Office elegance is a privately-owned specialty manufacturer of high-end office furniture for computer users who care about
Question:
“Office elegance” is a privately-owned specialty manufacturer of high-end office furniture for computer users who care about elegant office space. Their customers are in all levels of business that can afford very high-quality office furniture, plus a growing portion of high-end home offices. It offers a bundle of very high-quality office furniture designed to effectively incorporate computer machinery into the executive office or home office. The key to the line is an ergonomically effective desk that still looks like an executive desk, looks very good in a high-end home office, but is intended to accommodate the personal computer.
The two critical elements of ergonomics — keyboard height and angle and monitor height and angle — are completely adjustable. Cable runs and shelving add to the utility of the executive computer, without sacrificing elegance. It also makes complimentary pieces to fill out the office suite, including file cabinets, printer stands, and bookcases. The competition, by the way, is not niche, they compete against generalized furniture manufacturers, cheaper computer-related furniture, and mainstream merchandise.
Products | Cost (BDT)(Per unit cost) |
Full ergonomic office bundle (Executive desk+chair+ File cabinets+ printer stand + Bookcase) | 1,40,000 |
Assumptions
· Establish a brand with minimal effort in marketing.
· Office elegance plans to keep their overhead cost only limited to rent payment for the shop, which is TK 40,000 per month.
· They plan to add a 40% mark-up to remain relevant with the industry.
· “Office Elegance” has the following targets in upcoming months
Target (Orders) | 1st Quarter | 2nd Quarter |
Orders | 75 | 87 |
· Operation costs must be kept within 30%-45% of the revenue in the first year.
· Inventory cost must be kept within 15% of the sales.
· The startup wants to achieve its breakeven point by the second quarter.
Make a list of costs (Fixed and variables) (along with amount) that would result from the operation for two quarters. Give notes about each cost explaining the amount and the reason behind the cost. Keep it short [ You can make some assumptions and obtain information from online]. Determine the sales price.
Expert Answer:
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