際際滷

際際滷Share a Scribd company logo

IDEA Camera for Education

Download as PPTX, PDF
Shunjiro Yatsuzuka
Shunjiro Yatsuzuka

This is a business idea of an open source gadget for IoT. You can also see demo below. http://devpost.com/software/nb-platform-for-iot

1 of 42
Download to read offline
ACCT6215 Managerial Accounting IDEA Camera Open Source Gadget for Education Anna Tumlinson Shunjiro Yatsuzuka
Contents Business Model Mission Product Description Market Position Business Operation Financial Analysis Evaluation
Mission To enable students of innovation and technology to discover all the possibilities with programmable devices connected to the cloud technology.
Product Description - Internet of Things (IoT) Easy platform for everybody to learn the technology and engineering with gadget connected to the cloud Open source software Uses single board computer Raspberry Pi Embedded software which captures images and transfers them into AWS Backend server which takes charge of work order management for Big Data Analytics.
Product Description - Architecture RasberryPIVisibleCamera CameraCase AmazonWebService PC Mobile Image Software (Front-end) Software (back-end) WebService
Product Description - Hardware Raspberry Pi and Pi Camera 123D Design to create STL model for camera case (To Be Designed)
Product Description - Hardware The case for the camera will be 3-D printed MakerBot Replicator Mini Compact 3D Printer $902.79 Initial cost Filament material will be an indirect cost
Product Description - Software Overview - DevPost http://devpost.com/software/nb-platform-for-iot GitHub https://github.com/nasebanal/nb-device4iot https://github.com/nasebanal/nb-platform4iot Dashboard Work Order Management
Market Position High School students 16,654,000 .005% = 832.7 Students College students 19,175,000 .01% = 1918 Students Other .001% = 1990 Students
Business Operation - Operation Policy No Category Item Description 1 Cost Allocation Manufacturing Cost Costing method for manufacturing cost Product Costing Period Costing 2 SG&A Cost Costing method for SG&A cost Product Costing Period Costing 3 Product Costing Costing approach for product costing Job Costing Process Costing (No trace to process) 4 Application Base Application Base for factory overhead Quantity Labor Hour 5 Spoilage / Warranty Cost recognition Cost recognition of Spoilage / Warranty Product Cost Period Cost 6 Budgeting Probability Probability of Spoilage / Warranty Expense 2% - 7 Inventory Ordering Policy JIT Not JIT 8 Inventory Safety Stock Level 0 - 9 Other Cost ABS Filament Cost tyep of material for 3D printer Direct Material Indirect Material 10 Other Cost Depreciation Model Straight Line Other Option
Business Operation - Operation Flow Sales & Marketing Inventory Hardware Software Quality Assurance Service Production Operation Check Sales Order (RecordSO to Quickbooks) Check Inventory Put Purchase Order (RecordPO to Quickbooks) AssembleProduct Print CameraCase Setup Server Deliver the products (RecordSales to Quickbooks) QB QB QB One step production and we assume we dont have any WIP.
Contents Business Model Financial Analysis Incorporation Location & Rent Cost Structure Break Even Analysis Performance Forecast Budget Plan Exit Strategy Evaluation
Incorporation Item Description Organization Type S Corp Initial Employees Full-time: 2people Part-time: 2people (Number of staff will change depending on the manufacturing volume) Equity Common Stock: $70,000 Business Registration Fee $630 Upfront Legal Fee $2,000
Location & Rent Address 1850 San Leandro Blvd.San Leandro, CA 94577 Space 312 square feet Space for manufacturing 156 square feet Space for administration - 156 square feet Rate $1.4 / square feet / month = $437.57 / month in rent Lease type Modified gross 1 year min lease Date available Dec, 2015 Utilities $100/ month
IDEA Camera for Education
Cost Structure - Direct Material Direct Material Direct Labor Variable Overhead COGM Variable Selling Expense Fixed Overhead Fixed Selling Expense SG&A Item Unit Cost (Original Cost) Raspberry Pi $36.5 Wifi USB Adapter $9.99 Power Supply $7.99 Micro SD Card $9.04 Pi Camera $22.4 Total $85.47 Variable G&A Expense Fixed G&A Expense
