Question
To complete your report on the feasibility and profitability of exporting mens shirts, the marketing manager has asked you to prepare a sales forecast from
To complete your report on the feasibility and profitability of exporting mens shirts, the marketing manager has asked you to prepare a sales forecast from 2020 to 2024, using the initial order of 200,000 units as demand for 2020 and the FOB Manila price per unit (FCL). You have been asked to further assume that the company expects demand to increase by 2.5% every year and that the inflation rate per annum is 4%.
Table 1 Manufacturing Details | ||
Direct Materials (for 200,000 units) | 30,000,000 | Php/yr |
Wage (per worker) | 520 | Php/day |
Laborers | 25 | Workers |
Working Days | 264 | days/yr |
Factory Overhead | 25% | of direct labor cost |
Total Quantity (50 pieces/box) | 200,000 | pcs/yr |
Table 2 Packing Description: | ||
Carton Dimensions (per box) | 80 x 50 x 40 | cms |
Cubic Meter (per box) | 0.16 | cbm |
Gross Weight (per box) | 15 | Kgs |
Table 3 Trucking: | ||
FCL (1 x 40' container van = 67.7 cbm capacity) | 15,000 | Php/trip |
LCL (1 delivery van = 40 cbm capacity) | 15,000 | Php/trip |
Table 4 Arrastre and Wharfage: | ||
Arrastre (FCL) | 7,500 | Php/CV |
Arrastre (LCL) | 150 | Php/cbm |
Wharfage (FCL) | 800 | Php/CV |
Wharfage (LCL) | 40 | Php/cbm |
Table 5 Other Information: | ||
Documentation Processing | 1500 | Php |
Loading Expenses | 12,000 | Php |
Miscellaneous Expenses (BL issuance, advance manifest, etc) | 500 | US$ |
Agent's Commission | 0.75 | US$/pc |
Mark-up | 35% | of total FOB cost |
Exchange Rate | 48 | Php=US$1 |
Sales Projection
Year | Projected Sales Volume (units) | FOB Manila Price/Unit (Php) | Projected Sales Value (Php) |
2020 | |||
2021 | |||
2022 | |||
2023 | |||
2024 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started