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2005 % 2006 % 2007

REVENUE
Product Sales 481,377 97.0% 620990 97.8% 824494
Equipment sales 12,557 2.5% 12734 2.0% 33639
Other sales 2,150 0.4% 991 0.2% 1546
Total Revenue 496,084 100.0% 634,715 100.0% 859,679
Growth % 27.95% 35.44%
Cost of Goods Sold
Product Purchases 189,677 38.2% 248,771 39.2% 402,833
Equipments Purchases 8,375 1.7% 11,092 1.7% 27,784
Freight 25,890 5.2% 32,683 5.1% 44,924
Packaging 23,324 4.7% 18,724 2.9% 13,601
Total Cost ofGoods Sold 247,266 49.8% 311,270 49.0% 489,142

Gross Profit 248,818 50.2% 323,445 51.0% 370,537

OPERATING EXPENSES Accounting & legal


Accounting and Legal Charges 2,657 0.5% 1,597 0.3% 2,616
Advertising and promotion 598 0.1% 3,018 0.5% 4,001
Amortization 7,666 1.5% 8,507 1.3% 10,990
Bad debt 722 0.1% 967 0.2% 0
Bank charges 853 0.2% 858 0.1% 1,481
Benefits 0 0.0% 3,630 0.6% 4,389
Insurance 5,269 1.1% 9,167 1.4% 10,737
Interest 6,775 1.4% 9,496 1.5% 12,569
Lab and test kits 1,114 0.2% 3,553 0.6% 728
Meals, entertainment 10,137 2.0% 15,152 2.4% 20,307
Miscellaneous 265 0.1% 466 0.1% 1,318
Office expenses 9,438 1.9% 18,350 2.9% 8,559
Rentals 873 0.2% 1,926 0.3% 1,886
Service work 0 0.0% 3,600 0.6% 10,080
Shop expenses 25,011 5.0% 32,728 5.2% 43,099
Telephone 7,384 1.5% 7,387 1.2% 10,995
U.S. exchange 4,142 0.8% 1,988 0.3% 6,869
Vehicle expense 32,971 6.6% 34,764 5.5% 40,855
Wages 132,594 26.7% 129,020 20.3% 130,000
Payroll taxes 7,853 1.6% 7,169 1.1% 6,827
Total Operating Expenses 256,322 51.7% 293,343 46.2% 328,306
Net Earnings (loss) -7,504 -1.5% 30,102 4.7% 42,231
% 2008 %

95.9% 3,957,087 95.5%


3.9% 178,458 4.3%
0.2% 8,396 0.2%
100.0% 4,143,941 100.0%

0.0% 592165
3.2% 323067
5.2% 59075
1.6% 16804
10.0% 991111

90.0% 3,152,830

0.3% 3,976
0.5% 5321
1.3% 16,188
0.0%
0.2% 2,562
0.5% 5,311
1.2% 15,622
1.5% 17,094
0.1% 1,238
2.4% 28,836
0.2% 3,018
1.0% 10,271
0.2% 3,008
1.2% 19152 9000
5.0% 56,675
1.3% 13,689
0.8% 13,463
4.8% 55,733 10,200
15.1% 172,249 40000
0.8% 7,289
38.2% 450,695
51.8%
Financials

Revenue Contract Price Adam's Annual Cost


Product Sales $ 3,000,000.00
Salary
Cost of Goods Sold $ 1,110,000.00 Car Allowance
Commission
Gross Margin $ 1,890,000.00 Total
% 63%

Amortisation $ 21,000.00
Salary $ 40,000.00
Car Allowance $ 10,200.00
Maintenance Cost $ 9,600.00
20% of Brocks Salary $ 16,000.00
Interest Cost
Total Operating Cost $ 96,800.00
3%

Net Margin $ 1,793,200.00


% 60%
$ 40,000.00
$ 10,200.00

$ 50,200.00
Break even of Adam's Employment
Adam's Annual Cost

Salary $ 40,000.00
Car Allowance $ 10,200.00
Commission 25% of Sales
Total $ 50,200.00

Sales by Adam $ 100.00 $ 100.00

Cost of Goods Sold $ 10.04 $ 10.04


Commission $ 25.00
Contribution $ 64.96 $ 89.96

(If All the sales has been (If Adam has made $170000
Break Even of Adam's Employment brought by Adam) Sales as projected)
other Operative cost has been assumed Fixed

Salary & Maintenance $ 50,200.00 $ 50,200.00

Break Even Sales $ 77,277.94 $ 215,072.30

Cost of Goods Sold $ 7,758.46 $ 21,592.57


Commission $ 19,319.49 $ 42,500.00
Salary & Maintenance $ 50,200.00 $ 50,200.00
Total Cost $ 77,277.94 $ 114,292.57

Net Profit $ - $ 100,779.73

Assumptions

1. Cost of Goods Sold in line with Fiscal Year 2007


2. All other operating cost is fixed
$ 100.00 Sales by Adam $ 100.00

$ 10.04 Cost of Sales $ 48.23

$ 89.96 Contribution $ 51.77

(If Adam was not able to


generate New Sales)
s been assumed Fixed On the Basis of Cost

$ 50,200.00 Salary & Maintenance $ 50,200.00

$ 116,468.49 Break Even Sales 96,965.57

$ 11,693.06
0
$ 50,200.00
$ 61,893.06

$ 54,575.43

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