Cost Structure - Direct Labor Item Unit Cost (Original Cost) Hardware Engineer $15/hour 0.2hour per unit $3 ($15) Software Engineer $15/hour 0.2hour per unit $3 ($15) Total $6 Direct Material Direct Labor Variable Overhead COGM Variable Selling Expense Fixed Overhead Fixed Selling Expense SG&A Variable G&A Expense Fixed G&A Expense
Cost Structure - Variable Overhead Item Unit Cost (Original Cost) ABS Filament $0.47 ($47) Printer Toner $0.45 ($44.56) Paper for manual $0.05 ($14.99) Quality Assurance Engineer $15/hour 0.2hour per unit $3.0 ($15) Total $3.97 Direct Material Direct Labor Variable Overhead COGM Variable Selling Expense Fixed Overhead Fixed Selling Expense SG&A Variable G&A Expense Fixed G&A Expense
Cost Structure - Fixed Overhead Item Period Cost (Original Cost) Desk $0.83 / mo ($99) Desk chair $0.33 / mo ($40) Laptop $7.83 / mo ($469.99) 3D printer $7.52 / mo ($902.79) Regular Printer $0.08 / mo ($19.94) Industrial Tool $0.06 / mo ($6.89) Office Space $218.79 / mo ($437.57) Utility $50 / mo ($100) Total $285.44 Direct Material Direct Labor Variable Overhead COGM Variable Selling Expense Fixed Overhead Fixed Selling Expense SG&A Variable G&A Expense Fixed G&A Expense
Cost Structure - Variable Selling Expense Item Unit Cost (Original Cost) Amazons selling Fee $1 Cardboard $1 Warranty Expense $2.10 ($104.95) Total $4.10 Direct Material Direct Labor Variable Overhead COGM Variable Selling Expense Fixed Overhead Fixed Selling Expense SG&A Variable G&A Expense Fixed G&A Expense
Cost Structure - Fixed Selling Expense Item Period Cost (Original Cost) Amazon.com Selling Cost $39.99 / mo ($39.99) Total $39.99 Direct Material Direct Labor Variable Overhead COGM Variable Selling Expense Fixed Overhead Fixed Selling Expense SG&A Variable G&A Expense Fixed G&A Expense
Cost Structure - Variable G&A Expense Item Unit Cost (Original Cost) (None) - Direct Material Direct Labor Variable Overhead COGM Variable Selling Expense Fixed Overhead Fixed Selling Expense SG&A Variable G&A Expense Fixed G&A Expense
Cost Structure - Fixed G&A Expense (1/3) Item Period Cost (Original Cost) Labor Management $30/hour Labor Hour / month: 40 $1,200 / mo ($30) Labor Sales&Marketing $15/hour Labor Hour / month: 80 $1,200 / mo ($15) Labor Inventory $15/hour Labor Hour / month: 20 $300 / mo ($15) Labor Accounting $15/hour Labor Hour / month: 20 $300 / mo ($15) Lawyer fee $41.67 / mo ($500) CPA fee $41.67 / mo ($500) Direct Material Direct Labor Variable Overhead COGM Variable Selling Expense Fixed Overhead Fixed Selling Expense SG&A Variable G&A Expense Fixed G&A Expense
Cost Structure - Fixed G&A Expense (2/3) Item Period Cost (Original Cost) Desk $0.83 / mo ($99) Desk chair $0.33 / mo ($40) Desktop Computer $12.50 / mo ($749.99) Phone $0.25 / mo ($30) Printer $0.42 / mo ($100) Payroll Service $50 / mo ($50) Quickbooks Online $39.95 / mo ($39.95) Hosting service $5 / mo ($5) Office Rent $218.79 / mo ($437.57) Utility $50 / mo ($100) Direct Material Direct Labor Variable Overhead COGM Variable Selling Expense Fixed Overhead Fixed Selling Expense SG&A Variable G&A Expense Fixed G&A Expense
Cost Structure - Fixed G&A Expense (3/3) Item Period Cost (Original Cost) Business Card $5 / mo ($5) Stationary $20 / mo ($20) Telephone $50 ($50) Internet Service $50 ($50) Postage Cost $10 ($10) Training Cost $50 ($50) Recruiting Cost $20 ($20) Amazon Web Service for R&D $6.1 ($12.2) Desktop Computer for R&D $400 ($2,000) Health Insurance $320 ($160) Total $4,392.49 Direct Material Direct Labor Variable Overhead COGM Variable Selling Expense Fixed Overhead Fixed Selling Expense SG&A Variable G&A Expense Fixed G&A Expense
Cost Structure - Tax & Benefit Item Period Cost (Original Cost) FICA / Social Security Tax (6.2%) $202.74 FICA / Medicare Tax (1.45%) $47.42 Unemployment Insurance (3.4%) $111.18 Employment Training Tax (0.1%) $3.27 Total $364.61 Direct Material Direct Labor Variable Overhead COGM Variable Selling Expense Fixed Overhead Fixed Selling Expense SG&A Variable G&A Expense Fixed G&A Expense
Break Even Analysis Selling Price $300.00 Variable Cost $99.53 Contribution Margin $200.47 Fixed Cost $5,082.53 BEP 25 Sales Price is determined based on Cost-Plus Pricing so that we can meet the break even point in allowable duration for working capital management. As the result, our Break Even Point is 25.
