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Product Year 1 Year 2 Year 3 Year 4 Year 5Zest Cola 300,000,000 380,000,000 1,000,000,000 1,700,000,000 2,700,000,000

Zest White 225,000,000 285,000,000 750,000,000 1,275,000,000 2,025,000,000

Zest Orange 225,000,000 285,000,000 750,000,000 1,275,000,000 2,025,000,000

Zest Appachino 225,000,000 285,000,000 750,000,000 1,275,000,000 2,025,000,000

Zest Lem 150,000,000 190,000,000 500,000,000 850,000,000 1,350,000,000

Zest Ice 225,000,000 285,000,000 750,000,000 1,275,000,000 2,025,000,000

Zest Fruitpunch 150,000,000 190,000,000 500,000,000 850,000,000 1,350,000,000

Zest Minwa 125,000,000 130,000,000 425,000,000 550,000,000 1,000,000,000

Zest Voltage 17,000,000 23,000,000 50,000,000 75,000,000 100,000,000

TOTAL 1,642,000,000 2,053,000,000 5,475,000,000 9,125,000,000 14,600,000,000

Individual Revenue Generation

Individual Production in Units (Bottles)

Product Year 1 Year 2 Year 3 Year 4 Year 5Zest Cola 12,000,000 15,200,000 40,000,000 68,000,000 108,000,000

Zest White 9,000,000 11,400,000 30,000,000 51,000,000 81,000,000

Zest Orange 9,000,000 11,400,000 30,000,000 51,000,000 81,000,000

Zest Appachino 9,000,000 11,400,000 30,000,000 51,000,000 81,000,000

Zest Lem 6,000,000 7,600,000 20,000,000 34,000,000 54,000,000

Zest Ice 9,000,000 11,400,000 30,000,000 51,000,000 81,000,000

Zest Fruitpunch

6,000,000 7,600,000 20,000,000 34,000,000 54,000,000

Zest Minwa 4,901,961 5,098,039 16,666,667 21,568,627 39,215,686

Zest Voltage 188,889 255,556 555,556 833,333 1,111,111

TOTAL 65,090,850 81,353,595 217,222,222 362,401,961 580,326,797

Production of Zest Cola in Units (Different Packaging)

Product Year 1 Year 2 Year 3 Year 4 Year 5Junior 1,200,000 1,520,000 4,000,000 6,800,000 10,800,000

Regular 4,800,000 6,080,000 16,000,000 27,200,000 43,200,000

Can 2,400,000 3,040,000 8,000,000 13,600,000 21,600,000

Youth 1,440,000 1,824,000 4,800,000 8,160,000 12,960,000

Family pack 1,200,000 1,520,000 4,000,000 6,800,000 10,800,000

Jumbo 960,000 1,216,000 3,200,000 5,440,000 8,640,000

TOTAL 12,000,000 15,200,000 40,000,000 68,000,000 108,000,000

Production of Zest White in Units (Different Packaging)

Product Year 1 Year 2 Year 3 Year 4 Year 5Junior 900,000 1,140,000 3,000,000 5,100,000 8,100,000

Regular 3,600,000 4,560,000 12,000,000 20,400,000 32,400,000

Can 1,800,000 2,280,000 6,000,000 10,200,000 16,200,000

Youth 1,080,000 1,368,000 3,600,000 6,120,000 9,720,000

Family pack 900,000 1,140,000 3,000,000 5,100,000 8,100,000

Jumbo 720,000 912,000 2,400,000 4,080,000 6,480,000

TOTAL 9,000,000 11,400,000 30,000,000 51,000,000 81,000,000

Production of Zest Orange in Units (Different Packaging)


Regular 3,600,000 4,560,000 12,000,000 20,400,000 32,400,000

Can 1,800,000 2,280,000 6,000,000 10,200,000 16,200,000

Youth 1,080,000 1,368,000 3,600,000 6,120,000 9,720,000

Family pack 900,000 1,140,000 3,000,000 5,100,000 8,100,000

Jumbo 720,000 912,000 2,400,000 4,080,000 6,480,000

TOTAL 9,000,000 11,400,000 30,000,000 51,000,000 81,000,000

Production of Zest Appachino in Units (Different Packaging)


