Start Up Costs

Item

Price

Website

$50.00

Branding:

Marketing Cost

$944.26

Business License

$510.00

Patent

$2,500

Total:

$4,004.26

Selling Price Of TREDTRAX

Materials + Labor + Markup = Cost

Materials

$18.17

Labor

$66.83

Markup

$65.00

Total:

$150.00

Materials + Labor + Markup = Cost

Materials: $18.17

Labor: $66.83

Mark Up: $65.00

Total: $150.00

Pricing

        

Our company is selling our licensed partnership for $300,000 and a royalty of $8.00 per tire. We want to remain exclusive to one buyer and keep the product away from their competitors.

                

Market Cost

Product Name

Price

Quantity

Total

Pen

$0.54

250

$134.50

Tech Pocket

$1.80

100

$180.00

Drawstring Bag

$1.19

144

$171.36

Set-Up Charge

$35.00

1

$35.00

LED Keychain

$2.26

100

$274.29

Banner

$130.00

1

$130.00

Business Cards

$0.19

100

$19.11

Total:                                                                                                          $944.26

Break Even Analysis

Total Sales equals total expenses

Expenses = sales

(Start-up Costs + Variable Costs)= (Price) (X Units Sold)

$852,053.35 = ($600/Unit)(X Units)

1,420 = Units Sold

Set cost

$340.00 per unit of 4 tires

Start-up costs (Fixed Costs)

$4,004.26

Expected Sales 1 year

2,500 sets

Price

$600 (price of 4 tires)

Total Revenue

$450,000.00

Total Variable Cost

$850,000.00

Projected Cash Flow (year 1)

Total cash in

Sales (refer to Sales Forecast)

$450,000.00

Total

$450,000.00

Total Cash Out

Total Cost

$ 0.00

Total Expenses

$4,004.26

Total

$4,004.26

 

Three Year projection

We will sell this technology one time exclusive offer for $750,000 and receive a royalty of $8.00 per tire.

Year 1

Year 2

Year 3

Unit Sales

10,000

25,000

55,000

Unit Sales Value

$150.00

$155.00

$165.00

Profit percentage going to TredTrax

$8.00

$8.00

$8.00

Sales Revenue

$ 80,000

$ 200,000

$ 440,000

Unit Cost

$85.00

$85.00

$85.00

Total Profit Pre-expenses

$ 80,000

$ 200,000

$ 440,000

Business Expenses

$ 914.26

$5,000

$10,000

Total profit

$449,000

$1,351,250

$4,527,500

Initial Balance Sheet 

Assets

Current Account

Cash

0

Less: Reserve for Bad Debt

-

-

Merchandise Inventory

$914.26

Prepaid Expenses

-

Notes Receivable

-

Total Current Assets

$4,004.26

Other Assets:

Startup Costs

$1,494.26

Total Other Assets

$0.00

Total Assets

$4,004.26

Liabilities and Capital

Current Liabilities

-

Accounts Payable

-

Sales Tax Payable

-

Payroll Taxes Payable

-

Accrued Wages Payable

-

Unearned Revenues

-

Short-Term Notes Payable

-

Short-Term Bank Loan Payable

Total Current Liabilities

Long Term Liabilities

Long-Term Notes Payable

-

Mortgage Payable

-

Total Long-Term Liabilities

-

Total Liabilities

Capital:

$750,000

Owner’s Equity

Net Profit (loss)

$4,004.26

Total Capital

$1,200,000

Total Liabilities and Capital

$450,000