Performance Forecast -Approach Whole Market Target Share Duration for convergence Numerical Model High School Students 16,654,000 0.005% 7years Modified Gompertz Curve College Students 19,175,000 0.01% 5years (Early Adapter) Modified Gompertz Curve Other 188,999,000 0.001% 10years (Late Majority) Modified Gompertz Curve 基 = + ( ) a: displacement along the x-axis b: growth rate c: asymptone r: mixture proportion between gompertz curve and linear model
Performance Forecast -Approach 0 200 400 600 800 1000 1200 1400 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 100 103 106 109 112 115 118 SalesVolume[units] Sales Volume - High School Students Gompertz Linear Modified Gompertz
0 1,000 2,000 3,000 4,000 5,000 6,000 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 100 103 106 109 112 115 118 121 SalesVolume[units] Projected Sales Cumulative High School College Students Other Performance Forecast Year end of FY1 Sales Volume: 47 Cumulative Volume: 184 Year end of FY2 Sales Volume: 131 Cumulative Volume: 1,509 Year end of FY3 Sales Volume: 92 Cumulative Volume: 2,847
Budget Plan Sales Budget Cash Budet PurchaseBudget Selling, General Administrative Expense Budget Pro Forma Statements
Budget Plan -Sales & Purchase Budget IDEA Camera Purchases Budget For the First Year Ending December, 2017 January FebruaryMarch April May June July August Septemb er October November December Annual Total Budgeted sales $- $ 1,800 $ 1,800 $ 1,800 $ 1,800 $ 2,400 $ 3,000 $ 3,900 $ 5,700 $ 7,800 $ 11,100 $ 14,100 $55,200 Current Variable Cost $- $ 573 $ 573 $ 573 $573 $763 $954 $1,241 $1,813 $2,481 $ 3,531 $ 4,485 $ 17,560 Desired ending inventory $- $- $- $- $ - $ - $ - $ - $ - $ - $ - $ - $- Total needs $- $ 573 $ 573 $ 573 $573 $763 $954 $1,241 $1,813 $2,481 $ 3,531 $ 4,485 $ 17,560 Less beginning inventory $- $- $- $- $ - $ - $ - $ - $ - $ - $ - $ - $- Purchases $- $ 573 $ 573 $ 573 $ 573 $ 763 $ 954 $ 1,241 $ 1,813 $ 2,481 $ 3,531 $ 4,485 $17,560 For the first month, we assume we dont have any sales. Company has JIT for their ordering policy, therefore, we assume we dont have any inventory
Budget Plan -SG&A Expense Budget IDEA Camera Selling, General and Administrative Expense Budget For the First Year Ending December, 2017 January February March April May June July August Septembe r October November December Annual Total Budgeted sales $- $ 1,800 $ 1,800 $ 1,800 $ 1,800 $ 2,400 $ 3,000 $ 3,900 $ 5,700 $ 7,800 $ 11,100 $ 14,100 $55,200 Variable SG&A expenses $ - $ 25 $ 25 $ 25 $ 25 $ 33 $ 41 $ 53 $ 78 $107 $152 $193 $ 754 Fixed SG&A expenses $4,797 $4,797 $4,797 $4,797 $4,797 $4,797 $4,797 $4,797 $ 4,797 $ 4,797 $ 4,797 $ 4,797 $ 57,565 Depreciation expenses $-414 $-414 $-414 $-414 $-414 $-414 $-414 $-414 $-414 $-414 $-414 $-414 $ -4,972 Total SG&A Expense (without depreciation) $ 4,383 $ 4,407 $ 4,407 $ 4,407 $ 4,407 $ 4,416 $ 4,424 $ 4,436 $ 4,461 $ 4,489 $ 4,534 $ 4,575 $53,347 Predominant factor of SG&A expense is Fixed cost accompanied by depreciation.
Budget Plan -SG&A Expense BudgetIDEA Camera Cash Budget For the First Year Ending December, 2017 January February March April May June July August September October November December Annual Total Budgeted sales $- $ 1,800 $ 1,800 $ 1,800 $ 1,800 $ 2,400 $ 3,000 $ 3,900 $ 5,700 $ 7,800 $11,100 $14,100 $ 55,200 Cash balance, beginning $ 70,000 $57,086 $52,410 $48,943 $45,476 $42,009 $38,534 $35,454 $32,765 $30,656 $29,728 $30,165 $ 513,226 Collections on sales Credit sales Current month (0% credit sales) $- $- $- $- $- $- $- $- $- $- $- $- $ - Prior month (99% credit sales) $- $- $1,782 $1,782 $1,782 $1,782 $2,376 $2,970 $3,861 $5,643 $7,722 $ 10,989 $40,689 Total $- $- $1,782 $1,782 $1,782 $1,782 $2,376 $2,970 $3,861 $5,643 $7,722 $ 10,989 $40,689 Cash available for operations $ 70,000 $57,086 $54,192 $50,725 $47,258 $43,791 $40,910 $38,424 $36,626 $36,299 $37,450 $41,154 $ 553,915 Disbursements Initial Cost Registration Fee $ 630 $- $- $- $- $- $- $- $- $- $- $- $630 Legal Support Fee $2,000 $- $- $- $- $- $- $- $- $- $- $- $ 2,000 Procurement of Equipment (Overhead) $1,539 $- $- $- $- $- $- $- $- $- $- $- $ 1,539 Procurement of Equipment (SG&A) $3,019 $- $- $- $- $- $- $- $- $- $- $- $ 3,019 Down payment for Office / Utility Cost (Overhead) $ 538 $- $- $- $- $- $- $- $- $- $- $- $538 Down payment for Office / Utility Cost (SG&A) $ 538 $- $- $- $- $- $- $- $- $- $- $- $538 Total $8,263 $- $- $- $- $- $- $- $- $- $- $- $ 8,263 Purchases Current month (0% purchases) $- $- $- $- $- $- $- $- $- $- $- $- $ - Prior month (100% purchases) $- $- $ 573 $ 573 $ 573 $ 573 $ 763 $ 954 $1,241 $1,813 $2,481 $3,531 $13,075 Total $- $- $ 573 $ 573 $ 573 $ 573 $ 763 $ 954 $1,241 $1,813 $2,481 $3,531 $13,075 Other Material Overhead (without depreciation) $ 269 $ 269 $ 269 $ 269 $ 269 $ 269 $ 269 $ 269 $ 269 $ 269 $ 269 $ 269 $ 3,225 Other SG&A Expense (without depreciation) $4,383 $4,407 $4,407 $4,407 $4,407 $4,416 $4,424 $4,436 $4,461 $4,489 $4,534 $4,575 $53,347 Total $12,914.29 $4,676.14 $5,248.76 $5,248.76 $5,248.76 $5,256.95 $5,456.02 $5,659.19 $5,970.09 $6,571.40 $7,284.54 $8,375.32 $ 77,910 Excess cash available over disbursements $ 57,086 $ 52,410 $ 48,943 $ 45,476 $ 42,009 $ 38,534 $ 35,454 $ 32,765 $ 30,656 $ 29,728 $ 30,165 $ 32,779 $476,005 Cash balance, ending $ 57,086 $52,410 $48,943 $45,476 $42,009 $38,534 $35,454 $32,765 $30,656 $29,728 $30,165 $32,779 $ 476,005 We will reach to Break Even Point in October for the first year. Initial investment is assumed as $70,000 $8,263 is cashed out as an initial cost
Budget Plan -Income Statement (FY1) IDEA Camera Budgeted Income Statement For the First Year Ending December, 2017 Sales $ 55,200 Cost of Goods Sold Beginning inventory $ - Purchases $ 17,560 Manufacturing Overhead $ 3,963 Cost of merchandise available $ 21,523 Ending inventory $ - $ -21,523 Gross profit $ 33,677 Other expenses Bad debt (1% of credit sales) $ 552 Selling, General and Administrative expense $ 61,487 $ -62,039 Income from operations $ -28,362 Interest expense $ - Net income from operations $ -28,362 Income taxes $ - Net income $ -28,362Though we may be able to reach to Break Even Point in the first year, the net income is still negative
Budget Plan -Income Statement (FY2) IDEA Camera Budgeted Income Statement For the Second Year Ending December, 2018 Sales $ 397,500 Cost of Goods Sold Beginning inventory $ - Purchases $ 126,452 Manufacturing Overhead $ 3,425 Cost of merchandise available $ 129,877 Ending inventory $ - $ -129,877 Gross profit $ 267,623 Other expenses Bad debt (1% of credit sales) $ 3,975 Selling, General and Administrative expense $ 62,996 $ -66,971 Income from operations $ 200,651 Interest expense $ - Net income from operations $ 200,651 Income taxes $ - Net income $ 200,651 For the next Year, we have positive Net Income
Budget Plan -Balance Sheet (FY1) IDEA Camera Budgeted Balance Sheet December 31, 2017 Assets Current assets Cash $ 27,842 Accounts receivable, net $ 13,959 Merchandise inventory $- $ 41,801 Fixed assets Equipment(Overhead) $ 1,539 Less accumulated depreciation $ 200 $ 1,339 Equipment (SG&A) $ 3,019 Less accumulated depreciation $ 4,972 $ -1,953 Total Assets $ 41,187 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 4,485 Taxes payable $- $ 4,485 Stockholders' equity Capital stock $ 70,000 Retained earnings $-33,298 $ 36,702 Total liabilities and stockholders' equity $ 41,187 At the year-end of FY1, our current asset is around $40,000
Budget Plan -Expected Financial Growth $-100,000 $- $100,000 $200,000 $300,000 $400,000 $500,000 FY1 FY2 FY3 Finantial Growth Net Income Retained Earnings Working Capital
Budget Plan -Expected Financial Profitability Net Profit Margin= Net Income / Sales Return On Asset = Net Income / Average Total Assets Return On Equity = Net Income / Average Stockholders Equity -1.00 -0.50 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 FY1 FY2 FY3 Profitability Net Profit Margin Return On Asset Return On Equity Example of TOYOTA as of Dec.31,2015 Net Profit Margin: 8.56% ROA: 4.82% ROE: 13.71%
Exit Strategy Business liquidation decision after one year of operation One year is long enough to understand market and to try changes to marketing structure Closing Options: Liquidation of assets and paying investors Selling business to another company
Contents Business Model Financial Analysis Evaluation
Evaluation If assumptions are correct then it would be a good business. There still needs to be a lot of design on the camera body and possibly teaching exercises and manuals.

