BUSINESS PLAN

(SANYU BUSINESS PLAN)

SANYU CLASSIC SCHOOL CHALK

(SCSC)

(NALUKOLONGO INDUSTRIAL AREA)

(10 /10/2017)
Th
Contents
1.0 Executive Summary...............................................................................................................................4
1.1 Business Objectives...........................................................................................................................4
1.2Mission Statement..............................................................................................................................4
1.3 Guiding Principles..............................................................................................................................5
1.4 Keys to Success..................................................................................................................................5
2.0 Company Description............................................................................................................................5
2.1 Ownership.........................................................................................................................................5
2.3 Start-Up Summary.............................................................................................................................6
2.4 Location and Facilities........................................................................................................................6
3.0 Products/Services..................................................................................................................................6
3.1 Products/Services Descriptions.........................................................................................................6
3.2 Competitive Comparison...................................................................................................................6
3.3 Product/Service Sourcing..................................................................................................................6
3.4 Future Products/Services...................................................................................................................7
4.0 Market Analysis.....................................................................................................................................7
4.1 Main Competitors..............................................................................................................................7
4.2 Market Segments...............................................................................................................................7
4.3 Market Tests......................................................................................................................................7
4.4 Target Market Segment Strategy.......................................................................................................7
4.5 Market Needs....................................................................................................................................7
4.6 Market Growth..................................................................................................................................8
4.7 Positioning.........................................................................................................................................8
5.0 Marketing Strategy and Implementation..............................................................................................8
5.1 SWOT Analysis...................................................................................................................................8
5.1.1 Strengths....................................................................................................................................8
5.1.2 Weaknesses................................................................................................................................8
5.1.3 Opportunities..............................................................................................................................8
5.1.4 Threats........................................................................................................................................8
5.2 Strategy Pyramid...........................................................................................................................9
5.3 Unique Selling Proposition (USP).......................................................................................................9
5.4 Competitive Edge...............................................................................................................................9
 5.5 Marketing Strategy and Positioning...................................................................................................9
5.5.1 Positioning Statement................................................................................................................9
5.5.2 Pricing Strategy.........................................................................................................................10
5.5.3 Promotion and Advertising Strategy.........................................................................................10
5.5.4 Marketing Programs.................................................................................................................10
5.6 Sales Strategy..................................................................................................................................10
5.6.1 Sales Forecast...........................................................................................................................10
5.7 Milestones.......................................................................................................................................11
5.7.1 Table showing Milestones........................................................................................................11
5.8 Exit Strategy.....................................................................................................................................11
6.0 Organization and Management...........................................................................................................11
6.1 Management Team.........................................................................................................................11
6.2 Accounting policy.............................................................................................................................11
6.3 Personnel Plan.................................................................................................................................11
6.4 Board of Directors............................................................................................................................12
7.0 Financial Plan.......................................................................................................................................12
7.1 Important Assumptions...................................................................................................................12
7.2 Start-up costs...................................................................................................................................13
7.3 source and use of funds...................................................................................................................13
7.4 variable costs per carton.................................................................................................................14
7.5 break-even analysis.........................................................................................................................15
7.6 operating costs................................................................................................................................18
 Sanyu business plan

1.0 Executive Summary

The Sanyu Classic School Chalk will be a one of a kind school chalk business located in
Nalukolongo Industrial Area, Kampala. The excellent location brings more than 500 immediate
customers.

The Sanyu Classic School Chalk aptly named for the aromatic white pieces of chalk that will
make writing and teaching more interesting and will fill the void of original School Chalk in the
market area. It stands out from its corporate peers with their majestic branding concepts and fast
services.

The Sanyu Classic School Chalk measures its financial success in terms of increased market
share and in earnings. With a total local market of more than UGX 120millions, this is a
tremendous opportunity! The keys to success will be the ability to offer high quality school chalk
at a competitive price, take advantage of its small size, and reliance on customized branding and
this in particular will ease market penetration and customer retention.

In order to achieve these goals, Sanyu Classic School Chalk will offer majestic customized
branding that will add value to the customers’ business & fast delivery services. Because of its
small size, Sanyu Classic can enjoy larger margins in the form of lower overhead.

1.1 Business Objectives

The primary objectives of the business plan for Sanyu Classic School Chalk are below:

 To generate maximum profits for the shareholders

 To generate funds for the expansion of new business ventures
 Be the School Chalk of Choice in the local market area.

