Section 2

Team 6
Fall 2022

Business Plan
Business Name: Wheel n’ Go
Business Idea: Wheel n’ Go is a manufacturing company that produces outdoor chairs. The
goal is to ease the transportation process of the standard chair to make our consumers'
lives a bit easier. Our standard features include an olive-green canvas, patented multi-
terrain wheels, a handle, cup holder, and buckle to secure the chair during transport.
We strongly believe as a business we should not sacrifice a strong economy for a healthy
environment, which is why our company takes pride in environmental conservation and
being American-made. We fulfill these values by only using sustainable materials in our
chair and full assembly takes place in the United States of America. Wheel n’ Go is perfect
for any outdoor activity, so for your next adventure, just roll with us!

Team Members:
Email address
Jaclyn Douglas __________________________ douglajx@dukes.jmu.edu
Levi Godshall __________________________ godshale@dukes.jmu.edu
Sean Kelsey ___________________________ kelseysm@dukes.jmu.edu
Olivia Marsteller ___________________________ marsteoj@dukes.jmu.edu
Tyler Negron ____________________________ negrontg@dukes.jmu.edu
Michael Roenick ____________________________ roenicms@dukes.jmu.edu
Robyn Troutman ____________________________ troutmrb@dukes.jmu.edu
 Executive Summary
Wheel N’ Go
Levi Godshall
2830 US HWY 421 N, Wilmington, NC 28401
Phone: [(540) 578-7117]
E-mail: [levigodshall@gmail.com]

Management: Business Description: Wheel n’ Go LLC is a

Titles: General Manager, Market/Sales
Manager, Operations Manager
Industry: Sporting Goods and Outdoor
Products
Number of Employees: 26
Amount of Financing Sought: Each owner
in the group contributes $100K of their
capital totaling $700K- individually holding
14.3% ownership. We are also taking out a
$200K loan with 8% interest and $300K in
convertible notes at 5%.
Investment Sources:
Owners, banks, and the general public
Use of Funds: Product development,
marketing/sales
Product/service selling price: $125
chair manufacturer located in Wilmington,
North Carolina. Our chair is sold business to
business, exclusively to Dick’s Sporting Goods
retailers throughout the East Coast of the
United States.
Products/Services:
The Wheel n’ Go is an outdoor folding chair
with wheels on the back legs attached to an
inward folding hinge. Our product will be sold
for $125 and costs $46 to produce. Wheel n'
Go is projected to sell an average of 32,314
units during the next five years.
Competitive Advantage: Unlike other
camping chairs on the market, our product is
equipped with multi-terrain wheels, so you
only have to buy one chair for all your
outdoor needs. The production of Wheel n’ Go
takes place in the United States and utilizes
materials that are environmentally friendly
and fully recyclable.
Markets: Our primary data suggests our
target market ranges from ages 35-60, with
an average annual income of $60K-$150K.
We target individuals willing to pay more for
convenience, sustainability, and an American-
made product. Our target market is
estimated to be 14,800K people. This market
includes campers and those who attend
outdoor events. Such outdoor events include
parents going to youth sporting events and
those going to concerts or outdoor
gatherings. Using the build-up approach, we
calculated our estimated revenue for year one
to be $2,080K. Our industry is estimated to
grow in year two and stabilize the following
year.

Distribution Channels: We will use a direct sales force to get our product to target markets. We will be
selling our products at Dick’s Sporting Goods stores on the East Coast. In order to transport our chairs to
stores, we will use Dick’s Sporting Goods’ freight system.

Competition: Competitors in the camping chair market are GCI Outdoor, Yeti, Kings River, Cabela’s, and
Coleman. GCI Outdoor is the biggest supplier of conventional camping chairs in our industry. Our industry
has increased in past years, but the future outlook predicts it will begin to level off.

Financial Projections ($ in thousands) (Unaudited):

2021 2022 2023 2024 2025
Revenue: $2,600 $4,084 $ 4,517 $4,661 $4,335
EBIT: $(722) $183 $418 $467 $215

1
Elevator Pitch

Are you ready to get back outside as COVID resides? With online demand for camping chairs

up 128% in 2020, it seems like a lot of Americans are eager for fresh air. Wheel n’ Go is

revolutionizing the standard camping chair by adding multi-terrain wheels. Our company

prioritizes a portable experience by combining the design of a dolly with a camping chair.

With the environment and our country at the forefront of all our minds, we designed our

chairs by utilizing eco-friendly materials and conducting all manufacturing in the USA.