More Related Content

IDEA Camera for Education

  • 1. ACCT6215 Managerial Accounting IDEA Camera Open Source Gadget for Education Anna Tumlinson Shunjiro Yatsuzuka
  • 2. Contents Business Model Mission Product Description Market Position Business Operation Financial Analysis Evaluation
  • 3. Mission To enable students of innovation and technology to discover all the possibilities with programmable devices connected to the cloud technology.
  • 4. Product Description - Internet of Things (IoT) Easy platform for everybody to learn the technology and engineering with gadget connected to the cloud Open source software Uses single board computer Raspberry Pi Embedded software which captures images and transfers them into AWS Backend server which takes charge of work order management for Big Data Analytics.
  • 5. Product Description - Architecture RasberryPIVisibleCamera CameraCase AmazonWebService PC Mobile Image Software (Front-end) Software (back-end) WebService
  • 6. Product Description - Hardware Raspberry Pi and Pi Camera 123D Design to create STL model for camera case (To Be Designed)
  • 7. Product Description - Hardware The case for the camera will be 3-D printed MakerBot Replicator Mini Compact 3D Printer $902.79 Initial cost Filament material will be an indirect cost
  • 8. Product Description - Software Overview - DevPost http://devpost.com/software/nb-platform-for-iot GitHub https://github.com/nasebanal/nb-device4iot https://github.com/nasebanal/nb-platform4iot Dashboard Work Order Management
  • 9. Market Position High School students 16,654,000 .005% = 832.7 Students College students 19,175,000 .01% = 1918 Students Other .001% = 1990 Students
  • 10. Business Operation - Operation Policy No Category Item Description 1 Cost Allocation Manufacturing Cost Costing method for manufacturing cost Product Costing Period Costing 2 SG&A Cost Costing method for SG&A cost Product Costing Period Costing 3 Product Costing Costing approach for product costing Job Costing Process Costing (No trace to process) 4 Application Base Application Base for factory overhead Quantity Labor Hour 5 Spoilage / Warranty Cost recognition Cost recognition of Spoilage / Warranty Product Cost Period Cost 6 Budgeting Probability Probability of Spoilage / Warranty Expense 2% - 7 Inventory Ordering Policy JIT Not JIT 8 Inventory Safety Stock Level 0 - 9 Other Cost ABS Filament Cost tyep of material for 3D printer Direct Material Indirect Material 10 Other Cost Depreciation Model Straight Line Other Option
  • 11. Business Operation - Operation Flow Sales & Marketing Inventory Hardware Software Quality Assurance Service Production Operation Check Sales Order (RecordSO to Quickbooks) Check Inventory Put Purchase Order (RecordPO to Quickbooks) AssembleProduct Print CameraCase Setup Server Deliver the products (RecordSales to Quickbooks) QB QB QB One step production and we assume we dont have any WIP.
  • 12. Contents Business Model Financial Analysis Incorporation Location & Rent Cost Structure Break Even Analysis Performance Forecast Budget Plan Exit Strategy Evaluation
  • 13. Incorporation Item Description Organization Type S Corp Initial Employees Full-time: 2people Part-time: 2people (Number of staff will change depending on the manufacturing volume) Equity Common Stock: $70,000 Business Registration Fee $630 Upfront Legal Fee $2,000
  • 14. Location & Rent Address 1850 San Leandro Blvd.San Leandro, CA 94577 Space 312 square feet Space for manufacturing 156 square feet Space for administration - 156 square feet Rate $1.4 / square feet / month = $437.57 / month in rent Lease type Modified gross 1 year min lease Date available Dec, 2015 Utilities $100/ month
  • 16. Cost Structure - Direct Material Direct Material Direct Labor Variable Overhead COGM Variable Selling Expense Fixed Overhead Fixed Selling Expense SG&A Item Unit Cost (Original Cost) Raspberry Pi $36.5 Wifi USB Adapter $9.99 Power Supply $7.99 Micro SD Card $9.04 Pi Camera $22.4 Total $85.47 Variable G&A Expense Fixed G&A Expense
  • 17. Cost Structure - Direct Labor Item Unit Cost (Original Cost) Hardware Engineer $15/hour 0.2hour per unit $3 ($15) Software Engineer $15/hour 0.2hour per unit $3 ($15) Total $6 Direct Material Direct Labor Variable Overhead COGM Variable Selling Expense Fixed Overhead Fixed Selling Expense SG&A Variable G&A Expense Fixed G&A Expense
