1.

0 EXECUTIVE SUMMARY

1.1 Foxy Paesyeon will be a clothing production company managed by 10 partners

in Selangor. Foxy Paesyeon expects to catch the interest of a wide range of
customers by producing and selling our unique product which is knitwear clothing
in various styles and stylish designs. Foxy Paesyeon aims to offer its products at
a competitive price to meet the demand of the middle to higher-income with a
knitwear made from high-quality materials for an affordable price. The main
objectives for Foxy Paesyeon company are to grow the company into a “Well
established” company that provides “Best valued” clothes and services in Asia.

1.2 Foxy Paesyeon’s mission is to make people “Feel Good” and “Look Great”. This
will definitely boost up people’s confidence level and self-esteem with a stylish
knitwear that they can wear. Customers will definitely come for more of our
product now that our products will play a part in boosting up their confidence and
self-esteem. Therefore, our company sells a variety of voguish knitwear made
from comfortable and premium materials that are suitable for Malaysia weather.
Furthermore, the mission of Foxy Paesyeon is to design and deliver “Superior
design” and “Quality” and “Value” to customers. Customer’s satisfaction is our
goal. So, we want to make sure that our customers are going to get an effective
and satisfaction from our product without any doubt.

1.3 The starting capital of Foxy Paesyeon is RM 10,000.00. We aim to pay back the
start-up capital within the first month of opening. The key to success in this Foxy
Peasyeon production is to provide the highest quality of premium knitwear
clothing product with the best personal service to all of the customers. Next, is to
gain attention from the customers since the clothing product business, especially
knitwear is not in demand all the time. Despite this, we still offer the best and
affordable price among other competitors.

1.4 Our target customer is for people aged 15-30 years old and prospect from
different income level. Foxy Paesyeon target market is 86% for women and
another 14% for targeted male customer.
2.0 COMPANY VISION, MISSIONS AND LOGO

2.1 VISION

Foxy Paesyeon‘s vision is:

“To grow the company into a “Well established” company that provides “Best valued” clothes
and services in Asia.”

2.2 MISSION

Two missions have been implemented in order to achieve our vision, which include:

1. To make people “Feel Good” and “Look Great”

2. To design and deliver “Superior design” and “Quality” and “Value” to customers.

2.3 LOGO
2.3.1 MEANING OF LOGO

2.3.1.1 COLOUR

The Black Bolded Line represents that our product is solid, strong and powerful. It means our
company is strong enough to take risks and can also be a rival to other companies. It covers,
hides and implies when there is a barrier to our company.

The Soft Pink that covers the fox implies that our product is stimulating, soft and exciting. It
represents our spirit to run the business which is we are brave to try on our very own and create
something new for our consumers. Soft pink colour represents sweetness, charms and
femininity. This definitely will boost up our customers’ confidence level and self-esteem when
they wear the premium knitwear from Foxy Paesyeon.

The lovely pink flower on the fox’s head symbolizes our feelings whenever we serve our
customers happy and cheerful. This is mainly caused by the fact that we need to maintain the
quality of our product so they’d buy from us again. It is extremely important for our company to
preserve our good image and feedbacks from our customers.

2.3.1.2 SHAPE

The square shape represents our bond as Foxy Paesyeon company members. It shows our
good teamwork and willingness to go through ups and down together as one team. Our
teamwork focuses on growing the company into a well-established company that provides best
valued clothes and services in Asia.

We’ve decided on a fox shaped logo because foxes are widely associated with astuteness and
trickery. On another note, people have always respected this red-tailed animal for its
intelligence. This, in a way, alludes to the intelligence of our team whom carefully picked the
materials and the designs for our product. Not only are we intelligent, we are also strict about
the detailing of the product that we deliver to the customers. The shape of the fox and the font
for the brand strongly suggests the aspects of modernity in our product.

The shape of the flower indicates the symbols of long life, honour, good luck, purity of mind and
heart, and health. This shape has an important meaning in our company. The flower shape
implies that we ought the brand to stay long, to be honoured with our product, and for our
customers to be able to build a strong confidence when they wear the premium knitwear from
our company. The customers’ satisfaction is the key success in our company and we hope for
our product to fill our customer’s satisfaction.