Product/Service Description

Our product comes equipped with a standard-size cup holder, multi-terrain wheels, and

buckle to secure the chair during transportation. The wheels fold inward to ensure

sturdiness while in use. We use steel and soft yet durable hemp fabric as the foundation.

Our chair is 35 inches tall with a 17-inch seat. Our product addresses the hassle of carrying

the chair by adding wheels on the back two legs to increase transportability.

Competitive Advantage

The camping chair market has no competitors that are both made in the United States and

composed of eco-friendly materials. In addition, our chair wheels are patented, protecting

our differentiation factor. The production of the multi-terrain wheels in-house allows us to

monitor quality and create consistent output. Other competitors whose products have

wheels only target one specific terrain.

Value Proposition

With global warming increasingly affecting the earth, consumers are changing their buying

behaviors to focus more on sustainability rather than low costs. Investing in our chair allows

customers to feel they are supporting something bigger than themselves since our product

is 100% recyclable and made from eco-friendly materials. In our initial stages of business,

we will only be selling our chair through Dick’s Sporting Goods stores on the East Coast. Our

limit on where we are selling the chair could be a potential risk; however, this choice allows

us to focus on our target market and ensure high-quality chairs for customers.

2
Business Strategy

We strategically positioned our chair to be made with eco-friendly materials, while

completely manufacturing in the United States. Our strategy falls under a focused

differentiation approach in Porter's strategy model due to our higher cost and smaller

market. We are wholesaling to Dick’s Sporting Goods, which allows us to utilize their online

platform.

Business Location

Our business is located in Wilmington, North Carolina, where we will have a single

warehouse and headquarters. We chose North Carolina because it contains the fourth most

sporting and outdoor retail stores on the East Coast. This is an important factor because we

plan to wholesale our product to these types of stores. Additionally, North Carolina has the

third highest revenue growth rate in our industry on the East Coast.

Outsourcing

We outsource all of our raw materials and manufacture the product in-house. Outsourcing is

a cheaper alternative than producing the raw materials in-house. We will acquire our

thermoplastic pellets for the buckle, wheel hinges, and wheels from Trident Plastics Inc. The

fabric of our chair is Recycled Organic Cotton and Recycled Poly Heavy Weight Plain Fabric

purchased from Hemp Fortex. Our chair legs will be made of hot rolled steel purchased from

Huaping Steel Group.

Financial Performance

In year one, we are projected to have a net loss of $753,925 because our operating

expenses are almost equal to our sales revenue due to our demand being the lowest

projected. However, in the following three years, our net income is positive and increased

with each year, reaching $435,057 in year four. In our fifth year, our demand levels out

which is occurring throughout the outdoor manufacturing industry which leads to our net

income falling to $190,642.

3
 Wheel n’ Go Organizational Chart (Year 2)

Changes to staffing
• At the end of years 1 and 2, we will add an Assembly Associate to operate
the sewing machines purchased to help keep up with forecasted demand.

4
Pay and Benefits Table

Knowledge, Skills, and Abilities

Key Service or Product manufacturing Knowledge, Skills, How are you going to secure these KSAs and
positions and/or Abilities Needed verify employee qualifications?

Operations Manager Ability to anticipate and solve The warehouse supervisor will be required to
problems, attention to detail, present a diploma and or transcript.
organization skills, supply chain
management, and data entry skills.

Assembly Workers Ability to operate various machines Training for machinery they are going to be
efficiently and safely. assigned to work.

Motivating Employees

● Twenty days of paid vacation will be offered per year and three days of sick leave per year
● Debt forgiveness programs for employees obtaining masters degrees
● Offer payment for gym memberships or workout equipment for employees that wish to stay
active
● Offering “sustainability bonus” every day for those that bike to and from work in an attempt to
reduce emissions
● In-house promotion opportunities through running professional development programs
● An EAP (Employee Assistance Program) would be offered for employees. This provides an outlet
for employees to get professional help with personal, work related, health, and mental problems

5
 Target Market

Geographic
Demographic

• Ages: 35-60 • East Coast and

• Families and Southern United
outdoorsmen States
• Income: $60,000 - • Suburban and rural
$150,000
areas

Psychographic Behavioristic

• Typically earn a higher • Enjoys the outdoors

annual income than • Family oriented
average • Attends games and
• Values convenience in sporting events
everyday life

➢ According to SGB Media, “online demand for camping chairs is up 128 percent
compared to the same period in 2020 and up 123 percent compared to 2019” (SGB
Media).