1.2Mission Statement
Sanyu Classic School Chalk is committed to producing high quality products with customized
branding and fast customer service which they believe is the recipe for market success.

1.3 Guiding Principles

Sanyu Classic School Chalk is committed to values such as excellence, passion, quality, integrity
and leadership which allow them to navigate challenges and provide for future opportunities.
These core beliefs start with their commitment to their products and their customers. Sanyu
Classic School Chalk rewards excellence and cherishes loyalty. It will work with its customers to
build strong businesses and a secure future.
 Sanyu business plan

1.4 Keys to Success

Sanyu Classic School Chalk (SCSC) stands out from the competition. Below are their Keys to
Success:

 High Quality Products – providing exemplary products at market prices – will make
customers want to return again and again
 Majestic Customized Branding – branding will be done as per customer and this will
add value to customers’ businesses while giving ease to market penetration & customer
retention.
 Product delivery & Quick response to Customers – although this is new in this
business, it will enable the firm to market its product to the final customer and it will be
the means of distributing our product.

2.0 Company Description

Sanyu Classic School Chalk (SCSC) will be a school chalk making firm located in Nalumunye
village. The firm will serve customized flavored branded school chalk in all colors mainly white
& and other colors depending on customer orders. The firm will outsource raw materials from
nearby suppliers including packaging carton boxes, plaster of Paris (hydrated calcium sulphate),
calicium carbonate, kerosene, lubricating oil, and small packaging boxes. The firm will process
and distribute to final customers.

2.1 Ownership
Partnerships: A Partnership is defined under Section 2 of the Partnerships Act, 2010 as the
relationship that exists among persons numbering between 2 and 20 who carry on a business
together with the aim of making profits. The Sanyu Classic School chalk will be 100%
partnership business shared among member contributors.

2.3 Start-Up Summary

Sanyu Classic School chalk (SCSC) will start small in a two room building. The rent is ushs
200,000 a month. It will contain a store (one room) and production room. The production facility
equipment will contain shelves or racks made for storing materials such as finished and raw
materials, chalk making machine estimated to be seven (7) million, weighing Scale
(grammometer), Dryer Trays for holding the wet chalk sticks until they dry, Dryer for drying,
cartons (Boxes which can pack 20 packets of chalk each costs ushs 2000), Empty Packets (for
packing 150 sticks of chalk each costing ushs 300). Other startup expenses will be rent deposit,
and marketing.
2.4 Location and Facilities
The production facility will be located in highly desirable area of Nalumunye village. The
property is located in an excellent location. With an easy 6 minute drive time to Masaka road and
Enttebbe road. The location is comprised of a population of almost 100 schools within a one mile
radius, 250 schools within 2 mile radius and over 500 schools within a 5 mile radius. The facility
is in the middle of major towns like Nateete, kyengera, Busega, kajjansi, Lubowa, Zana,
Namasuba, Bunamwaya, Nyanama and others which are highly populated with school going
children and this can be a big quick fish to catch.

3.0 Products/Services
3.1 Products/Services Descriptions
Sanyu Classic School Chalk’s primary offering is writing school chalk filled with an aroma.
Complementing the chalk will be majestic customized branding that will add value to the
customers’ business & fast delivery services that will make writing and teaching more interesting
and will fill the void of original School Chalk in the market area. It stands out from its corporate
peers with their majestic branding concepts and fast services.

3.2 Competitive Comparison

The research methodology is based on other chalk producers in the area but depending on our
business strategy, these are no threats to our success.

3.3 Product/Service Sourcing

Sanyu classic school chalk (SCSC) will negotiate with suppliers for the main raw materials such
as plaster of Paris, calcium carbonate and all these will be got from hardware stores which sell
building materials. Outsourcing of packaging materials from manufacturers such as small & big
boxes, sealing tape etc and one of the suppliers will be (MAKSS PACKAGERS). Hiring of
private vehicle for transportation of raw materials to the production premises and distribution of
finished goods in case there in large quantity, secondly, hiring of Boda bodas for short distance
and low quantity distribution.