3.0 INTRODUCTION TO PRODUCT

Foxy Paesyeon is a company that sells clothing production. In simpler words, the meaning of
Foxy is attractive and it is typically used of a woman. Meanwhile, Paesyeon is taken from the
Korean word which means fashion. The main reason that we choose to use dual language for
our business name is to have a mixture between western and Asian styles so that our products
can fit with Malaysians’ fashion taste. Our variety of collection will embrace customers’ beauty
and makes customers look more fashionable, chic and unique as they are.

Our business, Foxy Paesyeon brand focuses on knitwear clothing. Knitwear is a piece of
clothing, usually with long sleeves, made of knitted or crocheted material, that covers the upper
part of the body. We use very comfortable materials that are suitable for Malaysia weather. Over
the years, knitwear clothing is designed to match the targeted consumer's wants. Our product
solely focuses on selling trendy and stylish knitwear clothes that are suitable for teenagers and
adults alike these days. There are two suitable fabric that we used in the product which is Rib-
Knit fabric and interlock fabric. This fabric will make the buyer fall in love with it because it is
ironless. Certain cloth will be designed with certain types of fabrics which iron less. The fabric
that will be used has been treated to resist external stress and hold its shape. This means, this
type of knitwear would solve the problem of customers who are busy and don’t have time to iron
their top. All you need to do is Grab it and Wear, making our product really convenient for our
customers. Our priority is for our customers to be happy and contented when they purchase our
product.

Other than that, we want to provide the products that meet our customer’s satisfaction along
their needs and wants. Thus, we will sell our products at a very reasonable price. This is also
because our targeted customers are the youth and all kind of customers with different income
level. Our company provides a reasonable and affordable price with high quality materials which
are suitable for the customers’ needs and wants. We are using a social media platform to sell
our product and we did a digital marketing to attract the customer and made our brand well
known for selling premium knitwear with affordable price. They can contact us via Whatsapp,
Instagram or Facebook for placing orders. We also need our customer’s feedbacks so we can
improve our products if there is anything that dissatisfy our customers. We genuinely want the
best for our dear customers, and we sincerely want to provide the best product for their needs.

4.0 ADMINISTRATION AND MANAGEMENT ASPECT

5.0 BUSINESS OPERATION ASPECT

5.1 MANUFACTURING PROCESS

FOXY PAESYEON is a company that produces fashion clothes with a variety of designs.
One of these products is Knitwear which is made from different types of fabric and materials.
The fundamental material that is used in creating this product is suitable fabric, essential tools
like yarn,sewing machine and suitable fabrics. We focused mainly on 2 fabrics which are
suitable wear in Malaysia due to its humid weather. The 2 suitable fabrics are Rib knit fabric and
Interlock knit fabric.

We also have an office which is located at No 10, Jalan Perindustrian PP 7, Taman

Perindustrian Putra Permai, 43300 Seri Kembangan, Selangor. Our business is an e-commerce
business which focuses on Business to Consumer (B2C). We were operating in house and
selling it online through Facebook and Instagram. Moreover, we purchased our fabrics from
FASHIONIC Sdn. Bhd which is located at 12, Jalan PBS 14/9, Taman Perindustrian Bukit
Serdang, 43300 Seri Kembangan, Selangor. The reason we choose this fabric supplier is
because it is located near to our office and it is convenient for us to purchase them at a
reasonable price. This supplier also offers us with discount prices as we purchase in bulk.

In general knitwear-manufacturing process includes sourcing and selection of raw

materials (such as fiber, yarn and filament), fabric manufacturing (knitting or linking), wet
processing technologies (pretreatments, dyeing and finishing), cutting, sewing and finishing. But
our company mainly specialized and focused in turning the fabrics we purchased from the
supplier into knitwear sweaters which are ready to wear for the customers.
The process of making knitwear is as below:

Process 1 :Selecting

Selecting suitable fabric which is widely used in Malaysia.

