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Project on Share Market

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Project on Share Market Powered By Docstoc
					            Profit Model Tool (Version 1.0)
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  Taylor shall not be liable to the user of this tool or any other
person or entity with respect to liability, loss, or damage caused
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                                tool.
any kind, either
 is tool, including
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                                      PROFIT MODEL EXAMPLE
                                                                  YEAR
                                        2007          2008          2009            2010          2011         TOTAL
 MARKETING FORECAST
                         Unit Price                                        $40             $42           $44
               Market size (units)                                   600,000         660,000       726,000
                      Market share                                         10%          10%           10%
                        Unit sales                                       60,000       66,000        72,600
     TOTAL PROJECTED SALES                                         $2,400,000     $2,772,000     $3,194,400       $8,366,400

    PRODUCT COSTS                                                 YEAR
      Project Costs                     2007          2008          2009            2010          2011         TOTAL
                 Project Planning      -$300,000                                                                  -$300,000
                Project Execution      -$500,000                                                                  -$500,000
                   Project Control     -$700,000                                                                  -$700,000
                   Documentation                     -$250,000                                                    -$250,000
                Test & Verification                  -$925,000                                                    -$925,000
Total Product Development Costs       -$1,500,000   -$1,175,000                                                  -$2,675,000

  Product Support Costs                 2007          2008          2009            2010          2011         TOTAL
               Maintenance Costs                                    -$600,000      -$660,000     -$660,000       -$1,920,000
 General & Administrative Expense                                    -$24,000       -$27,720       -$31,944         -$83,664
              Overhead Expense                                      -$120,000      -$138,600     -$159,720        -$418,320
                       Advertising                    -$25,000       -$48,000       -$55,440       -$63,888       -$192,328
    Total Product Support Costs                       -$25,000      -$792,000      -$881,760     -$915,552       -$2,614,312


      TOTAL PRODUCT COSTS             -$1,500,000   -$1,175,000     -$792,000      -$881,760     -$915,552       -$5,289,312

PROFITABILITY FORECAST                  2007          2008          2009            2010          2011         TOTAL
           Profit Before Tax (PBT)    -$1,500,000   -$1,175,000    $1,608,000     $1,890,240     $2,278,848       $3,102,088

                                                                                             Total Cost        -$5,289,312
                                                                                            Total Sales         $8,366,400
                                                                                              B/C Ratio               1.58
                                                                                  Profit (Before Taxes)         $3,077,088
                                                                                                   ROI                58%

				
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