Regular 3,600,000 4,560,000 12,000,000 20,400,000 32,400,000

Can 1,800,000 2,280,000 6,000,000 10,200,000 16,200,000

Youth 1,080,000 1,368,000 3,600,000 6,120,000 9,720,000

Family pack 900,000 1,140,000 3,000,000 5,100,000 8,100,000

Jumbo 720,000 912,000 2,400,000 4,080,000 6,480,000

TOTAL 9,000,000 11,400,000 30,000,000 51,000,000 81,000,000Production of Zest Lem in Units (Different Packaging)

Product Year 1 Year 2 Year 3 Year 4 Year 5Junior 600,000 760,000 2,000,000 3,400,000 5,400,000

Regular 2,400,000 3,040,000 8,000,000 13,600,000 21,600,000

Can 1,200,000 1,520,000 4,000,000 6,800,000 10,800,000

Youth 720,000 912,000 2,400,000 4,080,000 6,480,000

Family pack 600,000 760,000 2,000,000 3,400,000 5,400,000

Jumbo 480,000 608,000 1,600,000 2,720,000 4,320,000

TOTAL 6,000,000 7,600,000 20,000,000 34,000,000 54,000,000

Production of Zest Ice in Units (Different Packaging)


Regular 3,600,000 4,560,000 12,000,000 20,400,000 32,400,000

Can 1,800,000 2,280,000 6,000,000 10,200,000 16,200,000

Youth 1,080,000 1,368,000 3,600,000 6,120,000 9,720,000

Family pack 900,000 1,140,000 3,000,000 5,100,000 8,100,000

Jumbo 720,000 912,000 2,400,000 4,080,000 6,480,000

TOTAL 9,000,000 11,400,000 30,000,000 51,000,000 81,000,000Production of Zest Fruitpunch in Units (Different Packaging)

Product Year 1 Year 2 Year 3 Year 4 Year 5

Junior 600,000 760,000 2,000,000 3,400,000 5,400,000

Regular 2,400,000 3,040,000 8,000,000 13,600,000 21,600,000

Can 1,200,000 1,520,000 4,000,000 6,800,000 10,800,000

Youth 720,000 912,000 2,400,000 4,080,000 6,480,000

Family pack 600,000 760,000 2,000,000 3,400,000 5,400,000

Jumbo 480,000 608,000 1,600,000 2,720,000 4,320,000

TOTAL 6,000,000 7,600,000 20,000,000 34,000,000 54,000,000

Production of Zest Minwa in Units (Different Packaging)

Product Year 1 Year 2 Year 3 Year 4 Year 5Small 1,470,588 1,529,412 5,000,000 6,470,588 11,764,706

Large 2,941,177 3,058,823 10,000,000 12,941,176 23,529,412

Jumbo 490,196 509,804 1,666,667 2,156,863 3,921,569

TOTAL 4,901,961 5,098,039 16,666,667 21,568,627 39,215,686

Production of Zest Voltage in Units (Different Packaging)

Product Year 1 Year 2 Year 3 Year 4 Year 5Mini 132,222 178,889 388,889 583,333 777,778

Mighty 56,667 76,667 166,667 250,000 333,333

TOTAL 188,889 255,556 555,556 833,333 1,111,111

AssumptionsThe sales revenue and sales in units mentioned earlier has been posted after the following calculations:

The main products of ZEST contribute in the total revenue with the following percentages:

Product Contribution in SalesZest Cola 20%Zest White 15%Zest Orange 15%Zest Appachino 15%Zest Lem 10%Zest Fruitpunch 10%Zest Ice 15%

100%

The contribution of Zest Minwa and Zest Voltage is expected to fluctuate and that is the reason why these 2 products don’t show a trendy increase as sales revenue increases.

The actual raw material cost for the ZEST products per litre are as follows:

Zest Cola Rs. 26Zest White Rs. 26Zest Orange Rs. 26Zest Appachino Rs. 26Zest Lem Rs. 26Zest Fruitpunch Rs. 26Zest Ice Rs. 26

Zest Minwa (Mineral Water) Rs. 14Zest Votage (Energy Drink) Rs. 152

Zest Cola, White, Orange, Appachino, Lem and Ice are being offered in the following packaging (the expected demands for these are mentioned besides each packaging):

Product Packaging Price Expected ShareJunior 175 ml Rs. 10 10%Regular 250 ml Rs. 15 40%Can 330 ml Rs. 25 20%Youth 500 ml Rs. 20 12%Family 1.5 ltr Rs. 50 10%Jumbo 2.5 ltr Rs. 70 8%

The table below portrays the assumptions made to come up with the mentioned figures:

\

If 100 bottles are sold as per the expected share, total revenue generated would be Rs. 2500 and the total cost of raw materials will be Rs. 1,543.