  • 18. Cost Structure - Variable Overhead Item Unit Cost (Original Cost) ABS Filament $0.47 ($47) Printer Toner $0.45 ($44.56) Paper for manual $0.05 ($14.99) Quality Assurance Engineer $15/hour 0.2hour per unit $3.0 ($15) Total $3.97 Direct Material Direct Labor Variable Overhead COGM Variable Selling Expense Fixed Overhead Fixed Selling Expense SG&A Variable G&A Expense Fixed G&A Expense
  • 19. Cost Structure - Fixed Overhead Item Period Cost (Original Cost) Desk $0.83 / mo ($99) Desk chair $0.33 / mo ($40) Laptop $7.83 / mo ($469.99) 3D printer $7.52 / mo ($902.79) Regular Printer $0.08 / mo ($19.94) Industrial Tool $0.06 / mo ($6.89) Office Space $218.79 / mo ($437.57) Utility $50 / mo ($100) Total $285.44 Direct Material Direct Labor Variable Overhead COGM Variable Selling Expense Fixed Overhead Fixed Selling Expense SG&A Variable G&A Expense Fixed G&A Expense
  • 20. Cost Structure - Variable Selling Expense Item Unit Cost (Original Cost) Amazons selling Fee $1 Cardboard $1 Warranty Expense $2.10 ($104.95) Total $4.10 Direct Material Direct Labor Variable Overhead COGM Variable Selling Expense Fixed Overhead Fixed Selling Expense SG&A Variable G&A Expense Fixed G&A Expense
  • 21. Cost Structure - Fixed Selling Expense Item Period Cost (Original Cost) Amazon.com Selling Cost $39.99 / mo ($39.99) Total $39.99 Direct Material Direct Labor Variable Overhead COGM Variable Selling Expense Fixed Overhead Fixed Selling Expense SG&A Variable G&A Expense Fixed G&A Expense
  • 22. Cost Structure - Variable G&A Expense Item Unit Cost (Original Cost) (None) - Direct Material Direct Labor Variable Overhead COGM Variable Selling Expense Fixed Overhead Fixed Selling Expense SG&A Variable G&A Expense Fixed G&A Expense
  • 23. Cost Structure - Fixed G&A Expense (1/3) Item Period Cost (Original Cost) Labor Management $30/hour Labor Hour / month: 40 $1,200 / mo ($30) Labor Sales&Marketing $15/hour Labor Hour / month: 80 $1,200 / mo ($15) Labor Inventory $15/hour Labor Hour / month: 20 $300 / mo ($15) Labor Accounting $15/hour Labor Hour / month: 20 $300 / mo ($15) Lawyer fee $41.67 / mo ($500) CPA fee $41.67 / mo ($500) Direct Material Direct Labor Variable Overhead COGM Variable Selling Expense Fixed Overhead Fixed Selling Expense SG&A Variable G&A Expense Fixed G&A Expense
  • 24. Cost Structure - Fixed G&A Expense (2/3) Item Period Cost (Original Cost) Desk $0.83 / mo ($99) Desk chair $0.33 / mo ($40) Desktop Computer $12.50 / mo ($749.99) Phone $0.25 / mo ($30) Printer $0.42 / mo ($100) Payroll Service $50 / mo ($50) Quickbooks Online $39.95 / mo ($39.95) Hosting service $5 / mo ($5) Office Rent $218.79 / mo ($437.57) Utility $50 / mo ($100) Direct Material Direct Labor Variable Overhead COGM Variable Selling Expense Fixed Overhead Fixed Selling Expense SG&A Variable G&A Expense Fixed G&A Expense
  • 25. Cost Structure - Fixed G&A Expense (3/3) Item Period Cost (Original Cost) Business Card $5 / mo ($5) Stationary $20 / mo ($20) Telephone $50 ($50) Internet Service $50 ($50) Postage Cost $10 ($10) Training Cost $50 ($50) Recruiting Cost $20 ($20) Amazon Web Service for R&D $6.1 ($12.2) Desktop Computer for R&D $400 ($2,000) Health Insurance $320 ($160) Total $4,392.49 Direct Material Direct Labor Variable Overhead COGM Variable Selling Expense Fixed Overhead Fixed Selling Expense SG&A Variable G&A Expense Fixed G&A Expense
  • 26. Cost Structure - Tax & Benefit Item Period Cost (Original Cost) FICA / Social Security Tax (6.2%) $202.74 FICA / Medicare Tax (1.45%) $47.42 Unemployment Insurance (3.4%) $111.18 Employment Training Tax (0.1%) $3.27 Total $364.61 Direct Material Direct Labor Variable Overhead COGM Variable Selling Expense Fixed Overhead Fixed Selling Expense SG&A Variable G&A Expense Fixed G&A Expense
  • 27. Break Even Analysis Selling Price $300.00 Variable Cost $99.53 Contribution Margin $200.47 Fixed Cost $5,082.53 BEP 25 Sales Price is determined based on Cost-Plus Pricing so that we can meet the break even point in allowable duration for working capital management. As the result, our Break Even Point is 25.