➢ We found our target market income based on our product’s classification as a

shopper item. Customers will take the time to look at our unique product
characteristics compared to our competitors and will be willing to make a special
purchase effort.

➢ We decided to focus on the Northeast and Suburban United States because of the
proximity to the Appalachian Trails, as well as many other national and state parks in
this region. The Southern United States typically has a warmer climate year-round,
allowing for individuals to spend more time participating in outdoor activities.

➢ We conducted a survey through Facebook and surveyed people between the ages of
19 and 84, with 52-year-olds having the highest frequency.
○ This is important because our target market is ages 35-60, and the majority of our
respondents were in that range.
○ Our survey showed 60.4% of participants had an income greater than $100,000.
○ This result is important because it also helps us narrow our target market based on
income, which can then help us with pricing.

6
 Total Market Potential

Annual Total Market Total

Year Geographic Average Potential (# Market Market Unit Price Projected Projected
Area Purchase of customers) Growth Share Units Sold Revenue
Projection

Year 1 Northeast & 0.37 14.8M - .0038 $150 20.8K $ 2.6M

Southern US

Year 2 Northeast & 0.37 23.2M 1.57% .0038 $150 32.6K $ 4.08M
Southern US

Year 3 Northeast & 0.37 25.7M .106% .0038 $150 36.1K $ 4.5M
Southern US

Year 4 Northeast & 0.37 26.5M .032% .0038 $150 37.2K $ 4.6M
Southern US

Year 5 Northeast & 0.37 24.6M -.07% .0038 $150 34.6K $ 4.3M
Southern US

● We found our total projected revenue for the first year by multiplying the total
market potential of the number of customers x annual average purchase x profit per
unit ($125 selling price - $46 cost to produce) x market share x percent of camping
furniture sold in sporting goods stores.
○ Number of customers found by multiplying the number of US households
(130M) x percent of households in our target income range (35.9%) x percent
of people in our age range 1
○ Our Unit price of $125 gives us a $79 profit margin.
○ Small businesses in our industry have a 0.38% market share. 2

● Our total market growth projection was found from IBISWorld. 3

● Projected units sold were found by multiplying the number of customers x the annual
average purchase cycle x the market share.

7
1. GCI Outdoor Freestyle Rocker Chair ($75.00) 2. Yeti Trailhead Camp Chair ($300.00) 3. Kings River Outdoors
Adult Swing Lounger ($69.99) 4. Cabela’s Big Outdoorsman Lounger Chair ($129.99) 5. Coleman Living Collection
Sling Chair ($149.99)

After analyzing the camping chair industry, we noticed a need for an American-made, eco-friendly
outdoor chair. Although there are various competitors in the outdoor furniture market, no other
company has revolutionized the outdoor chair with a folding hinge that attaches all-terrain wheels.
Our biggest competitor, Cabela’s, offers an American-made lounge chair that emphasizes comfort.
However, it is inconvenient to transport and utilize materials that are harmful to the environment.
Unlike some competitors, Wheel n’ Go is proud to say our chair is made in the U.S. and employs
Americans. Our company goal is to provide consumers with an easier alternative than carrying the
standard lawn chair. With the environment at the forefront of our minds, the conservation of the earth
is a key value to our company. Manufacturing in the USA allows us to stay true to our values since the
U.S. has more stringent environmental regulations than other countries. We partner with suppliers
that share our values using entirely eco-friendly materials making our chair 100% recyclable.

SWOT Analysis
Strengths Weaknesses
• Manufactured in house in • Lack of brand loyalty
U.S. • Restricted to consumers
• Eco-friendly and in U.S.
recyclable • Strictly business to
• Provides maximum
business transactions.
convenience for
consumers

Opportunity Threats
• Few competitors with • Big name competitors
similar features control market
• Projected increase in • Increase in material
outdoor activities in U.S. prices during a recession
• Potential for growth • Significant distance
through product between warehouse and
accessories main supplier

8
 Marketing Mix

Price
Product
• $125 per chair
• Durable
• Value-added pricing
• Hinge for wheels
strategy
• Eco-friendly materials
• Competition-based
• American made
pricing strategy

Place Promotion

• Available to purchase on • Outdoor lifestyle

the East Coast and magazines
southern Dick’s retail • Online advertising
locations • Social media platforms
• Available for purchase
in physical stores

