ACCOUNTING ANALYSIS

London Biopsy Needle Co.

London Biopsy Needle Co.

Product and the conceive of the idea

The product that we choose is the fine needle aspiration (biopsy needle). Fine Needle Aspiration (FNA) is a diagnostic procedure sometimes used to investigate superficial (just under the skin) lumps or masses.

For this purpose, we have decided to manufacture biopsy needles in the United Kingdom, as it is very costly to import and use it in diagnosis of several diseases.

Target Market

The target market of our products will be all the patients who are suffering from diseases and to diagnose their disease they need biopsy, which can only be done through biopsy needles.

Area where the product will sell and how

Biopsy needle will be available at all hospitals where biopsy surgery facility is available. We will be targeting almost all government and private, small and large operating hospitals. The product will be selling through our salespersons that will be visiting different hospitals at different locations and will give our product samples before selling to the administration of the hospital. We will be meeting with the doctors so that we can get feedback of our product and will make our product more refine and quality.

Customer Awareness

The customers of our product will be the patients who are the indirect customers for us. We will be distributing pamphlets, advertisements and the most important is through their consulting doctors when they are consulting regarding their disease.

Unique Selling Point of the Product

The unique selling point for our product is our company's head office. As many hospital representatives will come and place their orders and will provide us their design, as we are also offering customized needles.

Product Pricing

As we are producing an customized and standard product, we are charging a premium price on our products as mentioned below in the table.

Product

Price

Average Quantity/Month

Fine Needle Aspiration

£ 100

600

Core Biopsy Needles

£ 100

500

Bone Marrow

£ 120

1,500

Total

£ 320

2,600

These premium prices will charge in accordance with the International market rate. To stay competitive and yet acceptable in the market, we are delivering high quality products at lower rates as compared to our indirect competitors.

Credit Policy as Regards Debtors and Creditors

We will be making the credit policy in which we will be assuming that we will buy the raw material from our supplier partly on cash and partly on credit. We will buy the raw materials on 80% cash and 20% credit of all the purchases in a particular transaction.

Policy for our creditors will be the same policy that we will be adopting for our creditors. We will sell our products on 80% cash and 20% credit to our customers in a particular transaction.

Breakeven point calculations

We will be expecting to break even in the 6 year of our operation.

Forecasted Income Statement

According to our projection based on the market demand, we are earning Rs 8.7 million in 3 months during construction period. Our revenue generation is given below which is increasing at a rate of 12% per year as our market size increases as well as the demand of the ...