Popple Beverage Company <ul><li>Popple is a new beverage company that provides healthy and delicious fruit juices for all...
Our Location
Organization Chart
Our Products and their prices <ul><li>Strappleberry , is a mixture of strawberry and apple juices. Peachymelon , is a com...
Our marketing plan <ul><li>Our money will be provided by the owners' savings, bank loans, selling debentures (long-term lo...
General Assumptions <ul><li>Popple Beverage Company assumes the sales revenue will be a flat curve at first because we are...
Break-even Analysis <ul><li>Fixed costs = AED 10,000 per year </li></ul><ul><li>Variable costs = AED 1.00 per unit of outp...
Projected Profit + Loss <ul><li>The profit and loss account shows how net profit is calculated. It begins with the Gross p...
Projected Cash Flow 2 200 2 200 2 200 Total cash outflows: 26 400 21 600 17 800 Closing bank balance 4 800 3 800 2 800 Net...
Projected Balance Sheet <ul><li>The Balance Sheet shows Popple Beverage Company’s value of assets and liabilities at a p...
Business Ratios <ul><li>PERFORMANCE RATIOS: </li></ul><ul><li>Return on net assets (%) = Operating Profit x 100 </li><...
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Popple Beverage Company

Published on: Mar 4, 2016
Published in: Business      Economy & Finance      
Source: www.slideshare.net


Transcripts - Popple Beverage Company

  • 1. Popple Beverage Company <ul><li>Popple is a new beverage company that provides healthy and delicious fruit juices for all ages. It is one of the first in Dubai. Our juices are affordable and come in a variety of different flavors. </li></ul><ul><li>The Popple Beverage Company has been approved by the Dubai Food & Beverage Certification (DBFC). We have good relationships with our suppliers which supply us with resources. Our target audience is young teenagers. We are willing to fill the market gap in order to be successful.  </li></ul>
  • 2. Our Location
  • 3. Organization Chart
  • 4. Our Products and their prices <ul><li>Strappleberry , is a mixture of strawberry and apple juices. Peachymelon , is a combination of peaches and watermelon juices. Coconana – a mixture of coconut and banana flavors. We also provide individual flavors such as Orange, Peach, Apple, Kiwi, Watermelon, Grape, Pineapple and other various fruits .  </li></ul><ul><li>Each 100ml bottle is sold at AED 2.50 </li></ul><ul><li>Each 45ml bottle is sold at AED 5.00 </li></ul><ul><li>Each 1 liter bottle is sold at AED 8.50 </li></ul>
  • 5. Our marketing plan <ul><li>Our money will be provided by the owners' savings, bank loans, selling debentures (long-term loan certificates issued by limited companies), and we have arranged to recieve overdrafts with banks. </li></ul><ul><li>Our customers will consist of teenagers, mothers who want our product for their children. </li></ul><ul><li>Our factory will be located in industrial areas close to cities, but our product will be sold in populated areas. </li></ul><ul><li>Our promotion will take the form of providing free samples of juices in grocery stores, malls and places of entertainment where our target audience will be present. Also, we would like to advertise on television on TV shows that teenagers watch.   </li></ul>
  • 6. General Assumptions <ul><li>Popple Beverage Company assumes the sales revenue will be a flat curve at first because we are still new in the market. After we spend large amounts of money on advertising, it is likely, that is successful, we will be making revenue and then eventually profit. </li></ul>
  • 7. Break-even Analysis <ul><li>Fixed costs = AED 10,000 per year </li></ul><ul><li>Variable costs = AED 1.00 per unit of output </li></ul><ul><li>Product is sold at AED 2.50 </li></ul><ul><li>The factory can produce a maximum output of 2,000 bottles per year </li></ul><ul><li>The break-even point of production is where total costs and total revenues cross. Popple must, therefore, sell 1,000 bottles of juice in order to avoid making a loss. Maximum profit is made when maximum output is reached. </li></ul><ul><li>The calculation method of break-even point is: </li></ul><ul><li>Selling Price – Variable Costs = Profit </li></ul><ul><li>2.50 – 1.00 = 1.50 </li></ul><ul><li>The average cost per unit will be: </li></ul><ul><li>Total Cost ÷ Output = 12 000 ÷ 5 000 = AED 2.45 per bottle </li></ul>
  • 8. Projected Profit + Loss <ul><li>The profit and loss account shows how net profit is calculated. It begins with the Gross profit. </li></ul><ul><li>Sales turnover AED 5 000 </li></ul><ul><li>Cost of sales - AED 2 000 </li></ul><ul><li>GROSS PROFIT = AED 3 000 </li></ul><ul><li>Expenses:- </li></ul><ul><li>Wages AED 600 </li></ul><ul><li>Electricity AED 100 </li></ul><ul><li>Rent AED 200 </li></ul><ul><li>Advertising AED 500 </li></ul><ul><li> = AED 1 400 </li></ul><ul><li>NET PROFIT = AED 3 000 – 1 400 </li></ul><ul><li> = AED 1 600 </li></ul>
  • 9. Projected Cash Flow 2 200 2 200 2 200 Total cash outflows: 26 400 21 600 17 800 Closing bank balance 4 800 3 800 2 800 Net cash flow 200 200 200 Rent 2 000 2 000 2 000 Raw materials Cash outflows: 7 000 6 000 5 000 Total cash inflows: 7 000 6 000 5 000 Cash sales Cash Inflows: 21 600 17 800 15 000 Opening bank balance March February January
  • 10. Projected Balance Sheet <ul><li>The Balance Sheet shows Popple Beverage Company’s value of assets and liabilities at a particular time. </li></ul><ul><li>Assets are those items which are owned by Popple. </li></ul><ul><li>Liabilities are items owed by Popple to other business. </li></ul>AED 1 160 Capital employed AED 300 Long-term liabilities AED 500 + 360 = AED 860 Shareholders’ funds AED 1 160 Net assets AED 10 Working capital AED 130 Current liabilities AED 140 Current Assets AED 1 150 Fixed Assets
  • 11. Business Ratios <ul><li>PERFORMANCE RATIOS: </li></ul><ul><li>Return on net assets (%) = Operating Profit x 100 </li></ul><ul><li>Net Assets </li></ul><ul><li>Gross profit margin (%) = Gross profit x 100 </li></ul><ul><li>Sales turnover </li></ul><ul><li>Net profit margin (%) = Net profit after tax x 100 </li></ul><ul><li>Sales turnover </li></ul><ul><li>LIQUIDITY RATIOS: </li></ul><ul><li>Current ratio = Current assets </li></ul><ul><li>Current liabilities </li></ul><ul><li>Acid test/liquid ratio = Current assets – stocks </li></ul><ul><li>Current liabilities </li></ul><ul><li>Stock turnover ratio = Cost of sales </li></ul><ul><li>Stocks </li></ul>

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