  • 28. Performance Forecast -Approach Whole Market Target Share Duration for convergence Numerical Model High School Students 16,654,000 0.005% 7years Modified Gompertz Curve College Students 19,175,000 0.01% 5years (Early Adapter) Modified Gompertz Curve Other 188,999,000 0.001% 10years (Late Majority) Modified Gompertz Curve 基 = + ( ) a: displacement along the x-axis b: growth rate c: asymptone r: mixture proportion between gompertz curve and linear model
  • 30. 0 1,000 2,000 3,000 4,000 5,000 6,000 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 100 103 106 109 112 115 118 121 SalesVolume[units] Projected Sales Cumulative High School College Students Other Performance Forecast Year end of FY1 Sales Volume: 47 Cumulative Volume: 184 Year end of FY2 Sales Volume: 131 Cumulative Volume: 1,509 Year end of FY3 Sales Volume: 92 Cumulative Volume: 2,847
  • 31. Budget Plan Sales Budget Cash Budet PurchaseBudget Selling, General Administrative Expense Budget Pro Forma Statements
  • 32. Budget Plan -Sales & Purchase Budget IDEA Camera Purchases Budget For the First Year Ending December, 2017 January FebruaryMarch April May June July August Septemb er October November December Annual Total Budgeted sales $- $ 1,800 $ 1,800 $ 1,800 $ 1,800 $ 2,400 $ 3,000 $ 3,900 $ 5,700 $ 7,800 $ 11,100 $ 14,100 $55,200 Current Variable Cost $- $ 573 $ 573 $ 573 $573 $763 $954 $1,241 $1,813 $2,481 $ 3,531 $ 4,485 $ 17,560 Desired ending inventory $- $- $- $- $ - $ - $ - $ - $ - $ - $ - $ - $- Total needs $- $ 573 $ 573 $ 573 $573 $763 $954 $1,241 $1,813 $2,481 $ 3,531 $ 4,485 $ 17,560 Less beginning inventory $- $- $- $- $ - $ - $ - $ - $ - $ - $ - $ - $- Purchases $- $ 573 $ 573 $ 573 $ 573 $ 763 $ 954 $ 1,241 $ 1,813 $ 2,481 $ 3,531 $ 4,485 $17,560 For the first month, we assume we dont have any sales. Company has JIT for their ordering policy, therefore, we assume we dont have any inventory
  • 33. Budget Plan -SG&A Expense Budget IDEA Camera Selling, General and Administrative Expense Budget For the First Year Ending December, 2017 January February March April May June July August Septembe r October November December Annual Total Budgeted sales $- $ 1,800 $ 1,800 $ 1,800 $ 1,800 $ 2,400 $ 3,000 $ 3,900 $ 5,700 $ 7,800 $ 11,100 $ 14,100 $55,200 Variable SG&A expenses $ - $ 25 $ 25 $ 25 $ 25 $ 33 $ 41 $ 53 $ 78 $107 $152 $193 $ 754 Fixed SG&A expenses $4,797 $4,797 $4,797 $4,797 $4,797 $4,797 $4,797 $4,797 $ 4,797 $ 4,797 $ 4,797 $ 4,797 $ 57,565 Depreciation expenses $-414 $-414 $-414 $-414 $-414 $-414 $-414 $-414 $-414 $-414 $-414 $-414 $ -4,972 Total SG&A Expense (without depreciation) $ 4,383 $ 4,407 $ 4,407 $ 4,407 $ 4,407 $ 4,416 $ 4,424 $ 4,436 $ 4,461 $ 4,489 $ 4,534 $ 4,575 $53,347 Predominant factor of SG&A expense is Fixed cost accompanied by depreciation.
  • 34. Budget Plan -SG&A Expense BudgetIDEA Camera Cash Budget For the First Year Ending December, 2017 January February March April May June July August September October November December Annual Total Budgeted sales $- $ 1,800 $ 1,800 $ 1,800 $ 1,800 $ 2,400 $ 3,000 $ 3,900 $ 5,700 $ 7,800 $11,100 $14,100 $ 55,200 Cash balance, beginning $ 70,000 $57,086 $52,410 $48,943 $45,476 $42,009 $38,534 $35,454 $32,765 $30,656 $29,728 $30,165 $ 513,226 Collections on sales Credit sales Current month (0% credit sales) $- $- $- $- $- $- $- $- $- $- $- $- $ - Prior month (99% credit sales) $- $- $1,782 $1,782 $1,782 $1,782 $2,376 $2,970 $3,861 $5,643 $7,722 $ 10,989 $40,689 Total $- $- $1,782 $1,782 $1,782 $1,782 $2,376 $2,970 $3,861 $5,643 $7,722 $ 10,989 $40,689 Cash available for operations $ 70,000 $57,086 $54,192 $50,725 $47,258 $43,791 $40,910 $38,424 $36,626 $36,299 $37,450 $41,154 $ 553,915 Disbursements Initial Cost Registration Fee $ 630 $- $- $- $- $- $- $- $- $- $- $- $630 Legal Support Fee $2,000 $- $- $- $- $- $- $- $- $- $- $- $ 2,000 Procurement of Equipment (Overhead) $1,539 $- $- $- $- $- $- $- $- $- $- $- $ 1,539 Procurement of Equipment (SG&A) $3,019 $- $- $- $- $- $- $- $- $- $- $- $ 3,019 Down payment for Office / Utility Cost (Overhead) $ 538 $- $- $- $- $- $- $- $- $- $- $- $538 Down payment for Office / Utility Cost (SG&A) $ 538 $- $- $- $- $- $- $- $- $- $- $- $538 