A technical project for construction and operation of a tile production plant has been developed, production capacity Qm = 1400 (thous. units/year). According to the project, the annual fixed costs are FC = 2950 (thous. /year) and the variable production costs per unit are vc = 0.242 (/unit).The market price of tiles at the time of designing the plant is defined as p = 0,865 (/unit). Capital investments for creation of the plant are defined as K = 4150 (thous. ). The investment efficiency ratio (the required rate of return) (r) set by the company is 0,20. Changes caused by inflation can be disregarded.

In the calculations we assume that the planned production quantity of tiles Qplan is 85 % of the plants capacity; for our purpose fixed taxes are determined as from the value of the fixed cost (= 0,215), variable taxes, which depend on the company's operating results, are equal to from the balance sheet profit ( = 0,15).

It is necessary to calculate the following indicators that characterize the efficiency of the future business:

1. planned annual volume of tiles (quantity); 2. annual revenue from the planned sales of tiles; 3. annual variable costs of the planned production volume; 4. fixed costs of a unit of production; 5. unit cost of production; 6. total costs of production of the planned annual production volume; 7. annual profit of the company; 8. profitability of tile production (Rent = Pr / TC); 9. critical volume of production; 10. capacity utilization rate at the break-even point (loss-free level); 11. financial stability reserves, units, , %; 12. total tax amount (no tax exemption); 13. critical volume of production, taking taxes into account; 14. return on investment ROI (taking into account business risk); 15. payback period.