Product Quantity (in ml)

Unit Price

Expected Share (Units)

Total Quantity

Total Price

Junior 175 Rs. 10 10 1,750 Rs. 100

Regular 250 Rs. 15 40 10,000 Rs. 600

Can 330 Rs. 25 20 6,600 Rs. 500

Youth 500 Rs. 20 12 6,000 Rs. 240

Family pack 1,500 Rs. 50 10 15,000 Rs. 500

Jumbo 2,500 Rs. 70 8 20,000 Rs. 560

TOTALS (Units, Litres, Revenue) 100 59.35 Ltr 2,500

TOTAL Cost of Raw Materials ( Total Litres x Cost per Litre) 1,543.1

The following table displays the assumptions regarding sales and cost of production of Zest Minwa.

If 100 bottles are sold, the total revenue generated would be Rs. 2550 and the total cost of raw materials will be Rs. 2,170.


Unit Price


Total Quantity

Total Price

Small 500 Rs. 10 30 15,000 Rs. 300

Large 1,500 Rs. 25 60 90,000Rs.

1,500

Jumbo 5,000 Rs. 75 10 50,000 Rs. 750

TOTALS (Units, Litres, Revenue) 100 155 Ltr 2,550TOTAL Cost of Raw Materials ( Total Litres x Cost per Litre) 2170

The following table displays the assumptions regarding sales and cost of production of Zest Voltage.


Unit Price


Total Quantity

Total Price

Mini 330 Rs. 75 70 23,100 Rs. 5,250

Mighty 600Rs. 125

30 18,000 Rs. 3,750

TOTALS (Units, Litres, Revenue) 100 41.10 Ltr 9,000TOTAL Cost of Raw Materials ( Total Litres x Cost per Litre) 6,247.2

If 100 bottles are sold, the total revenue generated would be Rs. 9,000 and the total cost of raw materials will be Rs. 6,247.

For the 1st Year’s COGS of Zest products:

Zest Cola 1500,000,000 x 0.2 / 2,500 x 59.35 x 26 = 185,172,000Zest White 1500,000,000 x 0.15 / 2,500 x 59.35 x 26 = 138,879,000Zest Orange 1500,000,000 x 0.15 / 2,500 x 59.35 x 26 = 138,879,000Zest Appachino 1500,000,000 x 0.15 / 2,500 x 59.35 x 26 = 138,879,000Zest Lem 1500,000,000 x 0.10 / 2,500 x 59.35 x 26 = 92,586,000Zest Fruitpunch 1500,000,000 x 0.15 / 2,500 x 59.35 x 26 = 92,586,000Zest Ice 1500,000,000 x 0.15 / 2,500 x 59.35 x 26 = 138,879,000Zest Minwa 125,000,000 / 2,550 x 155 x 14 = 106,372,549Zest Votage 17,000,000 / 9,000 x41.1 x 152 = 11,800,267

The costs of 2nd, 3rd, 4th and 5th year are calculated similarly.

All raw material is converted to finished goods because of the perishable nature of ZEST’s products, thus, no ending raw material inventory is to be maintained. Finished Goods, h however, inventory is maintained.

