Profitability of Proposed Project

Assumptions

full production
no facility related charges (i.e. space/utilities already available in an existing facility)
no additional selling, general, and administrative charges (existing staff will provide necessary support)

Expected annual volume (knowing the size of the target market)

Think in terms of the steps/stages involved in the manufacturing process

Determine the cost of the product

materials

Some websites that provide pricing for composites related raw materials and process materials:

www.fibreglast.com
www.shopmaninc.com
www.expresscomposites.com

These distributors sell directly to consumers in small quantities. As such, be aware the prices are substantially inflated in comparison to the prices for quantities typically purchased by industry customers.

purchased parts (McMaster-Carr)

labor

wages

employee taxes, unemployment insurance, and worker compensation insurance

Federal

Section 9 - Social Security and Medicare Taxes
Section 14 - Federal Unemployment (FUTA) Tax

State

worker compensation insurance
(see link at www.nasi.org, pg 44 of document)

other - health insurance, retirement, other benefits

Tooling (depreciation expense, assume straight-line depreciation)

Equipment (depreciation expense, assume straight-line depreciation)

There are many websites that sell used composites/plastics processing equipment. Most require an inquiry before disclosing pricing.

Expected cost, price and profit (per unit)