Cash provided by investors in August 2012 - R400000.00
Long term laon - R200000.00 in August. Interest rate at 18% per year is payable monthly commercing 31 August. 20% of the loan is payable on 31 October2012.
Machinery to be purchased on 2 August for R350000.00 cash
Production will commence on 5 Aug 2012 and 60% of September's sales will be purchased in August. There after the production will consists of 60% of the current month sales and 40% 0f the following month.
Estimated sales at R30 per units: Aug - 0, Sept - 4800, Oct - 6000, Nov - 8000. These are expected to compromise 50% of total sales and 5% discount on sales. Variable cost per unit dircet materials - R9, direct labour - R5, variable overhead - R3 monthly . Marketing cost are expected to be R50000.00 for Aug and 10% thereafter.