Overall Fasteners

Turnover 103000 96000

Cost of goods sold 70000 52240 17760Material (including material overhead of $2500) 31000 31000Direct labour 1610 1610Machine Overhead 4400 4400General overhead 32990 15230 17760Factory support & supplies 3490 3490

Technical Administration 6500 400Support departments 6500 6500

Machining department 13450 2400Tooling department 3050 2440

Trading Margin 33000 43760

Reserarch & Development 5800 4350Sales, General & Administration 17700 17700 0Administration 2760 2760Marketing & Selling 7930 7930Shipping & Distribution 3170 3170Commissions Expense 3840 3840

Income before Taxation 9500 21710

Machines

7000

000

0

61000

11050610 20% for attaching machines and rest for fasteners

-10760

1450

0000

-12210

4500 for Attaching machine service cost. Balance engineering cost, 20% for fastener production machinery repair and rest for attaching machines manufacturing

2.4M for repair of production machinery and rest for manufacture and refitting of attaching machines

20% for attaching machines and rest for fasteners

4500 for Attaching machine service cost. Balance engineering cost, 20% for fastener production machinery repair and rest for attaching machines manufacturing

2.4M for repair of production machinery and rest for manufacture and refitting of

SS Ring Prong Tack SS$ per 1000 units Total ($000)

Sale 46.75 39.83 17.8 38.4 12000

Material Cost 11.2 10.09 6.02 14.18 2874.866Direct labour 1.32 1.43 0.21 0.66 338.8235

Overhead 29.81 27.6 5.24 15.9 7651.765Machines 2.06 2.29 0.82 1.8 528.7701General 27.75 25.31 4.42 14.1 7122.995

Total Cost 42.33 39.12 11.47 30.74 10865.45

Gross Profit 4.42 0.71 6.33 7.66 1134.545

Units 256684492 225960331.41 3370786517 390625000

Ring Prog Tack TotalTotal ($000)9000 60000 15000 96000

2279.94 20292.13 5539.063 30986323.1233 707.8652 257.8125 1627.624472

6236.505 17662.92 6210.938 37762.1287517.4492 2764.045 703.125 4513.3891565719.056 14898.88 5507.813 33248.73954

8839.568 38662.92 12007.81 70375.75656

160.4318 21337.08 2992.188 25624.24344

(Amount in $)Fasteners sale through Automatic Machines 49,000,000.00 Fasteners attatched through average rented machine 7,000.00 Automatic machines rented 7,000.00 Average rent per year 954.93 Total rent 6,684,507.04 Average modification expense per year 1,400,000.00 Research & Development (One time) 1,450,000.00 Service cost per year 4,500,000.00 Manufacturing Cost (Machining) (One time) 163,211,384.94 Manufacturing Cost (Tooling) (One time) 9,252,690.04

(One time) 1,600,000.00 Profit on sale of fasteners (On average) 11,081,145.83

Year 0 1

Manufacturing cost(Machining + Tooling) -172,464,074.97 Research & Development -1,450,000.00 Engineering Cost -1,600,000.00 Profit on sale of fasteners (On average) 11,081,145.83 Total rent 6,684,507.04 Other expenses -5,900,000.00 Total -175,514,074.97 11,865,652.88 IRR 3.0626%

0.03

Engineering cost for attaching machine manufacturing (Technical Administration)

Since above calculation is at current prices so IRR>0 means profitable

Weigthed average production of Manual (Having life of 10 years)Weigthed average production of Automatic machines

This year total manufacturing cost for machines ($000)So Manufacturing cost to be attributed to Automatic machines

This year total tooling costs for machines ($000)So tooling cost to be attributed to Automatic machines

2 3 4 5 6 7

11,081,145.83 11,081,145.83 11,081,145.83 11,081,145.83 11,081,145.83 11,081,145.83 6,684,507.04 6,684,507.04 6,684,507.04 6,684,507.04 6,684,507.04 6,684,507.04

-5,900,000.00 -5,900,000.00 -5,900,000.00 -5,900,000.00 -5,900,000.00 -5,900,000.00 11,865,652.88 11,865,652.88 11,865,652.88 11,865,652.88 11,865,652.88 11,865,652.88

>0

81.0526315789380.434782609

107608870.1839639

610502.863589032

8 9 10 11 12 13

11,081,145.83 11,081,145.83 11,081,145.83 11,081,145.83 11,081,145.83 11,081,145.83 6,684,507.04 6,684,507.04 6,684,507.04 6,684,507.04 6,684,507.04 6,684,507.04

-5,900,000.00 -5,900,000.00 -5,900,000.00 -5,900,000.00 -5,900,000.00 -5,900,000.00 11,865,652.88 11,865,652.88 11,865,652.88 11,865,652.88 11,865,652.88 11,865,652.88

14 15 16 17 18 19

11,081,145.83 11,081,145.83 11,081,145.83 11,081,145.83 11,081,145.83 11,081,145.83 6,684,507.04 6,684,507.04 6,684,507.04 6,684,507.04 6,684,507.04 6,684,507.04

-5,900,000.00 -5,900,000.00 -5,900,000.00 -5,900,000.00 -5,900,000.00 -5,900,000.00 11,865,652.88 11,865,652.88 11,865,652.88 11,865,652.88 11,865,652.88 11,865,652.88

20

11,081,145.83 6,684,507.04

-5,900,000.00 11,865,652.88

SS Ring Prog TackTotal ($000)

Sale 12000 9000 60000 15000

Material Cost 2874.8663102 2279.9397439 20292.134831 5539.0625Direct labour 338.82352941 323.12327391 707.86516854 257.8125

Overhead 3817.1364844 3157.6802197 9642.1864303 3245.834438Machines 528.77005348 517.44915893 2764.0449438 703.125General (Modified) 3288.3664309 2640.2310608 6878.1414865 2542.709438General (Initial) 7122.9946524 5719.0559879 14898.876404 5507.8125

Total Cost 7030.826324 5760.7432376 30642.18643 9042.709438

Gross Profit 4969.173676 3239.2567624 29357.81357 5957.29056241.41% 35.99% 48.93% 39.72%

Research & Development 0 0 3480 870Administration 315.42857143 236.57142857 1766.4 441.6Marketing & Selling 1132.8571429 849.64285714 4758 1189.5Shipping & Distribution 452.85714286 339.64285714 1902 475.5Commissions Expense 219.42857143 164.57142857 2764.8 691.2

Profit before tax 2848.6022475 1648.828191 14686.61357 2289.490562Profitability 23.74% 18.32% 24.48% 15.26%

Total

96000

309861627.624

19862.844513.38915349.45 15349.4533248.74 33248.74

52476.47

43523.5345.34%

4350 43502760 27607930 79303170 31703840 3840

21473.5322.37%

Attaching capacity for all machines in the field 287,025.00 per minuteAttaching capacity for manual machines in the field 35,525.00 per minuteAttaching capacity for automatic machines in the field 251,500.00 per minute

ML's unit sales volume for all four categories 4,244,056,340.24Operation in minutes 14,786.36Operation in hours 246.44