• Product - The materials Wheel n’ Go outsources are not only eco-friendly but also
have durability comparable to their non-eco-friendly material counterparts. The chair
provides the basic functions of a conventional chair combined with the portability of a
suitcase.
• Price - We are using the value-added pricing strategy, setting our price at $125. We
added a hinge with wheels, an American-made customer guarantee, and completely
eco-friendly materials to ensure great value for consumers. We are also using
competition-based pricing because our competitors charge higher prices, up to $300,
for their products. In turn, we have aligned our price in the same range.
• Place - Our chair is a shopping product that will not be bought frequently by the
same consumer. We are selling B2B to retailer Dick’s Sporting Goods. In our initial
stages of business, we will only be selling our product on their website, through their
brochure, and at their East Coast stores. The B2B business model simplifies our
selling channels and operations, allowing us to focus more on our product and other
internal business operations.
• Promotion - Customers will learn about our product from outdoor-themed
magazines, online advertisements, and social media platforms such as Facebook and
Instagram.
o We are using social media platforms to advertise because the United States
leads the world in social media advertising.
o In 2021, a survey of B2B marketers who used social media platforms for paid
content promotion found that Facebook produced the best results (54%) over
a year (Statista).
o In 2021, there was $26.5 million in Instagram advertising revenues in the US.

9
 Quality Step What is measured? How often? How will you ensure quality?
Q1 Condition of imported Every delivery Have workers ensure there is no defective
items raw materials.
Q2 Quality of Each component Have a worker inspect stored inventory to
manufactured parts ensure no errors or flaws have occurred.
Q3 Final inspection - 10% of every batch We will make sure each chair is suitable for
quality of completed will be tested our consumers by making sure they roll
product smoothly, can sustain weight, and collapse
easily.
Critical Brief Description Unit Cost (in appropriate How
Resource unit) many?
CR1 Industrial laser cutting machine $19,995 1
CR2 All-electric injection plastic molding machine $150,000 1
CR3 High-frequency steel pipe making machine $200,000 1
For each critical resource:
Our main facility will be 22,500 feet, located in Wilmington, North Carolina. The warehouse contains an office area, break
room, quality assurance area, and warehouse space. The warehouse area will include inventory storage (raw and finished
goods), a loading dock, a return center, a sewing station, a laser cutting machine, a plastic injection machine, and a high-
frequency steel pipe-making machine.

10
 Indicate the Why is this dimension important, given your Identify the Quality
Dimensions of industry & target market? Step(s) on the Process
Quality on which Flowchart / Service
you will focus. Blueprint to which this
corresponds.
Special Features Wheel and hinge mechanism that allows the chair Quality check 3 allows for
to be rolled and swing inward when in a seated full functionality of chair
position. convenience to be
verified.
Performance Hinge mechanism must perform every time it is Quality check 2 verifies
needed so that the chair can be transported and set standard is met before
up with ease no matter what. they enter WIP storages.
Consistency To ensure no errors or flaws have occurred and Quality check 2 verifies
performance of hinge doesn’t differ per chair. that the part was not
made defective before
entering WIP
Aesthetics With the use of breathable, anti-microbial fabric to Quality step 1 ensures we
make our chair eco-friendly. Sustainable plastics, are receiving the correct
metals, and textiles make our whole chair eco- sustainable materials we
friendly. ordered.

Use the space below to describe any additional Proactive Quality Assurance Plans that are
not connected to a specific activity on your Process Flowchart / Service Blueprint.
In order to catch mistakes before they are made we will require our management to do randomized
checks with the different departments of production, so that workers remain motivated to focus on the
quality and quantity of their work. It will also allow for assembly line workers to confront any issues
directly with management, so that they know their thoughts and feelings are being prioritized.
Describe any reactive quality assurance plans. Include a recovery plan should a customer
receive poor quality goods and/or services.
In case a product does not meet our quality assurance, we plan to reuse the plastic and steel in order to
maximize the materials for production. Our Hemp/Cotton fabric and plastics will be recycled to reduce
our carbon footprint.
In the event that the customer is unsatisfied with our chair, we will either issue the customer a
reimbursement or new chair depending on consumer preference.

If you will utilize a quality/process improvement methodology, indicate which:

☐ NA ☑ TQM ☐ Six Sigma ☐ ISO ☐ Benchmarking
☐ Other (specify what):
Note: You will not use all of them; only those with highest relevance.
Provide a specific explanation of how your chosen quality methodology relates to your
business and how it will be applied:

TQM relates with our quality assurance policies because we plan to involve our entire company in a
continual effort to prevent defects and catch any that appear. This will allow us to exceed customers
expectations with the minimal amount of effort our product requires in all the steps, from purchasing the
chair to operating it.