Individual Cost of SellingYear 1

Cost Zest Cola Zest WhiteZest

OrangeZest

AppachinoZest Lem Zest Ice

Zest Fruitpunch

Zest MinwaZest

Voltage

Total Raw Material

Cost*216,034,000 154,310,000 154,310,000 154,310,000 123,448,000 154,310,000 123,448,000 127,647,059 17,353,333

Total Labour Cost**

1,412,000 1,412,000 1,412,000 1,412,000 1,412,000 1,412,000 1,412,000 1,412,000 1,412,000

Factory Overheads***

2,511,000 2,511,000 2,511,000 2,511,000 2,511,000 2,511,000 2,511,000 2,543,000 2,511,000

Cost of Goods Manufactured

219,957,000 158,233,000 158,233,000 158,233,000 127,371,000 158,233,000 127,371,000 131,602,059 21,276,333

Finished Goods

(Opening)0 0 0 0 0 0 0 0

Finished Goods

(Ending)(30,862,000) (15,431,000) (15,431,000) (15,431,000) (30,862,000) (15,431,000) (30,862,000) (21,274,510) (5,553,067)

Total Cost of Goods Sold

189,095,000 142,802,000 142,802,000 142,802,000 96,509,000 142,802,000 96,509,000 110,327,549 15,723,266

Assumptions*Raw material includes Direct and Indirect raw materials. The total raw material comprises of the water, syrup and

artificial flavourings. The cost of carbonating is also included.

**Beverages manufacturing plants need not to be operated by extensive labour, and increased production will not require further labour costs to be incurred. Thus, all labour is being treated as indirect labour and salaries expenses totaling 12,708,000 are spread evenly.

***Factory Overheads include Utilities amounting to 14,340,000 as well as other expenditure approximated at 447,000 and Depreciation spread evenly.

All raw material is converted to finished goods because of the perishable nature of ZEST’s products, thus, no ending raw material inventory is to be maintained. Finished Goods inventory, however, is maintained.

Individual Cost of Selling

Year 2Cost Zest Cola Zest White Zest

OrangeZest

AppachinoZest Lem Zest Ice Zest

FruitpunchZest Minwa Zest

Voltage

Total Raw Material

Cost*246,896,000 185,172,000 185,172,000 185,172,000 123,448,000 185,172,000 123,448,000 127,647,059 20,824,000

Total Labour Cost** 2,547,888 2,547,888 2,547,888 2,547,888 2,547,888 2,547,888 2,547,888 2,547,888 2,547,888

Factory Overheads*** 2,434,150 2,434,150 2,434,150 2,434,150 2,434,150 2,434,150 2,434,150 2,783,000 2,434,150

Cost of Goods Manufactured 251,878,038 190,154,038 190,154,038 190,154,038 128,430,038 190,154,038 128,430,038 132,977,947 25,806,038

Finished Goods

(Opening)30,862,000 15,431,000 15,431,000 15,431,000 30,862,000 15,431,000 30,862,000 21,274,510 5,553,067

Finished Goods

(Ending)(43,206,800) (15,431,000) (15,431,000) (15,431,000) (37,034,400) (24,689,600) (37,034,400) (38,294,118) (10,412,000)

Total Cost of Goods Sold 239,533,238 190,154,038 190,154,038 190,154,038 122,257,638 190,154,038 122,257,638 115,958,339 20,947,105


Year 3

Cost Zest Cola Zest White Zest Orange

Zest Appachino

Zest Lem Zest Ice Zest Fruitpunch

Zest Minwa

Zest Voltage

Total Raw Material

Cost*586,378,000 450,585,200 450,585,200 450,585,200 339,482,000 450,585,200 339,482,000 340,392,157 27,765,333



Cost of Goods Manufactured 591,298,558 455,505,758 455,505,758 455,505,758 344,402,558 455,505,758 344,402,558 345,675,045 32,685,891

Finished Goods

(Opening)30,862,000 15,431,000 15,431,000 15,431,000 37,034,400 24,689,600 37,034,400 38,294,118 10,412,000

Finished Goods

(Ending)(43,206,800) (3,086,200) (3,086,200) (3,086,200) (6,172,400) (3,086,200) (6,172,400) (1,234,480) (3,470,667)

Total Cost of Goods Sold 578,953,758 467,850,558 467,850,558 467,850,558 375,264,558 467,850,558 375,264,558 382,734,683 39,627,225


Year 4Cost Zest Cola Zest White Zest Orange Zest

AppachinoZest Lem Zest Ice Zest

FruitpunchZest

MinwaZest

Voltage

Total Raw Material

Cost*1,080,170,000 771,550,000 771,550,000 771,550,000 555,516,000 771,550,000 555,516,000 489,313,725 52,060,000



Cost of Goods Manufactured 1,085,041,379 776,421,379 776,421,379 776,421,379 560,387,379 776,421,379 560,387,379 494,557,613 56,931,379

