BUDGET:

The breakdown of cost for making each helmet is as follows:

Raw Material/Parts Price per unit

Air Bags Rs 500

Unbreakable glass Rs 200
Heat proof pad Rs 500
Bluetooth Rs 600
GPS Rs 2,000
LED Light Rs 400
Voice Management Rs 500
Back Camera Rs 1,000
Sensors Rs 1,000
RF Transmitter Rs 800
Labor Rs 500
Factory Expenses Rs 400

The profit earned per product is as follows:

Smart Helmet Smart Helmet Smart Helmet Smart Helmet

Lite INC PRO

Selling Price Rs 4,000 Rs 5,000 Rs 8,500 Rs 13,500

Total Cost Rs 2,100 Rs 2,700 Rs 5,100 Rs 8,400

Total Profit Rs 1,900 Rs 2,300 Rs 3,400 Rs 5,100

The cost of raw materials can reduce if we buy them in bulk quantity. However, the initial cost of the
production of Smart Helmet can’t be reduced any more at this stage. As the Brand Image can
also be effected if we lower these prices more.