In summary, the price of our product is way cheaper compared to other product with an approximately 43.1% lower than the cheapest current product which is Leo II. Our product also has two function which can stand and recline, something some of the current product lacks like Wisking Stand Electric Wheelchair. Furthermore, our wheelchair can support up to 150 kg which is quite height and lightweight beca

If we planned to earn a profit of 50%, selling price for a unit would be.

= RM 3735.34 x1.5

= RM 5603.01

We sell it for RM5603.00 that requires 10 hours to fabricate and assemble. So, it would take about 1.25 days to complete it. Therefore, an approximate of 16 products can be produce in a month and about 960 products in 5 years. Return of Investment (RoI) is calculated for 5years, with an assumption of 960 units are sold at RM5603 throughout this 5 year.

 

 

 

Fixed Cost:

Rental of workshop

=RM1500.00/month x 5years x 12months

=RM90000

Rental of machines

= RM4000.00/month x 5years x 12months

=RM240000

 

Variable cost:

Labor cost (5 workers)

= RM1500.00/month x 5 x 5years x 12months

= RM450000.00

Overhead cost

= RM650.00/month x 5years x 12months

= RM39000.00

Marketing

= RM500.00/month x 5years x 12months

= RM30000.00

Breakdown Cost

= RM500.00/month x 5years x 12months

= RM30000.00

All Components

= RM3194.44per machine x 16 x 5years x 12months

= RM3066662.40

 

 

Total Cost                  = RM3945662.40

Total Earning            = RM5378880.00

 

Return of Investment (ROI):

 

 

 

 

Average Annual Return = 36.3% / 5

                                       = 7.26%/year

use of the consideration taken when to apply the material.