Finished Goods

(Opening)12,344,800 3,086,200 3,086,200 3,086,200 6,172,400 3,086,200 6,172,400 1,234,480 3,470,667

Finished Goods

(Ending)(43,206,800) (1,543,100) (1,543,100) (1,543,100) (37,034,400) (1,543,100) (37,034,400) (3,394,820) (20,824,000)

Total Cost of Goods Sold 1,054,179,379 777,964,479 777,964,479 777,964,479 529,525,379 777,964,479 529,525,379 492,397,273 39,578,046


Year 5

Cost Zest Cola Zest White Zest Orange Zest Appachino

Zest Lem Zest Ice Zest Fruitpunch

Zest Minwa Zest Voltage

Total Raw Material

Cost*1,697,410,000 1,234,480,000 1,234,480,000 1,234,480,000 802,412,000 1,234,480,000 802,412,000 808,431,373 62,472,000


Factory Overheads**

*2,323,491 2,323,491 2,323,491 2,323,491 2,323,491 2,323,491 2,323,491 2,696,000 2,323,491

Cost of Goods

Manufactured

1,702,281,379 1,239,351,379 1,239,351,379 1,239,351,379 807,283,379 1,239,351,379 807,283,379 813,675,261 67,343,379

Finished Goods

(Opening)43,206,800 1,543,100 1,543,100 1,543,100 37,034,400 1,543,100 37,034,400 3,394,820 20,824,000

Finished Goods

(Ending)(74,068,800) 0 0 0 (6,172,400) 0 (6,172,400) (308,620)

(13,882,667)

Total Cost of Goods Sold 1,671,419,379 1,240,894,479 1,240,894,479 1,240,894,479 838,145,379 1,240,894,479 838,145,379 816,761,461 74,284,712

Schedule for Depreciation (Machinery and Equipment)

Machinery & Equipment

Total Cost

Year 1Book Value

Year 2Book Value

Year 3Book Value

Year 4

Book Value

IB-04 Analysis Assembly 2,520,000 504,000 2,016,000 403,200 1,612,800 322,560 1,290,240 258,048 1,032,192Brix Controller 185,000 37,000 148,000 29,600 118,400 23,680 94,720 18,944 75,776CO2 Controller 120,000 24,000 96,000 19,200 76,800 15,360 61,440 12,288 49,152

Remote Display Unit 558,000 111,600 446,400 89,280 357,120 71,424 285,696 57,139 228,557

MULTILAB III Remote Command

1,059,000 211,800 847,200 169,440 677,760 135,552 542,208 108,442 433,766

Angel 100BPH (Filling) 810,000 162,000 648,000 129,600 518,400 103,680 414,720 82,944 331,776

Automatic Snapcap Capping Machine

1,585,000 317,000 1,268,000 253,600 1,014,400 202,880 811,520 162,304 649,216

RGY2T-1G-Linear-Filling-Machine

1,263,000 252,600 1,010,400 202,080 808,320 161,664 646,656 129,331 517,325

Reverse Osmosis Water purification Plant

1,500,000 300,000 1,200,000 240,000 960,000 192,000 768,000 153,600 614,400

Distribution Trucks 16,000,000 1,600,000 6,400,000 1,280,000 5,120,000 1,024,000 4,096,000 819,200 3,276,800

Year 5

Book Value

Year 6

Book Value

Year 7

Book Value

Year 8

Book Value

Year 9

Book Value

Year 10

Book Value

206,438 825,754 165,151 660,603 132,121 528,482 105,696 422,786 84,557 338,229 67,646 270,583

15,155 60,621 12,124 48,497 9,699 38,797 7,759 31,038 6,208 24,830 4,966 19,864

9,830 39,322 7,864 31,457 6,291 25,166 5,033 20,133 4,027 16,106 3,221 12,885

45,711 182,845 36,569 146,276 29,255 117,021 23,404 93,617 18,723 74,893 14,979 59,915

86,753 347,013 69,403 277,610 55,522 222,088 44,418 177,671 35,534 142,137 28,427 113,709

66,355 265,421 53,084 212,337 42,467 169,869 33,974 135,895 27,179 108,716 21,743 86,973

129,843 519,373 103,875 415,498 83,100 332,399 66,480 265,919 53,184 212,735 42,547 170,188

103,465 413,860 82,772 331,088 66,218 264,870 52,974 211,896 42,379 169,517 33,903 135,614

122,880 491,520 98,304 393,216 78,643 314,573 62,915 251,658 50,332 201,327 40,265 161,061

655,360 2,621,440 524,288 2,097,152 419,430 1,677,722 335,544 1,342,177 268,435 1,073,742 214,748 858,993

The depreciation has been calculated by Diminishing Balance Method keeping 10% as the rate.