Example of Rib Knit fabric Example of interlock knit fabric.

After purchasing selected fabrics from the supplier we will start in designing the fabric into
beautiful knitwears.

Process 2 :Cutting

Cutting down the fabrics into preferred knitwear sizes using scissors and also fabric cutters to
cut fabrics easily.
Process 3 :Sewing and Finishing

Sewing the knitwears using knitwear sewing machines.

Process 4: Final Product of FOXY PAESYEON

5.2 PRODUCTION COST

5.2.1 Foxy Paesyeon’s Super Premium Knitwears

RM 25 EACH
5.2.2 Foxy Paesyeon ‘s SUPER COMFY KNITWEARS

RM 30 EACH RM 35

5.3 EQUIPMENT AND TOOLS USED

Several kinds of equipment and tools are used in producing the knitwears. These
equipment and tools include a sewing machine, scissors,fabric cutter, machine needles, seam
unpicker, hand sewing needles, thimble, measuring tape, pins and pincushion, and threads. All
the items except the sewing machine are available in ‘MR.DIY’. The sewing machine can be
bought from the ‘Singer’.

Sewing machines are required to do the majority of the knit fabric sewing. Scissors are
used for cutting threads and cutting out patterns from the rib-knit fabric and interlock fabric. A
fabric cutter is used to cut large quantities of fabric. Machine needles are required for the
sewing machine because hand sewing needles cannot be used for sewing machines. Seam
unpicker is required to unpick stitches. Hand sewing needles are also used to do intricate
detailing on the fabric. Thimbles are used to protect the thumb when sewing. The measuring
tape is used to take measurements or alterations. Pins and pincushion are used to keep the
fabric in place while cutting or sewing and to hold the pins in place respectively. Last but not
least, threads are used to deliver aesthetics and performance in stitches and seams.
5.4 PRODUCT QUALITY CONTROL

Quality control (QC) is a procedure or collection of procedures designed to ensure that a

product or service created complies with a given set of quality standards or meets the
customer's requirements. Quality control includes inspection of units and deciding if they are
within the final product requirements. Quality control helps identify where a production problem
is occurring and the remedial steps it requires to prevent it in the future.

Foxy Paesyeon is very committed in delivering high quality products to customers. To

ensure this we followed some quality control techniques. These techniques includes:

● Make sure the fabrics supplied (Rib-knit fabric and interlocked fabric) are free of
defects. These include exposed notches, pulled or loose yarn, holes, stains and
difference in shades within the same fabric.

● Make sure the modifications made to the development sample by the design
department is noted for inclusion in the final specification.

● Provide the production department with a specification sheet and Tech Pack It
contains the standard of make, clear instructions and how to follow them, type of
thread and trimmings to be used, how the knitwear is to be presented and how it
is to be delivered.

● Prior to delivery, the knitwears are checked by a designated member of the team,
before it is approved and signed off and proceed with delivery. To check the
knitwear tests such as fabric tests and physical tests are carried out.

● Make sure the knitwears are priced accordingly.

● Lastly, make sure the knitwears are packed nicely, safely and labelled correctly
before setting out for delivery.
 In conclusion,quality is ultimately a question of customer satisfaction. The perceived
quality of the knitwear is the result of a number of aspects, which together help achieve the
desired level of satisfaction for the customer. Therefore quality control in terms of knitwear
production, pre-sales service, posts -sales service, delivery, pricing, etc are essential. Giving
excellent quality, quantity and new styles and varieties of knitwear with no time by using this
development will definitely improve the business.

5.5 INVENTORY CONTROL

Inventory control is a crucial part of every industry. Inventory control is called stock
management which saves cost, time and increases the work efficiency of the warehouse.
Inventory control can be defined as a list of in housed, unsold, and unshipped goods in an
organized way at the same time; balance quantity, booking quantity, shipping quantityThese
includes the real status of stock,selling,shipping, and moving goods.To a large extent, the
success and failure of a business depends upon its inventory management performance. The
basic objective of inventory management is to optimize the size of inventory in a firm so that
smooth performance of production and sales function may be possible at minimum cost.
Our company Foxy Paesyeon adheres to the principle of inventory management.