11
 RAW MATERIAL INVENTORY & SUPPLIER SELECTION If your organization does not have raw material inventory, please
Item(s) Supplier Name Reason for selecting this Supplier Frequency System of Mode(s) of
& Location supplier lead time of replenishment Management Transportation
(City, State, (in days) (in days)
Country)
Thermoplastic- Trident Plastics Trident Plastics provided 4-6 days 20 days Fixed order ☑Highway ☐Rail
Acrylonitrile Inc. Ivyland, exceptional customer service- interval ☐ Waterway ☐ Air
Butadiene Styrene Pennsylvania, responded promptly and answered
(ABS) U.S. additional concerns. We were
Resin/Pellets impressed with their support and
assured high-quality materials.

Recycled Organic Hemp Fortex. Hemp Fortex is an eco-friendly 42-56 days 45 days Fixed order ☑Highway ☐ Rail
Cotton and Recycled Qingdao, China company that prioritizes its interval ☑ Waterway ☐Air
Poly Heavy Weight employees' working environment
Plain Fabric while offering affordable and
durable materials.
Carbon Hot Rolled Huaping Steel Huaping offers steel at a low cost, 20-25 days 28 days Fixed order ☑ Highway ☐Rail
Steel Sheet Group. Jinan, and they focus on sustainable interval ☑ Waterway ☐Air
China manufacturing. Further, the steel
is 100% recyclable at the end of
its life.

check this box:☐NA

FINISHED GOODS INVENTORYIf your organization does not have finished goods inventory, please check this box: ☐NA
Finished goods Frequency of shipping Average level of Finished goods Amount of safety stock
produced finished goods inventory on site on site
(per hour)

At the end of 11 7 Days 440 1,040

Year 1
At the end of 18 7 Days 656 1,634
Year 2
At the end of 20 7 Days 725 1,807
Year 3
At the end of 20 7 Days 750 1,864
Year 4
At the end of 18 7 Days 695 1,734
Year 5

What is the lifespan of your finished goods inventory? ☑NA

How will you manage the perishability of Finished Goods Inventory? ☑NA

DISTRIBUTION If your organization does not require distribution, please check this box: ☐NA
Name of Reason(s) for selecting this provider/carrier Frequency of
transportation Pick Up / Drop
provider/carrier off
Dicks Sporting Goods Dicks Sporting Goods offers freight service for its suppliers. We decided that it 7 days
freight would be the best decision to use them as our carrier due to the fact that they are
selling our product in their stores and they are familiar with our quality assurance.
It would be ensured in our contract that our product makes it to the shelves.

12
Exhibit 10: Capacity
Demand Capacity Utilization Hours of Bottleneck name How will you manage /adjust the
(per (per (%) Operation and description bottleneck to ensure you can
hour) hour) appropriately serve or supply
your customers?
At the 11 11 100% 8 Stitching and sewing We will add a sewing machine and
end of Stitching on employee to work the machine in
Year 1 handles/buckles, order to increase our capacity to
sewing fabric together meet demand in year 2.

At the 17 17 100% 8 Stitching and sewing We will add another sewing machine
end of Stitching on and employee to work the machine,
Year 2 handles/buckles, along with one additional assembler
sewing fabric together in response to increased demand in
year 3.
At the 19 22 86.36% 8 Stitching and sewing N/A
end of Stitching on
Year 3 handles/buckles,
sewing fabric together
At the 19 22 86.36% 8 Stitching and sewing N/A
end of Stitching on
Year 4 handles/buckles,
sewing fabric together
At the 18 22 81.82% 8 Stitching and sewing N/A
end of Stitching on
Year 5 handles/buckles,
sewing fabric together

Show your calculations for the following parameters at the end of Year 1.
Hours of Demand/month Demand/hour Capacity/month Capacity/hour Utilization
operation/month

Hours per work day Hours of Estimated unit capacity/hour (11) x Chairs per min Demand per
(8) x works days in a operation/month sales hours per work day (.092) x Min per hour (10) /
week (5) x weeks in (160) x chair (20,801)/days (8) x days in work hour (60) x # of capacity per
a month (4) = 160 demand an hour worked per year week (5) x weeks in sewing machines hour (11) x
hours/month (11) = 1,760 (249)/hours per month (4) = 1,760 (2)= 11 100 =
chair work day (8)= chairs/month chairs/hour 90.91%
demand/month 11 chair
demand/hour

Additional resources (beyond your bottleneck) must be allocated appropriately to support operations. Identify which resources
have a significant impact on capacity at start up and describe why these are appropriate amounts of resources at start up.