Schedule for Depreciation (Land and Building)

Machinery & Equipment

Total Cost

Year 1Book Value

Year 2Book Value

Year 3Book Value

Year 4Book Value

Bottle Washing and Storage Plant (50,000 bottles)

6,000,000 600,000 5,400,000 600,000 4,800,000 600,000 4,200,000 600,000 3,600,000

Actual Manufacturing Plant including Quality Control

24,000,000 2,400,000 21,600,000 2,400,000 19,200,000 2,400,000 16,800,000 2,400,00014,400,00

0

Finished good storage room 900,000 90,000 810,000 90,000 720,000 90,000 630,000 90,000 540,000

Management office 1,800,000 180,000 1,620,000 180,000 1,440,000 180,000 1,260,000 180,000 1,080,000

Distribution Network 6,000,000 600,000 5,400,000 600,000 4,800,000 600,000 4,200,000 600,000 3,600,000

Water Filtration Plant 9,000,000 900,000 8,100,000 900,000 7,200,000 900,000 6,300,000 900,000 5,400,000

Year 5Book Value

Year 6

Book Value

Year 7

Book Value

Year 8

Book Value

Year 9

Book Value

Year 10

Book Value

600,000 3,000,000 600,000 2,400,000 600,000 1,800,000 600,000 1,200,000 600,000 600,000 600,000 0

2,400,000 12,000,000 2,400,000 9,600,000 2,400,000 7,200,000 2,400,000 4,800,000 2,400,000 2,400,000 2,400,000 0

90,000 450,000 90,000 360,000 90,000 270,000 90,000 180,000 90,000 90,000 90,000 0

180,000 900,000 180,000 720,000 180,000 540,000 180,000 360,000 180,000 180,000 180,000 0

600,000 3,000,000 600,000 2,400,000 600,000 1,800,000 600,000 1,200,000 600,000 600,000 600,000 0

900,000 4,500,000 900,000 3,600,000 900,000 2,700,000 900,000 1,800,000 900,000 900,000 900,000 0

The depreciation has been calculated by Straight Line Method keeping 10% as the rate.

Schedule for Depreciation (Office Equipment)

Equipment COST Year 1Book Value

Year 2Book Value

Year 3Book Value

Year 4Book Value

Year 5Book Value

Table & Chair for CEO 9,600 1,920 7,680 1,920 5,760 1,920 3,840 1,920 1,920 1,920 0

Table and chair for Manager/Department

Head48,000 9,600 38,400 9,600 28,800 9,600 19,200 9,600 9,600 9,600 0

Table and chair for Supervisor/Officers

80,000 16,000 64,000 16,000 48,000 16,000 32,000 16,000 16,000 16,000 0

Table and chair for Other Staff Members

44,000 8,800 35,200 8,800 26,400 8,800 17,600 8,800 8,800 8,800 0

Other Staff Chairs 6,000 1,200 4,800 1,200 3,600 1,200 2,400 1,200 1,200 1,200 0

Personal Computer 175,000 35,000 140,000 35,000 105,000 35,000 70,000 35,000 35,000 35,000 0

Laser Printer 105,000 21,000 84,000 21,000 63,000 21,000 42,000 21,000 21,000 21,000 0

Fax Machine 80,000 16,000 64,000 16,000 48,000 16,000 32,000 16,000 16,000 16,000 0

UPS 45,000 9,000 36,000 9,000 27,000 9,000 18,000 9,000 9,000 9,000 0

Air Conditioner 75,000 15,000 60,000 15,000 45,000 15,000 30,000 15,000 15,000 15,000 0

The depreciation has been calculated by Straight Line Method keeping 20% as the rate.

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Fa Report Test (28fb