Return on Investment
You need the following building and equipment in order to produce 60,000 gallons of finished product per month. This is based on an average work day using 4 semi-skilled employees.
1. Building size: Approximately 5,000 sq. ft. (or more)
2. Equipment (supplied): 2 mixing machines.
3. Equipment installation: Minimal labor required with an average 3 day setup time.
4. Utilities & water: Local electricity or equivalent, warm clean water.
5. Equipment (not supplied): Fork lift and assorted light hand equipment.
6. Initial inventory (raw materials): Minimum raw material for 10,800 gallons.
7. Additional inventory: Containers & packaging equipment, supplied according to individual needs.
8. Sales materials: Supplied as needed
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Total gallons produced
60,000
150,000
275,000
Gross product sales*
1,260,000
3,150,000
5,775,000
Cost of goods sold
580,000
1,387,000
2,462,500
Gross profit
660,000
1,763,000
3,312,500
GS&A**
55,000
100,000
150,000
Net profit
625,000
1,663,000
3,163,000
Investment (example)
300,000
300,000
300,000
Return on Investment
208%
554%
1054%
* Sales and profit projections are based on actual experience but will vary according to region and market conditions. They may be less or greater in any given situation. Manufacturers maintaining factory outlets will enjoy higher returns.
** General sales & administrative cost
| Total Gallons Produced | 60,000 | 150,000 | 275,000 |
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| Gross Product Sales* | 1,260,000 |
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5,775,000 |
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| Cost of Goods Sold | 580,000 | 1,387,000 | 2,462,500 | 3,887,500 | 5,307,500 | 7,618,750 |
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52,8 | 54.8 | 57 | 58 | 59.7 |
* Sales and profit projections are based on actual experience but will vary according to region and market conditions. They may be less or greater in any given situation. Manufacturers maintaining factory outlets will enjoy higher returns.
** General sales & administrative cost
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