Total $8,263 $- $- $- $- $- $- $- $- $- $- $- $ 8,263 Purchases Current month (0% purchases) $- $- $- $- $- $- $- $- $- $- $- $- $ - Prior month (100% purchases) $- $- $ 573 $ 573 $ 573 $ 573 $ 763 $ 954 $1,241 $1,813 $2,481 $3,531 $13,075 Total $- $- $ 573 $ 573 $ 573 $ 573 $ 763 $ 954 $1,241 $1,813 $2,481 $3,531 $13,075 Other Material Overhead (without depreciation) $ 269 $ 269 $ 269 $ 269 $ 269 $ 269 $ 269 $ 269 $ 269 $ 269 $ 269 $ 269 $ 3,225 Other SG&A Expense (without depreciation) $4,383 $4,407 $4,407 $4,407 $4,407 $4,416 $4,424 $4,436 $4,461 $4,489 $4,534 $4,575 $53,347 Total $12,914.29 $4,676.14 $5,248.76 $5,248.76 $5,248.76 $5,256.95 $5,456.02 $5,659.19 $5,970.09 $6,571.40 $7,284.54 $8,375.32 $ 77,910 Excess cash available over disbursements $ 57,086 $ 52,410 $ 48,943 $ 45,476 $ 42,009 $ 38,534 $ 35,454 $ 32,765 $ 30,656 $ 29,728 $ 30,165 $ 32,779 $476,005 Cash balance, ending $ 57,086 $52,410 $48,943 $45,476 $42,009 $38,534 $35,454 $32,765 $30,656 $29,728 $30,165 $32,779 $ 476,005 We will reach to Break Even Point in October for the first year. Initial investment is assumed as $70,000 $8,263 is cashed out as an initial cost
  • 35. Budget Plan -Income Statement (FY1) IDEA Camera Budgeted Income Statement For the First Year Ending December, 2017 Sales $ 55,200 Cost of Goods Sold Beginning inventory $ - Purchases $ 17,560 Manufacturing Overhead $ 3,963 Cost of merchandise available $ 21,523 Ending inventory $ - $ -21,523 Gross profit $ 33,677 Other expenses Bad debt (1% of credit sales) $ 552 Selling, General and Administrative expense $ 61,487 $ -62,039 Income from operations $ -28,362 Interest expense $ - Net income from operations $ -28,362 Income taxes $ - Net income $ -28,362Though we may be able to reach to Break Even Point in the first year, the net income is still negative
  • 36. Budget Plan -Income Statement (FY2) IDEA Camera Budgeted Income Statement For the Second Year Ending December, 2018 Sales $ 397,500 Cost of Goods Sold Beginning inventory $ - Purchases $ 126,452 Manufacturing Overhead $ 3,425 Cost of merchandise available $ 129,877 Ending inventory $ - $ -129,877 Gross profit $ 267,623 Other expenses Bad debt (1% of credit sales) $ 3,975 Selling, General and Administrative expense $ 62,996 $ -66,971 Income from operations $ 200,651 Interest expense $ - Net income from operations $ 200,651 Income taxes $ - Net income $ 200,651 For the next Year, we have positive Net Income
  • 37. Budget Plan -Balance Sheet (FY1) IDEA Camera Budgeted Balance Sheet December 31, 2017 Assets Current assets Cash $ 27,842 Accounts receivable, net $ 13,959 Merchandise inventory $- $ 41,801 Fixed assets Equipment(Overhead) $ 1,539 Less accumulated depreciation $ 200 $ 1,339 Equipment (SG&A) $ 3,019 Less accumulated depreciation $ 4,972 $ -1,953 Total Assets $ 41,187 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 4,485 Taxes payable $- $ 4,485 Stockholders' equity Capital stock $ 70,000 Retained earnings $-33,298 $ 36,702 Total liabilities and stockholders' equity $ 41,187 At the year-end of FY1, our current asset is around $40,000
  • 38. Budget Plan -Expected Financial Growth $-100,000 $- $100,000 $200,000 $300,000 $400,000 $500,000 FY1 FY2 FY3 Finantial Growth Net Income Retained Earnings Working Capital
  • 39. Budget Plan -Expected Financial Profitability Net Profit Margin= Net Income / Sales Return On Asset = Net Income / Average Total Assets Return On Equity = Net Income / Average Stockholders Equity -1.00 -0.50 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 FY1 FY2 FY3 Profitability Net Profit Margin Return On Asset Return On Equity Example of TOYOTA as of Dec.31,2015 Net Profit Margin: 8.56% ROA: 4.82% ROE: 13.71%
  • 40. Exit Strategy Business liquidation decision after one year of operation One year is long enough to understand market and to try changes to marketing structure Closing Options: Liquidation of assets and paying investors Selling business to another company
  • 41. Contents Business Model Financial Analysis Evaluation
  • 42. Evaluation If assumptions are correct then it would be a good business. There still needs to be a lot of design on the camera body and possibly teaching exercises and manuals.