|
|
125 |
1,500 |
||
|
Rent |
|
|
150 |
1,800 |
||
|
Depreciation |
|
|
1.9 |
23 |
||
|
Sub-total |
|
|
280 |
3,383 |
||
|
Total Operating costs |
|
|
605 |
7,283 |
||
Production assumed 312 days per year with a daily capacity of 500 plastic bricks.
Depreciation (fixed assets write off) assumes 4 years life of assets write off of 25% per year
Direct costs include: materials, supplies and other costs that directly go into production of the product
Project Product Cost and Price Structure in US$
|
Item |
Qty/ day |
Qty/yr |
Unit Cost |
Prod. Cost /year |
Unit price |
Total revenue |
|
Plastic |
|
|
|
|
|
|
|
bricks |
500 |
156,000 |
0.5 |
78,000 |
1.0 |
78,000 |
|
|
|
|
|
78,000 |
|
78,000 |
Profitability Analysis in US $
|
Profitability Item |
Per Day |
Per Month |
Per Year |
|
Revenue |
|
|
|
|
Plastic bricks |
250 |
6,500 |
78,000 |
|
Less Production & |
|
|
|
|
Operating Costs |
23 |
605 |
7,283 |
|
Profit |
227 |
5,895 |
70,717 |