Hot rolled steel and ABS plastic are required to support startup operations. These are significant because the steel makes up the
structure of our chair and the ABS is required for the chair to collapse for transportation.

Describe adjustments you will make as resource requirements vary with time. Be specific regarding which key resources
(beyond your bottleneck) will be adjusted, when and how. If you will make multiple adjustments, explain each.

The assembly times vary because human labor is required to put together all the manufactured aspects of our chair like, the
chair legs, the hinges, the wheels, and the fabric. If assembly time does not remain consistent and we fall behind demand we
will hire additional assembly line workers to keep up with demand.

How will you manage seasonality? If your organization does not have seasonal demand, please check this box: ☑NA

13
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15
16
Note 1: Accounting Method
Our company uses MACRS rates for depreciation for our fixed assets and straight-line
amortization for our wheel mechanism patent.

Note 2: Assumptions
The following assumptions are made in developing the pro forma statements:
● Accrued wages are assumed to be two weeks of the annual salaries and wages
● The accounts payable are assumed to be terms of net 30

Note 3: Investment Capital

The initial start-up costs are funded with a $200,000 secured bank loan that requires 8%
interest per year, and this loan is paid off over five years. Other start-up costs are assumed
to be funded with $300,000 of convertible notes at 5 percent and $700,000 of capital from
owners’ funds.

Note 4: Capital Investment

The initial capital investment of $373,590 is associated with the purchase of manufacturing
equipment, while $188,000 is for our manufacturing building. We don’t purchase any other
long-term assets in the first 5 years.

Note 5: Risks
There are many risks and uncertainties associated with the operations of this company.
Risks include:
● Risk related to the economy: The economic timing of our start-up places us in a
recessionary period where costs are rising and economic recovery is uncertain, and
the success of this product depends on consumer spending on a shopping product
● Risk receiving the patent: If the wheel mechanism is not considered patentable,
there is a risk of competitors imitating our design, and removing our largest
differentiating factor
● Risk related to demand: The purchase cycle in our industry is 2.7 years per
household. The infrequent purchasing of our product makes it difficult to benefit from
the effects of high brand loyalty
● Risk related to outsourcing: Our fabric and steel are sourced from China, which
creates the risk of not being able to enforce a strict standard of quality in our raw
materials and increases the risk of these materials being damaged in transit to us.
This also increases the risk of not receiving materials on time as we are in the middle
of an ongoing global supply chain crisis

17
18
Liquidity
Our current ratio in year one is negative and below the industry average, however, at the
end of year three, we are slightly above the industry average and continue increasing from
there. The quick ratio follows a similar trend; however, it doesn’t exceed the industry
average until year four.

The operating cycle we calculated is lower than the industry average in all five years, which
means we will be receiving payments at a rate that allows us to pay off our long-term loan
within the 5 years we agreed upon.

Financial Leverage
Our debt-to-equity ratio is leaning heavily towards equity in years one and two. However,
after this, the ratio progressively gets closer to the industry average in years two through
five but remains below average. The debt portion is slightly weighted towards Convertible
Notes that can be converted to equity in the future, which would balance the two debts.

Asset Management
Our inventory turnover is slightly below the industry average, except in year two where it
slightly exceeds the average. Our fixed asset turnover is much higher than the industry
average, which suggests that our investments will effectively generate sales increases over
five years.

Profitability
Our gross profit margin exceeds the industry average throughout all five years. However,
our operating profit margin is far below our industry, which may indicate that our operating
costs may be too high and may indicate we aren’t maximizing our profitability.

DuPont Analysis
The profit margin, total asset turnover, equity multiplier, and return on equity all seem to
settle close to the industry average by year five; after they begin relatively far from the
average in year one.

Valuation Method
The valuation is based on the method of multiples using the price-to-sales ratio of the
industry applied to the projected revenues for 2026. Our industry P/S average ratio is 0.65.

19
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My name is Jaclyn Douglas. I’m from Ocean Township, New Jersey. I am

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My name is Olivia Marsteller. I’m from Leesburg, Virginia. I am a junior

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