● Goods in the store are placed separately. Raw materials, work in process and
finished goods are kept separately. These goods are kept in different labelled
shelves to avoid mixing of goods.

● A proper database and recording system is maintained so that it can be used to

monitor the inventory status continuously. Excel database is used to record and
monitor the inventories.

The following items are included in the inventory report:

1. Buyer name
2. PO and style name
3. Production name
4. Product description
 5. Proforma invoice (PI) number of received goods
6. Challan No
7. Booking quantity
8. Received quantity
9. Balance quantity
10. Delivery quantity
11. Quality inspection status
12. Due product
13. Product moving log
14. Shipment date
15. Rejected quantity
16. Store rack number

6.0 MARKETING ASPECT

6.2 MARKETING ANALYSIS

6.2.1 COMPANY

For our production, all come from manpower and less machines are used. So, we need
to face the fact that our workers cannot work all the time making hand-knits. Some of
them easily fall sick and take a few days to break for another commitment, because half
of our product manufacturing activity requires full manpower. So, we are detected that
our company cannot maintain our production smoothly and produce in large quantities
due to lack of labour and money because we recently started this company.

Based on our company situation analysis, our company can make productions greatly
from time to time. We will make it by working hard for all members of this company. This
is because our company members are effective and efficient in completing and serving
the orders to the customers on time. Our company members do have adequate skills in
hand-knitting. With the amount of profit that we gain from our online selling the products,
we can buy more capital which is a machine and rent better places to increase our
production. By doing that, we can stand strong and grow well in this industry.

6.2.2 COMPETITOR

There are many competitors in our business in digital marketing. We need to accept the
fact that we are having many competitors because our product marketing about knitwear
and shawl there are various other companies that have been established for a long time
compared to our company that uses the same platform like Instagram and Facebook.
For the design, actually are almost the same with us but in different styles and forms.
The contrast between our business and their business is in a different design. Our
company tries to create some new designs, make unique designs and we start with a
simple one. Then we try to improve and make more style design for the future product.
So, customers can see every design that our company creates more attractive, beautiful
and unique.

We believe there is a great advantage for our product as we sell it at an affordable price
for all teenagers in Malaysia.

6.2.3 CUSTOMER

Other than that, we found out that they love to have great knitwear and shawls. Thus,
customers will only purchase when they love our design and colour, deliver the
customers purchase early and love when we always show appreciation to the feedback
by the customers. All the analysis we make, we take it seriously when producing our
product. We will make sure that the raw material we use is fresh nowadays and the style
and production of hand make beautiful enough quality pieces.

6.2.4 TECHNOLOGY

Basically, we use manually 50% to packaging design and making our product. That is
why we need more manpower to produce in large quantities as it can take a long time to
 prepare and pack. Time by time, we believe we can afford to buy technology machines
when we get a lot of profit.

6.3 SWOT ANALYSIS

SWOT analysis is a strategic planning method used to evaluate the strengths, weaknesses,
opportunities, and threats involved in a project or in a business venture. It involves specifying
the objective of the business venture or project and identifying the internal and external factors
that were favourable and unfavourable to achieve that objective.

Based on product making, we are used to designing by hand-knitting. For making, it was
explained that we work manually to make our product which is knitwear. when the demand of
many, will give us a challenge, take a longer time to prepare and lack the capital to produce in
large quantities.

STRENGTHS WEAKNESSES

1. Quality raw materials (fabric). 1. Take a longer time to prepare.

2. Skill fully workers (designers). 2. Lack of reputation since the business
3. Cooperative among members. hasn’t been established.
4. Able to generate ideas to run business 3. Lack of capital to produce in large
successfully. quantities.
5. Good communication skills within
company members and outsiders.
6. Have several promotion strategies to
promote sales.
7. Efficiency in completing tasks in the
given time.

