COST & REVENUE

Cost & Revenue



Cost & Revenue

The small business project that I have been operating for a year is a Bakery & Confectionary shop. The major products that I keep in my bakery are cakes, snacks, sweets, biscuits, and bread and general items. I have opened my first outlet in the posh area and then after few months I want to open the second outlet in the low income area in order to cover the cross section of the public. For this expansion, I need bank loan. Like my first bakery, the second bakery outlet will only be a retail outlet where I will purchase my items from the specialized bread manufacturing units. This particular business segment is labour intensive as the timings for my bakery will be from 6 am to 12 pm and I will run 2 shifts for the convenience of the employees. The number of employees that I will keep are 20 and 10 employees will be required per shift. Although the pure working hours in both the shifts will be 3 to 4 hours but because of the customer's availability, the single shift will cover 8 working hours.

The plants and machinery that I will require for my bakery will include variety of ovens to meet the requirements for the usage of different items like the cakes, pizza, pastries etc. The initial capacity of the bakery has been decided on the basis of aggregate sales over different periods of time. The sales revenue will be high during the festival and holiday season. The bakery items sales will have a share of 73% of total sales and general item sales will cover the remaining 27% of the total sales. An annual increase of 5% is expected in the total sales. However, it will all depend ...