MAKING POWER INVERTERS
Introduction
The business idea is for making and marketing of Power Inverters. This business idea is premised on production of 15 Inventors per month which translates into 180 Inverters per year. The revenue potential is estimated at US $ 4,000 per month which translates into US $ 52,000 per year. The project cost is US $ 108,165.
Production Process
Production process involves making a metallic box, and sealing all its corners with solidal welding. Building the Oslators, Inverter system, Charging system and Automatic system, putting in switches and sockets
Market Analysis
There is an ever-increasing demand for Inverters due to power shortages and interruptions. The market for the inverters is within the country and spreads beyond our borders like Rwanda, Sudan and Congo. REEM (U) Ltd and Katwe Steel and Dynamo works are the Key players in this Industry..
Capital Investment Requirements in US Dollars
|
Item Unit |
Quantity Unit Cost Total |
|||
|
Solidaling machine |
No. |
1 |
20 |
20 |
|
Drill |
No. |
1 |
20 |
20 |
|
Hand tools |
No. |
10 |
12.5 |
125 |
|
Total cost of Machinery |
165 |
|||
Production and Operation Costs in US$
Direct Materials, Supplies and Costs
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 |
Period |
out put |
Unit cost |
unit price |
Total cost |
Total Revenue |
|
Power Invertors |
per month |
15 |
455 |
600 |
6,820 |
9,000 |
|
|
per |
|
|
|
|
|
|
|
year |
180 |
5,456 |
7,200 |
81,839 |
108,000 |
Profitability Analysis in US$
|
Profitability item |
per day |
per month |
per year |
|
Revenue |
|
|
|
|
Power Inverters |
346 |
9,000 |
108,000 |
|
Less Prod & Operating Costs |
262 |
6,820 |
81,839 |
|
Profit |
84 |
2,180 |
26,161 |