3.4 Future Products/Services

The company will provide free blackboard dusters as incentives to our customers. The company
will opt to buy a printing machinery to ease customized manufacturing of packaging boxes (in
sourcing), buying of company distribution vehicle and expanding of company premises.
4.0 Market Analysis
Currently, there is only one industry participant within the company vicinity and within 5 mile
radius and honestly there are no records that show the market share it holds.

4.1 Main Competitors

 SANA DUSTLESS SCHOOL CHALK
 CLASSIC DUSTLESS SCHOOL CHALK
 KYENJOJO DUSTLESS SCHOOL CHALK
 PLUS OTHERS FROM KENYA

4.2 Market Segments

SCSC is targeting the three top segments of the market in the premise vicinity and with time
plans will be made to expand.

1. Primary & Secondary schools near company premises

2. Whole sellers and stationeries
3. Tertiary institutions

4.3 Market Tests

Field research shows that schools and local stationeries have been purchasing school chalk at
high prices since most of them buy it from whole sellers in the city. We hope to fulfill the
customers’ demands with the introduction of our services at lower prices.

4.4 Target Market Segment Strategy

While other chalk producers use undifferentiated marketing strategy i.e. one marketing mix to
everybody, SCSC will present a unique experience by offering each target market segment a
different marketing mix. The main difference in the three target market segments will be in
pricing and product packaging.

4.5 Market Needs

Stationeries/ whole sellers are looking for manufacturers that can supply them at lower prices
because they want to make large profit margins. On the other hand, schools and tertiary
institutions are also craving for low cost suppliers in order to save money. That’s why we are
willing to offer something special. (Flavored dustless school chalk at competitive prices will
attract the market needs and addition of a flavor will enhance product differentiation)

4.6 Market Growth

Despite the economic woes, Uganda has one of highest population growth rates indicating that
the young and growing population in schools is approximately 30% (10.5 million) of the total
population. With this rate more schools and tertiary institutions are starting up to provide
education services. As more schools are started, more demand for school chalk is set up since it
has no close substitutes. This suggests that the demand will keep on growing even in the face of
an uncertain economy.
4.7 Positioning
SCSC will position itself as local school chalk producer, providing flavored school chalk to
schools, stationeries & tertiary institutions at affordable and competitive prices and offering
delivery services to customers.

5.0 Marketing Strategy and Implementation

The SCSC will provide flavored school chalk filled with an aroma at competitive prices with
customized branding and delivery services. The company will also produce for general market
and distribute to major stationeries and wholesalers.

5.1 SWOT Analysis

The SWOT analysis examines the SCSC’s strengths and weaknesses that need to be addressed. Further,
this section examines the opportunities presented to SCSC as well as potential threats.

5.1.1 Strengths
Based on its smaller size, SCSC will incur fewer overhead costs but also sell at competitive prices. The
firm will have access to the quick surrounding schools near its premises. Straight customer deliveries will
be an added advantage.

5.1.2 Weaknesses
Since SCSC is a starting firm, market penetration will not be that easy and also introduction of deliveries
in chalk business will come with its cost since it’s new in this line of business. The SCSC has a minimal
budget and is competing against larger and more established chalk producers for market share.

5.1.3 Opportunities
One of our target opportunities is the vicinity to our customers. Secondly, differentiation of our product
from the usual ones which customers are used too, thirdly we can sell our produce at factory price and
this will help acquire the market easily and retain customers. (Both primary and secondary schools plus
tertiary institutions)

5.1.4 Threats
Since this is a new form of doing business, schools may not find it quite charming to sign contracts for
suppliers of school chalk. But with our marketing and product strategy, this is going to be piece of cake
breakthrough and they will find it welcoming and interesting.

5.2 Strategy Pyramid

In the short-term, a number of promotions and activities are planned around launch of the business to
create awareness. SCSC will use social media platforms such as (what’s App & Face book), sending
promotion messages via SMS and use of sales person to introduce our product to customers.

5.3 Unique Selling Proposition (USP)

The SCSC stands out from a crowded sea of other chalk producers. What sets it apart from the
competition is primarily its smaller size combined with premium aromatic dustless writing chalk that
makes teaching even better providing so much energy and enthusiasm to teachers. Customized branding
and great customer service will set it apart.

5.4 Competitive Edge

The SCSC’s competitive edge, its size, is also its greatest attribute. Because it’s small there is no red
tape, and the firm will have room to shorten the supply chain i.e. from manufacturer to final consumer.