OPPORTUNITIES THREATS

1. High social acceptance. 1. Price for the raw materials might

2. Could expand to a higher level. change from time to time.
 3. Customers nowadays like things to be
easily accessible.
4. A lot of potential customers.
5. Fewer competitors in digital
marketing.
2. The price of the knitwear and shawl
sold by the competitors might be lower
than ours.
3. Variety of products sold by the
competitors may be more attractive
than our company.
4. The competitor can use technology to
produce a large number of products
by lower input costs in a short period.

This is the summary of the SWOT analysis that was conducted for Foxy Paesyeon:

6.3.1 STRENGTH
The good and stable company must have strength in order to carry out their business. Its
strength could be evaluated from four aspects which are marketing, finance,
manufacturing and organization. We have introduced our product which is knitwear and
shawl with premium quality to vary customers’ choices and we also use several
strategies to promote selling in order to increase our profits. Because our company's
product is clothing, it’s a strength for us in having a clothing designer who specializes in
the design and also produces products well in hand- making.

Besides that, our workers have good skills in making their work. It can help our
production process to become smoother and our products are good in quality. As a
result, it could help our company to build up our reputation. In addition, our company has
good organization and each of us holds different positions in our company. It helps our
business to be carried out efficiently. Our workers are cooperative and have good
communication skills with outsiders. This results in our company carrying out our
business effectively and can complete the task in the given time.

In addition, good communication skills are needed when communicating with customers
in order to provide information and persuade them to buy our products.
 6.3.2 WEAKNESSES
There is a weakness that appears in our company although we have strengths. Our
company is lacking its reputation. This is because our company business is new, and no
one recognizes our company. It is hard to sell our products to customers as they do not
know our company. Therefore, our company must use different types of strategies to
promote our company products and services. Therefore, we must use this digital
marketing effectively. In addition, we lack the capital to produce products in large
quantities for a short time.

6.3.3 OPPORTUNITIES
The opportunity for our products is when we expand the broad market such as digital
marketing because our customers nowadays like the thing to be easily accessible.
Besides that, many customers will potentially know our product more closely. In fact, the
opportunity to compete will also give a little benefit when our company continues to
strive to be the best all the time and could expand to a higher level for our future product.

6.3.4 THREATS
There are also threats that may influence our company. That would cause trouble for the
business, especially in our digital marketing. The competitors could set their products
price lower than our company because they could produce the products in large
quantities all the time and a variety of products sold by the competitors may be more
attractive than our company.
This can make customers have more choices. In addition, competitors can use
technology to produce products in large quantities. This can fit the request of demand
when customers want to buy large quantities of clothing. Because they use technology
to produce clothing, they can reduce their cost and get high profit. Then they can use
their profit to expand their business. Thus, it causes a threat to our business as we are
unable to compete with them.

6.4 MARKETING PLAN

6.4.1 PRODUCTS AND SELLING PRICES
 In Foxy Paesyeon, our products are a variety of knitwears such as Super Premium
Knitwears, Plain Super Comfy Knitwears and Patterned Super Comfy Knitwear. Each type of
knitwear will be charged the prices based on the material and design used. The price per unit of
Super Premium Knitwear is RM 25, Plain Super Comfy Knitwear is RM 30 and Patterned Super
Comfy Knitwear is RM 35. Moreover, we provide fast delivery services for all our products to the
customers. We make sure the orders can process and ship out as quickly as possible. The
shipping fee for west Malaysia is RM 7. For east Malaysia, the shipping fee is RM 10. The
shipping fees are charged if the parcels’ weights below 1 kg.

6.4.2 PLACE

Foxy Paesyeon is always looking forward to a great social networking platform to

promote our business, which is through Facebook and Instagram. These insights will help us
launch a successful social media marketing campaign through the right channel. Our target
markets are youth among the ages 15- 30, women, those men who want to buy for their loved
one and people from different income levels. In fact, internet users in these target markets use
Facebook and Instagram. Both platforms are ideal for reaching a younger audience and
effective for reaching internet users across all age groups. We produce our products in a house
near our office and suppliers. Therefore it is more convenient for us to prepare due to nearby
resources. We also use WhatsApp Business to approach our customers because it is free to
download and has been created with the small business owner in mind. The app makes it easy
to directly interact with our customers, highlight our goods and services, and answer customer’s
questions during their shopping experience. Build a catalogue to display our goods and services
and use special tools to automate, sort and respond to messages quickly.

