Team 2_VFood_Expenditure Plan - 15.12

8/3/2019 Team 2_VFood_Expenditure Plan - 15.12

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GE401- Innovative Product Design & Development I

Expenditure Plan

12/15/2011

Team 2

Seydi Afin nlEmirhan Akdemir

Cansu AcarMelodi TrkiliOnur entre

Engin yidoan

Version: 1.0


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Introduction

The expenditure report basically defines the key expenses of the company. As the expected

expenses are different for each year, we have examined the following three years. In order to

define expenditures in a more structured way, we have collected all the parts in three main

titles including ordered vending machine, total marketing expense and total operational

expense. Since we are producing our vending machines according to orders, the cost of one

ordered product is the cost of all parts which are basically Arduino Uno, 6xStepper Motors,

Internal Metallic Components, Keypad, LCD, Steel Case, Cooling System and Packaging. As

we cannot obtain economies of scale due to the limited sales in the first years, the prices of

each component will remain same. According to the marketing plan that is already written,

the marketing expenditures are brochures, banner ads, exhibition and brochures. Even though

we use the same strategy each year, the frequency differs. The third one is the operations total

expense which consists the rental costs, salaries and other expenses related to operations.


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Expenditure Results of Year 1

In the first year, we need to keep the marketing and operational expenses as minimum as possible. We

will work with home office system for the first year. We are going to send 1000 brochures, to have

banner ads 5 times and to be sponsor for 1 event.

We assume that we will sell 40 vending machines in the first year so our expense will be 40 times the

cost of whole components.

17%4%

79%

Expenditure Results Year 1

Ordered Vending Machine Total Marketing Expense Total Operations Expense


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EXPENSECOST NUMBER TOTAL COST

Product Equipments

Arduino Uno 60 TL 1 60 TL

6 x Stepper Motors 60 TL 6 360 TLInternal Metallic Components 150 TL 1 150 TL

Bill Validator 520 TL 1 520 TL

Electrical Components (Motor drivers, sensors) 60 TL 1 60 TL

Keypad 10 TL 1 10 TL

LCD 10 TL 1 10 TL

Steel Case 90 TL 1 90 TL

Cooling System 180 TL 1 180 TL

Packaging 100 TL 1 100 TL

Transportation 200 TL 1 200 TL

Per Vending Machine 1.740 TL

Ordered Vending Machine 40 69.600 TL

Marketing

Brochures 3 TL 1000 3.000 TL

Banner Ads 400 TL 5 2.000 TL

Exhibition 1.000 TL 3 3.000 TL

Sponsorship 7.000 TL 1 7.000 TL

Total Marketing Expense 15.000 TL

Operations

Rental of the Factory 4.000 TL 12 48.000 TL

Office Rent 0 TL 12 0 TL

Utilities 2.000 TL 12 24.000 TL

Salary of Managers 2.000 TL 72 144.000 TL

Salary of Employees 1.000 TL 24 24.000 TL

Salary of Labors 1.000 TL 24 24.000 TL

Rental of the Sales Car 1.000 TL 12 12.000 TL

SG&A 2.000 TL 12 24.000 TLOther Expenses 1.600 TL 12 19.200 TL

Total Operations Expense 319.200 TL

TOTAL EXPENSES 403.800 TL


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Product EquipmentsArduino Uno 60 TL 1 60 TL

6 x Stepper Motors 60 TL 6 360 TL

Internal Metallic Components 150 TL 1 150 TL




LCD 10 TL 1 10 TL



Packaging 100 TL 1 100 TLTransportation 200 TL 1 200 TL



Marketing




Sponsorship 10.000 TL 2 20.000 TLTotal Marketing Expense 31.000 TL

Operations


Office Rent 1.000 TL 12 12.000 TL






SG&A 2.000 TL 12 24.000 TL

Other Expenses 1.600 TL 12 19.200 TL




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Expenditure Results of Year 3

In the third year, we need to keep the marketing and operational expenses low again to make

preparation for the following year in which we will increase our sales force and marketing power.

We assume that we will sell 60 vending machines in the first year so our expense will be 60 times the

cost of whole components.

Since the total marketing and operations costs are increasing while the ordered vending machine cost

remains same, the percentage of the ordered vending machine cost decreases.

20%

13%

67%

Expenditure Results Year 3

Ordered Vending Machine Total Marketing Expense Total Operations Expense


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Product Equipments

Arduino Uno 60 TL 1 60 TL

6 x Stepper Motors 60 TL 6 360 TLInternal Metallic Components 150 TL 1 150 TL




LCD 10 TL 1 10 TL



Packaging 100 TL 1 100 TL

Transportation 200 TL 1 200 TL



Marketing




Sponsorship 10.000 TL 5 50.000 TL

Total Marketing Expense 71.000 TL

Operations


Office Rent 1.000 TL 12 12.000 TL






SG&A 2.000 TL 12 24.000 TLOther Expenses 3.200 TL 12 38.400 TL



Documents

Team 2_VFood_Expenditure Plan - 15.12