Given the proposed production model of the business, how would you evaluate the expected profitability levels in connection with the planned volume of output?

It is early 2023. Andreas Pelekangs is a very confident and charismatic 27 year-old, He is focused, keen, bard working, and passionate about furniture design and fashion. He has a real talent in designing high quality contemporary and modern furniture pieces. For the last two years he had worked with Interfurniture, a Milan (Italy) workshop, putting a 12 hour day long in order to learn about the rigorous furniture industry as quickly as he could. He graduated in June 2020 from the University of Florence, Italy. As part of his four-year interior and furniture design degree he created in co-operation with Interfurniture, Furnifun Firenze (an international furniture design and marketing Institute based in Florence) and the Furniture design institute of Paris, furniture pieces that won international recognition at international exhibitions and shows. In his designed pieces he introduced a personal character which made his design approach unique and won impressive international exhibition prizes. A considerable number of his creations decorate luxury hotels, conference and exhibition centres, in Europe and North America. Andreas is anxious about establishing his own contemporary furniture designer label. His ambition is to be one of the world's most well known designers of contemporary furniture, for which he specialized at his university studies in Florence. He believes that it is possible soon to have his own label contemporary furniture pieces exhibited in leading furniture boutiques both Europe and North America, soon becoming a recognised label internationally. Andreas has some very basic knowledge about business from his university studies but not an idea on how to start up a new business. His girlfriend Petra Marble who studies for her Finance Degree, has convinced her to help him with the financial planning to get the business off the ground. The two do not have any important personal contacts in the international contemporary furniture industry, however Andreas has met with important personalities in the international market during the exhibitions he participated as a designer in Interfurniture. Antonio Romeo the retired Chief Executive Officer (CEO) of Interfurniture, a well known Italian personality in the area, with strong links within the industry network in Europe and the United States, is a good friend of Andreas. He spotted Andreas during the time he worked at Interfurniture as a young talented man and promised to give him all his support, including the possibility of introducing him to the "big international players" of the international contemporary furniture design market. Andreas spoke already with Antonio and he was delighted with the idea of setting up his own designer label encouraging Andreas to go ahead with his plans, promising him his full support.