6.4.3 PROMOTION

We engage with social media such as WhatsApp, Facebook and Instagram as the
platform for the promotion and advertising our products. Our marketing team will advertise
posters and teasers regarding products. We find out that hashtags are a way to put together
thoughts, principles or conversations. They make it easy for customers to find products who
post on they're interested in. By using relevant hashtags in our tweets, we can easily meet new
customers who are interested in our products. The trick is to use hashtags that not only define
your images and company, but are also regularly searched and used on Instagram.
6.5 DIGITAL MARKETING

Digital marketing includes all marketing campaigns using an electronic device or the
Internet. Businesses exploit digital platforms such as search engines, social media, email, and
other websites to connect to current and prospective customers. We prefer social media
marketing on Instagram, Facebook and WhatsApp. During an Instagram marketing campaign,
we encourage followers and customers to share posts featuring our products in user-generated
content (UGC) campaigns, using a specific hashtag to tie the campaign together. For example,
#fashionpaesyeon, #knitwearmurah and #knitwearmalaysia. A UGC campaign not only
promotes our brand awareness through the hashtag, but also provides us with content that can
be used on our own channels. A major incentive for users to participate is the hope that brands
will repost their photos.

Our Facebook page, Foxy Paesyeon, we fill out descriptions about our business, contact
information, location, hours and categories. We add content to our page by posting a post such
as a status update, a link, a photo, a video, an event, or a milestone. New, fresh content on our
page will make it look all the more attractive once new viewers come over to check it out. Photo
posts are a great way to show off our products, especially if they have a high visual appeal or
something customers need to see in order to fully appreciate. We make sure the product has
strong visual appeal, a short video post can be compelling. Even a clip that's only a few
seconds long can be a great way to catch someone's eye, since videos start playing
automatically in the News Feed. As it turns out, teaser videos may be great for engagement, but
not necessarily for driving traffic back to our site. From a marketing point of view, it is clear that
Facebook is a no-brainer when it comes to sharing video on social media. After all, the platform
continues to adjust its algorithm to favour video in the News Feed, making it an obvious choice
for our business to invest in video. For instance, we create a teaser post to give hints to
introduce our variety of knitwear products.

For the Facebook and Instagram components, we highlighted the hard sell and soft sell
technique for copywriting. For hard sell, we follow the steps using AIDCA technique for
copywriting. For example,

[Don’t Read This]

This is because you will definitely fall in love with this premium collection from Foxy Paesyeon.
This knitwear will definitely solve all your problems! All of our collections are using ironless
material to make your life easier! All these knitwear you can get below RM50!

So all you gotta do is Grab It and Wear It! It is the best choice of clothing for everyone!

Grab it now before it's too late.

Whatsapp us to purchase +601223344556

Hard selling can be characterised by a variety of techniques that provoke consumers,

flatter them, play off their fears or fears of missing out and try to convince them that buying our
knitwear will be a smart decision that will improve their lives in fashion.

For soft sell, we follow the flows which are title, introduction of the story, storytelling and
call for actions (CTA). For example,

[Rare Collection Knitwear]

Anny works as a book store keeper and meets customers everyday. As a customer
friendly, Anny has to engage all the time for the customer's needs.
Customer once asked her regarding her rare collection of knitwear and she received the
compliment with a smile.
Anny fell for the different design of knitwear that were sold.
But do you guys believe owning a rare collection of knitwear with reasonable price😲😳
Let me show you some pictures of that rare collection knitwear. But before that I'm
warning you the knitwear stock is limited guys.
✨⚠️Follow #fashionpaesyeon for more💥

[The Story of an Ordinary Girl]

In the past, I was not interested in fashion, I did not like to try new clothes. One day, on
my birthday, my friend gave me a collection from Foxy Paesyeon. When I touch the material, it
is very nice. I am very eager to enrich it in the workplace. Many co-workers reprimanded saying
"Beautiful knitwear", "You look stunning". Many words of praise I received that day. It's fun too. I
told my friend I want to buy this Foxy Paesyeon collection again because it is ironless.