5.5 Marketing Strategy and Positioning

The SCSC utilizes a differentiated strategy on its market. By specifically targeting three primary
segments they can cater specifically to their needs.

Marketing mix 1 Primary & Secondary schools

Marketing mix 2 Whole sellers & stationeries

Marketing mix 3 Tertiary institutions

 Primary & Secondary schools near company premises

The SCSC will target this market simply by its well selected geographic location. Since these will be
immediate customers to company premises, services such as product delivery, credit offers and low prices
will be possible.

 Whole sellers and stationeries

The SCSC will target this market simply by its well selected location. Factory price and product delivery
will be the company motive.

 Tertiary institutions

Product delivery, price and packaging will be designed to fit their needs.

5.5.1 Positioning Statement

The SCSC is a premium aromatic dustless writing chalk that makes teaching even better providing so
much energy and enthusiasm to teaching, not only teachers love it, but also makes learning and
understanding easier for students, so why wait!, grab one for your school and go make a bright future for
those happy students.

5.5.2 Pricing Strategy

The SCSC primarily utilizes competition based pricing. The firm will also offer credit services to some
customers who prove to be honest and financially disciplined.

5.5.3 Promotion and Advertising Strategy

Online Advertising - The SCSC will advertise regularly on popular social media sites, such as Facebook
and Whats App. Compared to traditional print advertising, this is a cost effective tactic that will allow
them to reach prospects in a highly targeted way. E-mail -the SCSC will develop a simple e-mail address,
which will be used to reach out to our customers with basic information about the business, the links to
their presence on the aforementioned social media channels.

During the first six months of operation, and during the busy holiday shopping season, the business will
send enticing adverts and sms via email addresses and mobile phones respectively. The firm will also
develop a company website in the near future.

5.5.4 Marketing Programs

SCSC will emphasize sales personnel as this enables the firm to reach out to its customers easily and
conveniently.

5.6 Sales Strategy

The SCSC will use the following methods to increase sales revenue;

 Don’t leave any customer outside. (DLCO) with this strategy, all customers will be welcomed as
long as they fall within the limits of SCSC’s profit margin.
 Since plaster of Paris is the main raw material and affects the greatly on the cost of production, a
filler material (calcium carbonate) will be used to increase volume and lower the unit production
cost without impacting the quality.
 Effective distribution and wide market search of customers. This will enable SCSC to increase its
market share.
 Control of wastage of material and financial resources

5.6.1 Sales Forecast

The sales forecast assumes a 52.2% increase in revenues during term Two and 51.1% increase in term
Three. The following chart shows estimated sales over the next three terms.

terms cartons sales

forecast
term 1 120 4788000
term 2 230 9177000
term 3 450 17955000
yearly total 800 31920000
   
less cost of sales  
subsidizing costs xxxxxxx
distribution costs xxxxxxx
advertising costs xxxxxxx
total costs of sales …………..
gross margin   …………..

5.7 Milestones
Listed below are the milestones for SCSC:
5.7.1 Table showing Milestones
Milestone Date
Secure occupancy of premises 20XX(JAN)
Purchase of machinery 20XX(JAN)
Premises installation 20XX(JAN)
Open for Business 20XX(JAN)
Secure customer contracts 20XX(JAN)

5.8 Exit Strategy

In the event that SCSC would have to close the business, all assets would be sold to the willing
prospective buyer.

6.0 Organization and Management

6.1 Management Team
The decision will be made by the business partners.

6.2 Accounting policy

The SCSC will rely on both manual and computerized book keeping system to generate daily accounting
and cost activity reports. SCSC will supply these to an outside bookkeeper for preparation of annual
income taxes.

6.3 Personnel Plan

Initially, the SCSC will hire two workers one machine operator and one packaging personnel. SCSC will
evaluate if there will be need for other human resource depending on production needs.

Position Wage/Day
Machine operator 8,000
Two Packagers 16,000
The wage includes Total as Per
food. Ten working Daily Week
hours. 24,000 168,000

6.4 Board of Directors

The board of directors will constitute the business partners.

