Rs.

Total demand in product category 2,000,000 (assumptions)

market share 20%

total sales target 400000
market information
Unit Effect on sales cost
price 1 20,000
promotion 1 30,000 50,000
place 1 10,000 20,000
Average price in market 200

Simulation decision selling price sales effect

price of market -60 140 1,200,000
promotion 1 30,000
place 2 20,000
1,250,000

Revenue 1,250,000
COGS 1,041,667
Marketing expenses 90,000
total costs 1,131,667
profit/loss 118,333

Fixed assests 1,000,000

working capital
1. raw material inventroy 260,417
2. credit sales 86,805.56
3. cash for operation 7,500
Total working capital 354,722.22
Total capital 1,354,722.22

capital structure:
equity 60% 812,833.33
loan 40% 541,888.89
1,354,722.22

Interest on loan 15% 81,283.33

ROI 0.0873487799877
ROE 0.1455812999795

break even point (BEP) FC=mkt cost + interest

FC/(S-VC) 0.82

Interpretation:
cost of marketing

50,000
40,000
90,000

sp 150
cp 125 0.833333
profit margin in rs 25