Operating Forecast (Grey box = decision entered online)

Model 1 Model 2
Workforce [Wk] 1000 1100
Automation investment and allocation % %
Units of Automation [A] 0 0
Effective workforce [We = Wk + (10 * A)] 1000 1100
Productivity cars/worker/year [Pr] 44 42
Potential Production (no O/T) [Pp = We * Pr] 44000 46200
Target Production [N = Pp????] 37400 39270

Weekly wage [W] 530

Total Labour Cost [Lt = Wk * W * 50] 26,500,000.00 29,150,000.00
Labour cost per car [Lc = Lt / N] 708.56 742.30

Raw material cost per car £ [Mr] 9832.44 13581.79

Design cost per car [Md] 1087.36 2347.07

Offered options cost per car [O] 820.66 1226.87

Option take-up factor [Ot] (See note below) 0.33 0.33

Average option cost per car [Mo= O * Ot] 270.82 404.87
Average material cost per car [Mc = Mr + Md + Mo] 11190.62 16333.73
Total Material Cost [Mt = Mc * N] 418,529,105.72 641,425,463.22

Average direct cost per car £ [C = Lc + Mc] 11,899.17 17,076.02

Average Selling Price [P] 15,000 22,000
Average Gross Margin [GM = 100 * (P – C) / P] 20.67 22.38

Unsold stock from previous round [U] 0 0

Forecast Sales [S = U + N] 37400 39270
Sales Income [I = S * P] 561,000,000.00 863,940,000.00

Note: OT is your estimate of the proportion of options that will a

OT = 0.0 means no options actually selected; OT = 1.0 mea
 Total
2100 small 44
£m medium 42
large 41
luxury 35

76670 0.85 Ensure there is a "buffer" between potential and target production, you can work at 85% capaci

55,650,000.00

small - 5, medium -
25, 27 1, 25, 27

1,059,954,568.94

1,424,940,000.00

oportion of options that will actually be selected by the average customer.

ctually selected; OT = 1.0 means all options actually selected.
tion, you can work at 85% capacity for example, but not 100%!
Profit Forecast (all figures to the nearest £1 million)

Income
Sales Income £m
Cost of Sales (see below)

Gross Profit £m

Overheads
Fixed Overheads (See manual)
Promotion
Research & Development
Training Costs
Total Overheads

Depreciation (See manual)

Operating Profit £m

Net Interest Payment

Pre-tax profit £m

Tax Payment (22% of pre-tax profit)

Post-tax profit £m

Cost of Sales calculation:

Unsold stock from previous round
plus Total Material Cost
plus Total Labour Cost
less Closing Stock (hopefully £0!)
Cost of Sales

Note: there may be other costs that are not listed here, think about stock upkeep (if applicable) and warranty costs for example.
 Costs

£m

£m
£m
£m
£m
£m
1100
£m

£m

£m

£m
£m
£m
£m
£m

costs for example.

Cash Flow Forecast (to nearest £1 million) (Grey box = decision entered online)

Opening Bank Balance

Sales Income

Total Material Cost

Total Labour Cost

Total Overheads
Factory Cost
Automation Expenditure
Tax Payment
Net Interest Payment

Bank Balance before Loan

Loan requested
Closing Bank Balance

Net Debt
Overdraft + outstanding loan at the start of this round + loan requested in this round

Note: there may be other costs that are not listed here.
 Cash In Cash Out
£m This will be £500m in year 1, the initial bank balance.

£m In the cash flow, sales income and costs (see the two immediately be

£m
£m

£m
£m This will be £670m for the factory in year 1.
£m
£m
£m

£m
£m
£m

£m
ee the two immediately below) will be 11/12 of sales revenue and cost of sales, given the 30 credit and debit days, i.e. 1 month in arrears.
t days, i.e. 1 month in arrears.