7.0 Financial Plan

The financial plan will cover the following:
Required Cost of Start-Up

Source and use of funds

Unit variable cost

Break-even analysis

7.1 Important Assumptions

 The analysis assumes that production should start 30 days before the beginning of each term for
effective marketing and distribution.
 For the first two terms, the net profit should be reimbursed to increase on the operating capital so
that the sales forecasted in the third term are maintained.
 The analysis assumes that daily production is 40 cartons and the minimum production per term
should be 280 cartons.
 The analysis also assumes that unit production cost should not exceed 19870Ushs and the unit
selling price should not be less 39900Ushs.
 The raw materials and labor costs should be as prescribed.
 Sales are cash basis –nonaccrual accounting.
 Analysis assumes that sales will increase an average of 51.5% each term.

7.2 Start-up costs

START-UP COSTS
Business Name Registration particular cost
application fees 24000
search fees 3000
certification of business name 10000
bank charges 3000
total 40000

machinery
chalk making machine 12000000
chalk dryer 900000
chalk trays 50000
weighing scale 45000
stapling machine 35000
total 13030000

post office address registration 100000

rent premises
first three months 600000

marketing costs 180000

operating capital 2384400
TOTAL START-UP COSTS 16334400

7.3 source and use of funds

Source and use of funds
source of funds Amount(shs
)
Business partners 16334400
total source of
funds

Use of Funds
start-up cost 13950000
operating capital 2384400
total use of funds 16334400
7.4 variable costs per carton
VARIABLE COSTS PER CARTON
raw materials per carton
raw material particulars cost(shs)
gypsum powder 9000
calcium carbonate 2800
lavender flavor 500
lubricant 300
TOTAL 12600
packaging cost per carton
material particulars cost(shs)
carton box 2000
empty packets 4000
sticker 300
glue 50
staples 10
sealing tape 10
TOTAL 6370
other costs per carton
particulars cost(shs)
electricity 500
labor 400
TOTAL 900
TOTAL VARIABLE COST PER 19870
CARTON

fixed cost cost(shs

)
rent 200000

From the table above, the cost of production per carton is nineteen thousand eight hundred seventy
shillings only (19,870shs). The fixed cost is rent that is approximated to two hundred thousand shillings
(200,000shs).
7.5 break-even analysis

BREAKE-EVEN ANALYSIS

Fixed cost 200000

Variable cost 19870
Number of units 120
Unit price 39900

cartons fixed cost variable cost total cost total revenue total profit t profit/t cost ratio t profit/t rev
0 200000 0 200000 0 -200000 -1
1 200000 19870 219870 39900 -179970 -0.818529131 -4.510526316
2 200000 39740 239740 79800 -159940 -0.667139401 -2.004260652
3 200000 59610 259610 119700 -139910 -0.53892377 -1.168838764
4 200000 79480 279480 159600 -119880 -0.428939459 -0.75112782
5 200000 99350 299350 199500 -99850 -0.333556038 -0.500501253
6 200000 119220 319220 239400 -79820 -0.25004699 -0.333416876
7 200000 139090 339090 279300 -59790 -0.17632487 -0.214070892
8 200000 158960 358960 319200 -39760 -0.110764431 -0.124561404
9 200000 178830 378830 359100 -19730 -0.052081409 -0.054942913
10 200000 198700 398700 399000 300 0.000752445 0.00075188
11 200000 218570 418570 438900 20330 0.048570132 0.046320346
12 200000 238440 438440 478800 40360 0.092053645 0.084294069
13 200000 258310 458310 518700 60390 0.131766708 0.11642568
14 200000 278180 478180 558600 80420 0.168179347 0.143967061
15 200000 298050 498050 598500 100450 0.201686578 0.167836257
16 200000 317920 517920 638400 120480 0.232622799 0.188721805
17 200000 337790 537790 678300 140510 0.261272988 0.207150229
18 200000 357660 557660 718200 160540 0.287881505 0.22353105
19 200000 377530 577530 758100 180570 0.312659083 0.238187574
20 200000 397400 597400 798000 200600 0.335788416 0.251378446
21 200000 417270 617270 837900 220630 0.357428678 0.263313045
22 200000 437140 637140 877800 240660 0.377719183 0.274162679
23 200000 457010 657010 917700 260690 0.396782393 0.284068868
24 200000 476880 676880 957600 280720 0.414726392 0.293149541
25 200000 496750 696750 997500 300750 0.431646932 0.301503759
26 200000 516620 716620 1037400 320780 0.447629148 0.309215346
27 200000 536490 736490 1077300 340810 0.462748985 0.316355704
28 200000 556360 756360 1117200 360840 0.477074409 0.322986037
29 200000 576230 776230 1157100 380870 0.490666426 0.329159105
30 200000 596100 796100 1197000 400900 0.503579952 0.334920635
31 200000 615970 815970 1236900 420930 0.515864554 0.340310454
32 200000 635840 835840 1276800 440960 0.527565084 0.345363409
33 200000 655710 855710 1316700 460990 0.538722231 0.350110124
34 200000 675580 875580 1356600 481020 0.549372987 0.354577621
35 200000 695450 895450 1396500 501050 0.559551064 0.358789832
36 200000 715320 915320 1436400 521080 0.569287244 0.362768031
37 200000 735190 935190 1476300 541110 0.578609694 0.366531193
38 200000 755060 955060 1516200 561140 0.587544238 0.370096293
39 200000 774930 974930 1556100 581170 0.596114593 0.373478568
40 200000 794800 994800 1596000 601200 0.604342581 0.376691729