Another outcome of having to concentrate on the quality of content is that we will build
more confidence. Basically, we are offering something of quality to our customers without
asking for something in return. This shows them that more than just sales are what we care
about. As a result, they'll be more likely to further explore Foxy Paesyeon. Not to mention that
building trust is essential for long-lasting relationships to be established.

7.0 FINANCIAL ASPECT

7.1 LIST OF EXPENDITURE

The expenses that incurred during the first month of production is as follow :

Expenses Qty RM Cash Non-Cash

Equipment & supplies

Sewing machine 2 800 /

Machine’s needles 4 45 /

Scissors 3 40 /

Fabric cutter 3 70 /
 Seam unpicker 2 20 /

Hand sewing needles 3 10 /

Thimble 3 10 /

Measuring tape 5 10 /

Pins & pins cushion 5 20 /

Tape 5 10 /

Rib knit fabric - 500 /

Interlock knit fabric - 500 /

Marketing Expenses

Advertising - 400 /

Delivery Expenses

Fuel - 200 /

Operational Expenses

Wages 2 3, 000 /
workers

Rent (Studio) 1442 Square-Feet - 2, 000 /

Total Expense 7, 635

 A total of RM10, 000 of capital contributed by ten partners is used to cover all the
business expenses which is RM7, 635. The expenses include equipment and supplies,
marketing, delivery and operation which also include the wages of workers and rent for the
studio that has been used for the purpose of business. Meanwhile, the purchasing of all the
equipment is needed for the early operation of business. For example, the machine that needs
to buy to produce knitwears and all the materials needed. Besides, the advertising and
transportation expenses also included the need to promote and deliver the product to
customers.

7.2 LIST OF SALES REVENUE

Foxy Paesyeon produces three types of knitwear which are Super Premium Knitwear,
Plain Super Comfy Knitwear and Patterned Super Comfy Knitwear. All these knitwears are
selling at different prices, for Super Premium Knitwear we are selling at RM25 per piece,
Patterned Super Comfy Knitwear we are selling at RM35 per piece and Plain Super Comfy
Knitwear we are selling it at RM30 per piece. On week 3 we are going to make a promotion for
Super Premium Knitwear to attract more customers and week 4 we are going to make
promotion for both Super Comfy Knitwear. We estimated to get RM5035.00 for the total sale
revenue of all products. For Super Premium Knitwear we estimated to get 75 pieces sold which
mean RM1750.00 sales revenue, Patterned Super Comfy Knitwear we estimated to get 48
pieces sold, RM1575.00 sales revenue and Plain Super Comfy Knitwear we estimated to get 61
pieces sold and get RM1710.00 sales revenue. All these estimates are made for 4 weeks of
business.

TABLE 7.2: SALES REVENUE

WEEK 1 WEEK 2 WEEK 3 WEEK 4 TOTAL

19/10 – 26/10 – 2/11 – 8/11 9/11 – 15/11

25/10 1/11

SUPER PREMIUM
KNITWEARS

Quantity sold (unit) 15 15 25 20 75

(20% off)

Selling price (RM) 25.00 25.00 20.00 25.00 20.00-25.00

Sales Revenue 375.00 375.00 500.00 500.00 1750.00

(RM)

SUPER COMFY
KNITWEAR
(PATTERNED)

Quantity sold (unit) 10 10 13 15 48

20% off

Selling price (RM) 35.00 35.00 35.00 28.00 35.00-28.00

Sales Revenue
(RM)
350.00 350.00 455.00 420.00 1575.00

SUPER COMFY
KNITWEAR
(PLAIN)

Quantity sold (unit) 13 13 15 20 61

(20% off) 24.00 –

30.00
Selling price (RM) 30.00 30.00 30.00 24.00

Sales Revenue 390.00 390.00 450.00 480.00 1710.00

(RM)

Total Sales 1115.00 1115.00 1405.00 1400.00 5035.00

Revenue (RM)

7.3 COST OF GOODS MANUFACTURED

Cost of goods manufactured referred to raw material cost plus direct labor cost.The
Foxy Paesyeon spent a total of 4000RM or the 4 weeks of business. This cost is
calculated based on the production cost as a whole as below.

