Revolutionary Footware Product Assignment Example | Topics and Well Written Essays - 1500 words

Revolutionary Footw be Product - Assignment ExampleThese statements shall then be used to determine if the fuddle is viable or not. To bring out this details, the report shall develop a marginal costing statement that clearly points out the cost per unit of producing each item of the new footwear product, a reprieve even analysis table and graph that shows the time that the project will take to break even, a cash budget that shows how cash will be utilized across the first of all 12 months, a forecast income statement that shows how much profits will be made from the project within the first 12 months and a forecast balance sheet that shows the projects assets and liabilities as at the wipeout of each of the first 12 months of operation. The new footwear product that will be developed is a sports clothe that is made of alligator skin combined with goat skin which is known to be strike and comfortable as well as durable enough to fit the potential anticipate for this project. Alligators are rare species and as such the portion of alligator skin used on each shoe will be minimal. On the other hand, goat skin is promptly operational therefore the lend of the same is expected to be sufficient (Boer Goats 2011). The footwear product shall be referred to as the sporting pecuniary projections The products revenue forecasts, the profits and the cash flows are based on the following assumptions The goats skin shall be readily operable and each alligator skin available shall be utilized to the maximum, Due to the revolutionary disposition of the product, the monthly sales are expected to be 50,000 units with a monthly growth rate of 2%. The market for the product is expected to be readily available delinquent to the number of shoe distributors available The footwear product has a high growth potential in the United Kingdom due to its light weight and durability which will make it stand out from the rest of the footwear products available in the United King dom and eventually the world at large. The value of the footwear product is expected to be ?40 per unit which is charged based on the quality of the footwear and the competitors as shown by the price of footwear in the UK and the US (All footwear 2011). The production capacity of the production process is expected to affect at the optimal point from the beginning of the project (West, Hussey and Bendrey, 2003). Marginal costing cost statement (Evans and Michael 2011). The price of the new footwear product will be equal to ?40 as shown in the marginal cos