MAKING BATHROOM SANDALS
Introduction
Bathroom sandals are casual wear used by all sections of society especially in home setting. They are normally put on en one is going to take a shower or when one is in the confines their homes and can be made in ordinary fancy sizes and colours. Their market structure is wide because they are used by all people in the society. Their demand prospect is high due to the continuous increase in income of people and improved life styles.
Market Analysis
Bathroom sandals are a necessity especially to people with good income;
secondly their life span is short so there is continuous demand.
Production Capacity
The business idea is premised on production of 12,012 pairs of sandals per
month which translates into 144,144 pairs per year. The revenue potential is
estimated at US$ 306 per US$60,067 per year with a sales margin of 20%. This
project Investment is US$67,060 for the first year of operation. This depends
on the raw materials and equipment used in the production process.
Process Description
The process involves cutting cellular rubber sheets into required shapes &
sizes and ready-made straps are fixed to the cut rubber sheets depending on the
size and Colour.
Capital Investment Requirements in US$
|
Item |
Units |
Qty |
Unit |
Amount |
|
Hydraulic cutting machine |
No |
1 |
2,500 |
2,500 |
|
Drilling Machine |
No |
1 |
750 |
750 |
|
Smoother Machine |
No |
1 |
150 |
150 |
|
Drilling
bits for straps, |
No |
6 |
10 |
60 |
|
Delivery van |
No |
1 |
9,000 |
9,000 |
|
Total |
12,460 |
Production
and Operating Costs in US$
1. Production costs assumed are for 312 days per year with a daily capacity of
462 pairs of bathroom sandals.
2. Depreciation (fixed asset write off) assumes 4 years life of assets written
off at _25% per year for all assets.
3. Direct Costs include materials, supplies and other costs that directly go
into production of the product.
4. A production month is assumed to have 26 days Hawaii Rubber
Project production Costs and Price Structure in US$
|
Item |
Qty/ |
Qty/Yr |
Unit |
Prod |
Unit |
|
|
Bathroom |
462 |
144,144 |
0.4 |
54,607 |
1.1 |
|
|
|
|
|||||
|
Cost Item |
Units |
Unit |
Qty/ |
Prod |
Prod |
Prod
|
|
Direct costs |
|
|
|
|
|
|
|
|
No |
10 |
8 |
80 |
2,080 |
2.490 |
|
Straps |
pairs |
0.08 |
462 |
37 |
961 |
11,532 |
|
Subtotal |
|
|
470 |
3,041 |
3,041 |
36,492 |
|
General Costs(Overheads) |
|
|
|
|
|
|
|
Packing materials |
20 |
240 |
|
|
|
|
|
Rent |
75 |
900 |
|
|
|
|
|
Utilities(power) |
30 |
360 |
|
|
|
|
|
Labour |
775 |
9,300 |
|
|
|
|
|
Preliminary costs |
250 |
3,000 |
|
|
|
|
|
Other costs |
100 |
1,200 |
|
|
|
|
|
Depreciation (Asset write off) Expenses |
260 |
3,115 |
|
|
|
|
|
Sub total |
1,510 |
18,115 |
|
|
|
|
|
Total operating costs |
4,551 |
54,607 |
|
|
|
|
Profitability Analysis in US$
|
Profitability Item |
Per day |
Per Month |
Per Yr |
|
|||
|
Revenue |
193 |
5,006 |
60,067 |
|
|||
|
Less: Production and Operating Costs |
175 |
4,551 |
54,607 |
|
|||
|
Profit |
18 |
455 |
5,461 |
|
|||
|
|
|
||||||
|
|||||||
|
|||||||
Market Analysis:
Bathroom sandals are a necessity especially to people with good income;
secondly their life span is short so there is continuous demand.