Table 7.3: Cost of Goods Manufactured

Cost of Goods Manufactured

Raw Material Cost

Rib knit fabric *(a) RM500

Interlock knit fabric *(a) RM500

Direct Labour Cost

Wages(2 workers) *(b) RM3000

Total Cost of Goods Manufactured RM4000

Notes:

*(a) Raw Material Cost refer to Table 7.1

*(b) Direct Labor Cost refer to Table 7.1

7.4 CASH FLOW STATEMENT

Cash flow statement is a statement that show cash in hand at the end of the

business. Upon end of the business, Foxy Paesyeon obtained a total of 7400RM

cash on hand as below.

Foxy Paesyeon

CASH FLOW STATEMENT

OF A PERIOD 4 WEEKS END ON 15TH NOV 2020

 RM

Capital 10000

Inflow Cash

Total of Sales*(a) 5035

Net Inflow Cash 15035

Outflow Cash

Cash Expenses *(b) 7635

Cash Surplus / (Deficit) 7400

Notes:

*(a) Total of Sales refer to Table 7.2

*(b) Cash Expenses refer to Table 7.1

7.5 INCOME STATEMENT

Income statement shows the gross profit and the net profit of the business. It is
estimated that by week 4 of FOXY PAESYEON we will able to has gross profit of RM and
the net profit is estimated RM828.00. Refer to the income statement of FOXY PAESYEON
as shown above for clearer view.

FOXY PAESYEON

INCOME STATEMENT

OF A PERIOD 4 WEEKS END ON 15TH NOV 2020

 Assets RM RM

Sales *(a) 5035.00

Deduce total cost of goods manufactured*(b) (4000.00)

Gross profit 1035.00

Deduce operating expenses: *(c)

Cost of Equipment & supplies (2035.00)

Delivery Expenses (200.00)

Marketing Expenses (400.00)

Operational Expenses (5000.00)

Net profit 828.00

TABLE 7.5 INCOME STATEMENT

Notes

*(a) Total of Sale refer to Table 7.2

*(b) Total Cost of Goods Manufactured refer to Table 7.3

*(c) Operating Expenses refer to Table 7.1

7.6 BALANCE SHEETS

Every shareholder in this company take out RM1,000.00 as the investment to the company. As
shown in the balance sheet, at the beginning of the business, FOXY PAESYEON has a total of
RM10,000 (RM1,000.00 per person *10 shareholders) of capital as the company asset. There is
no loan, thus the liability is zero.

As shown in the second balance sheet at the end of the business on 15th Nov 2020, FOXY
PAESYEON has the total of RM as the company asset with zero liability.

The total asset and total liabilities and shareholder equity are balance as shown above. Refer
below for more details.

FOXY PAESYEON

BALANCE SHEET

ON 15TH NOV 2020

Assets RM Liability RM

Cash on hand 10,000.00 Loan 0.00

Shareholder equity
 Share capital 10,000.00

Total assets 10,000.00 Total liability and shareholder equity 10,000.00

Assets RM Liability RM

Cash on 7400.00 Loan 0.00

hand*(a)

Sewing machine 800.00

Inventories 2628.00

Shareholder equity

Share capital 10,000.00

Net profit*(b) 828.00

Total assets 10,828.00 Total liability and shareholder equity 10,828.00

Notes

*(a) Cash On Hand refer to Table 7.4

*(b) Net Profit refer to Table 7.5

8.0 APPENDIXES
9.0 REFERENCES