QuantityPer UnitTotal
THE MARKETEst new home construction starts in year 20071,868,000$209,000.00$390,412,000,000.00
3% of new homes56,040$209,000.00$11,712,360,000.00
5% of new homes93,400$209,000.00$19,520,600,000.00
Remodeling expenditures in 2005$860,800,000,000.00
1ST YEAR EXPENSES Research and Development$105,000.00
Legal Fees$24,000.00
Marketing$40,000.00
Insurance$6,000.00
Contingencies$24,000.00
TOTAL FIRST YEAR EXPENSES$199,000.00
OVERHEADInterest on loan for the expenses at 20%0.20$199,000.00$39,800.00
Rent12$1,000.00$12,000.00
Travel expenses12$5,000.00$60,000.00
Salaries4$75,000.00$300,000.00
Contingencies12$1,000.00$12,000.00
TOTAL FIRST YEAR OVERHEAD$423,800.00
OVERHEAD+EXPENSESTOTAL FIRST YEAR OVERHEAD AND EXPENSES$622,800.00
PRICING/COSTS Estimated retail price per piece$20.00
Estimated cost of production per piece$10.00
3% OF THE NEW HOME MARKETIncome at 3% of the new house market56,040$10.00$560,400.00
ESTIMATED PROFIT/LOSS AFTER EXPENSES$62,400.00
Production per week1,078
100,000 PIECESIncome at 100,000 pieces100,000$10.50$1,050,000.00
ESTIMATED PROFIT AFTER EXPENSES AND 30% TAX$299,040.00
Production per week1,923
200,000 PIECESIncome at 200,000 pieces200,000$11.00$2,200,000.00
ESTIMATED PROFIT AFTER EXPENSES AND 30% TAX$1,104,040.00
Production per week3,846