41 200000 814670 1014670 1635900 621230 0.612248317 0.379748151

42 200000 834540 1034540 1675800 641260 0.619850368 0.382659029
43 200000 854410 1054410 1715700 661290 0.627165903 0.385434517
44 200000 874280 1074280 1755600 681320 0.63421082 0.388083846
45 200000 894150 1094150 1795500 701350 0.640999863 0.390615427
46 200000 914020 1114020 1835400 721380 0.647546723 0.39303694
47 200000 933890 1133890 1875300 741410 0.653864131 0.39535541
48 200000 953760 1153760 1915200 761440 0.659963944 0.397577277
49 200000 973630 1173630 1955100 781470 0.665857212 0.399708455
50 200000 993500 1193500 1995000 801500 0.671554252 0.401754386
51 200000 1013370 1213370 2034900 821530 0.677064704 0.403720085
52 200000 1033240 1233240 2074800 841560 0.682397587 0.405610179
53 200000 1053110 1253110 2114700 861590 0.687561347 0.40742895
54 200000 1072980 1272980 2154600 881620 0.692563905 0.409180358
55 200000 1092850 1292850 2194500 901650 0.697412693 0.410868079
56 200000 1112720 1312720 2234400 921680 0.702114693 0.412495525
57 200000 1132590 1332590 2274300 941710 0.706676472 0.414065866
58 200000 1152460 1352460 2314200 961740 0.71110421 0.415582059
59 200000 1172330 1372330 2354100 981770 0.715403729 0.417046854
60 200000 1192200 1392200 2394000 1001800 0.71958052 0.418462824
61 200000 1212070 1412070 2433900 1021830 0.723639763 0.419832368
62 200000 1231940 1431940 2473800 1041860 0.727586351 0.421157733
63 200000 1251810 1451810 2513700 1061890 0.731424911 0.422441023
64 200000 1271680 1471680 2553600 1081920 0.735159817 0.423684211
65 200000 1291550 1491550 2593500 1101950 0.738795213 0.424889146
66 200000 1311420 1511420 2633400 1121980 0.742335023 0.426057568
67 200000 1331290 1531290 2673300 1142010 0.745782967 0.427191112
68 200000 1351160 1551160 2713200 1162040 0.749142577 0.428291317
69 200000 1371030 1571030 2753100 1182070 0.752417204 0.429359631
70 200000 1390900 1590900 2793000 1202100 0.755610032 0.430397422
71 200000 1410770 1610770 2832900 1222130 0.758724088 0.43140598
72 200000 1430640 1630640 2872800 1242160 0.761762253 0.432386522
73 200000 1450510 1650510 2912700 1262190 0.764727266 0.4333402
74 200000 1470380 1670380 2952600 1282220 0.767621739 0.434268103
75 200000 1490250 1690250 2992500 1302250 0.770448159 0.435171261
76 200000 1510120 1710120 3032400 1322280 0.773208898 0.436050653
77 200000 1529990 1729990 3072300 1342310 0.775906219 0.436907203
78 200000 1549860 1749860 3112200 1362340 0.778542283 0.43774179
79 200000 1569730 1769730 3152100 1382370 0.781119154 0.438555249
80 200000 1589600 1789600 3192000 1402400 0.783638802 0.439348371

