Question

can you please help me out on creating this product and all it's costs? i'm very confused, thank you in advance!!!!

Please identify a product you will manufacture. Please complete the following steps for your product: 1) List at least twelve costs related to your product - you much use each category at least once. 2) Identify the per unit cost for each of your cost items. 3) Calcuate the Total product cost for your product. 4) Create a Sales price for your product. 5) Complete the following calculations for your product: a) Breakeven b) Breakeven with a Target profit c) Master budget with all important components included.

That is the full question, I have to create a product and include/create all that info for it

Answer 1

	Manufacturing of Mobile phone		In $
1	Raw Material		150.0
2	Accessories		30.0
3	Return waste		20.0
4	Fuel & Energy		18.0
5	Basic wage		50.0
6	Overtime wages		5.0
7	Machine depreciation		1.0
8	Production Dept salary		8.0
9	Machine repair		2.0
10	Factory insurance		0.5
11	Property Tax		0.3
12	Floor cleaning Expenses		0.2
	Manufacturing cost/unit	a	285.0
	Sales Price/unit	b	410.0
	Contribution / unit	c=b-a	125.0
	Fixed Selling / Administrative Expenses	d	5,00,000.0
	Break Even Sales (qty)	d/c	4,000.0
	Target Profit	e	2,50,000.0
	Contribution (Fixed Cost + Desired Profit)	f=d+e	7,50,000.0
	Break Even Sales (qty) with a Target Profit of $250,000		6,000

Master Budget with Important components :

1. Material Budget - This provides for acquiring raw material required for production, spare parts for maintenance, labor time, machine time and energy consumption. The labor time & machine time relates to output / unit of time

2. Liquidity budget - This budget forecasts the cash receipts and outlays for a given period of time. This is necessary to control income & expenditure to ensure that there is no cash shortage / excess cash in the system

3. Revenue & Expense Budget - Revenue budget shows the Product wise sales / Geographical territory wise sales related sales force deployment and Sales & Advertising Expense. The Expense Budget include Marketing Offices Rent, Utilities cost, Security & Administrative Expenses

4. Capital Expenditure Budget - This include the New Equipment Cost,Major installations, Replacement of Old Machinery, Building Renovations. This is broadly part of Long term Strategy & Planning of the Company in relation to future growth & expansion

5. Sales Budget - This is outcome of Sales forecast based on demand & supply situation, past trends & seasonal demand etc,.Sales forecasting is based on price trend, consumer purchasing power, economic situation,

6. Production Budget - This contains the plan for future manufacturing operations based on Sales forecast & Sales Budget, Mainly this include the volume of production based on production planning & cost component of the manufacturing product

7. Balance Sheet - A balance sheet is composite budget which reflects the anticipated assets & liabilities, net worth at the end of given period in future. It is forecast of financial status of the Company at a future date.It is combination of Net Working Capital which drive the Debtors / Creditors & Long term Assets & Liabilities