sjsu sportswear 2

Cost and Revenue/Net Income Estimation

Tip: Check sample reports under File/GroupProject for revenue impact, or sample cost estimation under File/SampleHomework/CostRevenueEstimation. Use the excel sheet or word to lay out the cost/revenue details.

Requirements: You need to calculate:

Year 1

1) The cost (bottom-up approach)

Fixed cost by direct cost/indirect cost,

Fixed cost (mainly direct labor cost and direct the material cost that is used for your product/service delivery)

Indirect cost (mainly utilities, rental cost, and overhead cost)

2) Estimate your revenue (gross) based on your daily sales income

3) Get the net income by deducting the total cost

Years 2 & 3

4) For the second year and third year, you add the cost by 10-20 % increase and sales by 20-30% increase

You need to do a 3-year prediction, one year per column. Keep it concise using a table format.

The recorded tutorial:

This is a sample that I selected from the related HW sample folder. I picked it because this coffee store business is very easy for you to understand. You may apply the way how this project group did with their coffee shop project to your project. No matter what business (product or services) you will do, the method is the same.

Listen to my tutorial at this link (copy/paste the link to the browser to play it if the direct click doesn’t work):…

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