81 200000 1609470 1809470 3231900 1422430 0.786103113 0.44012191

82 200000 1629340 1829340 3271800 1442460 0.78851389 0.440876582
83 200000 1649210 1849210 3311700 1462490 0.790872859 0.441613069
84 200000 1669080 1869080 3351600 1482520 0.793181672 0.442332021
85 200000 1688950 1888950 3391500 1502550 0.795441912 0.443034056
86 200000 1708820 1908820 3431400 1522580 0.797655096 0.443719765
87 200000 1728690 1928690 3471300 1542610 0.799822678 0.44438971
89 200000 1768430 1968430 3551100 1582670 0.804026559 0.445684436
90 200000 1788300 1988300 3591000 1602700 0.806065483 0.44631022
91 200000 1808170 2008170 3630900 1622730 0.808064058 0.446922251
92 200000 1828040 2028040 3670800 1642760 0.810023471 0.447520976
93 200000 1847910 2047910 3710700 1662790 0.811944861 0.448106826
94 200000 1867780 2067780 3750600 1682820 0.813829324 0.448680211
95 200000 1887650 2087650 3790500 1702850 0.815677915 0.449241525
96 200000 1907520 2107520 3830400 1722880 0.817491649 0.449791145
97 200000 1927390 2127390 3870300 1742910 0.819271502 0.450329432
98 200000 1947260 2147260 3910200 1762940 0.821018414 0.450856734
99 200000 1967130 2167130 3950100 1782970 0.822733292 0.451373383
100 200000 1987000 2187000 3990000 1803000 0.82441701 0.451879699
 101 200000 2006870 2206870 4029900 1823030 0.826070407 0.452375989
102 200000 2026740 2226740 4069800 1843060 0.827694297 0.452862549
103 200000 2046610 2246610 4109700 1863090 0.829289463 0.45333966
104 200000 2066480 2266480 4149600 1883120 0.830856659 0.453807596
105 200000 2086350 2286350 4189500 1903150 0.832396615 0.454266619
106 200000 2106220 2306220 4229400 1923180 0.833910035 0.454716981
107 200000 2126090 2326090 4269300 1943210 0.835397599 0.455158925
108 200000 2145960 2345960 4309200 1963240 0.836859964 0.455592685
109 200000 2165830 2365830 4349100 1983270 0.838297764 0.456018487
110 200000 2185700 2385700 4389000 2003300 0.839711615 0.456436546
111 200000 2205570 2405570 4428900 2023330 0.841102109 0.456847073
112 200000 2225440 2425440 4468800 2043360 0.84246982 0.457250269
113 200000 2245310 2445310 4508700 2063390 0.843815304 0.457646328
114 200000 2265180 2465180 4548600 2083420 0.845139097 0.458035439
115 200000 2285050 2485050 4588500 2103450 0.846441721 0.458417784
116 200000 2304920 2504920 4628400 2123480 0.84772368 0.458793536
117 200000 2324790 2524790 4668300 2143510 0.84898546 0.459162864
118 200000 2344660 2544660 4708200 2163540 0.850227535 0.459525933
119 200000 2364530 2564530 4748100 2183570 0.851450363 0.459882901
120 200000 2384400 2584400 4788000 2203600 0.852654388 0.460233918

150 200000 2980500 3180500 5985000 2804500 0.881779594 0.468588137

280 200000 5563600 5763600 11172000 5408400 0.938371851 0.484103115
1800 200000 35766000 35966000 71820000 35854000 0.996885948 0.499220273
2500 200000 49675000 49875000 99750000 49875000 1 0.5

7.6 operating costs

WEEKLY OPERATING COSTS
DAY cartons per day cumulative output cost per day cumulative cost
DAY 1 40 40 794800 794800
DAY 2 40 80 794800 1589600
DAY 3 40 120 794800 2384400
DAY 4 40 160 794800 3179200
DAY 5 40 200 794800 3974000
DAY 6 40 240 794800 4768800
DAY 7 40 280 794800 5563600
TOTA 280 5563600
L

The machine capacity is 12000 pieces, assuming 10 working hours a day; a machine can produce 120000
pieces of chalk which is equivalent to 40 cartons per day. In a week, a total of 280 cartons can be
produced. 40 cartons can be produced at a cost of seven hundred ninety four thousand eight hundred
shillings only per day (794800shs). But for start, since we are limited with capital, we assume a three days
operating cost. i.e. (2384400shs)