|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
China |
|
9.600
|
|
| |
|
|
1200
|
| |
North American Free Trade Agreement (NAFTA) |
21.457
|
|
| |
|
278
|
| |
Rest of Developed World |
44.120
|
|
| |
|
2.486
|
| |
|
|
|
|
| |
|
|
|
|
|
|
| |
TABLE 2 - MARKETING COSTS |
|
|
|
| |
Information on competitors' activities |
MOP 75 000
|
|
|
| |
Market share information |
MOP 50 000
|
|
|
| |
|
|
|
|
|
| |
TABLE 3 - AGENTS (CHINA), DISTRIBUTORS (NAFTA) & INTERNET DISTRIBUTOR COSTS |
|
|
|
| |
Minimum support cost, per agent/distributor, per quarter |
MOP 50 000
|
|
|
| |
Cost of setting up an agent/distributor |
MOP 75 000
|
|
|
| |
Cost of terminating an agent/distributor |
MOP 50 000
|
|
|
| |
|
|
|
|
|
|
|
|
| |
% of value |
3%
|
|
|
| |
First time joining fee to Internet Service Provider |
MOP 75 000
|
|
|
| |
Quarterly cost per Internet Port |
MOP 10 000
|
|
|
| |
Cost of closing down an internet operation |
MOP 50 000
|
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
TABLE 5 - MANUFACTURING PARAMETERS |
|
|
|
| |
|
|
|
|
|
|
|
| |
|
Product 1
|
|
Product 2
|
|
Product 3
|
|
| |
Minimum machining time per unit |
60 min.
|
|
75 min.
|
|
120 min.
|
| |
Minimum assembly time per unit |
100 min.
|
|
150 min.
|
|
300 min.
|
| |
Raw material content per unit |
1 unit
|
|
2 units
|
|
3 units
|
| |
|
|
|
|
|
|
|
 |
| |
TABLE 6 - MAINTENANCE COSTS |
|
|
|
| |
Maintenance cost per machine, per hour |
MOP 850
|
|
|
| |
Cost per hour of emergency maintenance (not contracted for) |
MOP 1 750
|
|
|
| |
|
|
|
|
|
| |
TABLE 7 - MAXIMUM HOURS AVAILABLE PER MACHINE (PER QUARTER, RELATIVE TO SHIFT LEVEL WORKED) |
|
|
|
| |
|
|
|
|
|
|
| |
Shift level
|
|
Maximum hours per quarter that each machine can work,
accumulating hours to each successive level of shift
|
|
Unskilled workers needed for each machine
|
|
| |
Single (1)
|
588 hours
|
4
|
| |
Double (2)
|
1 092 hours
|
8
|
| |
Treble (3)
|
1 638 hours
|
12
|
| |
|
|
|
|
|
|
|
| |
TABLE 8 - SCRAP VALUES FOR REJECTED PRODUCTS |
|
|
|
| |
|
|
|
|
|
|
|
| |
|
Product 1
|
|
Product 2
|
|
Product 3
|
|
| |
Scrap value per product unit |
MOP 400
|
MOP 800
|
MOP 1 200
|
| |
|
|
|
|
|
|
|
|
| |
TABLE 9 - CHARGE FOR GUARANTEE REPAIRS & SERVICING |
|
|
|
| |
|
|
|
|
|
|
|
| |
|
Product 1
|
|
Product 2
|
|
Product 3
|
|
| |
Retail servicing cost, per unit |
MOP 600
|
MOP 1 500
|
MOP 2 500
|
| |
Note that repairs carried out as a result of a product recall are charged at 75% of normal charge |
| |
|
|
|
|
|
|
|
|
| |
TABLE 10 - PRODUCTION COSTS |
|
|
|
| |
Cost of supervision per shift |
MOP 125 000
|
|
|
| |
Production overheads, per machine |
MOP 35 000
|
|
|
| |
Running cost per machine hour |
MOP 80
|
|
|
| |
Production planning cost per unit requested |
MOP 10
|
|
|
| |
Cost of quality control department |
MOP 80 000
|
|
|
| |
|
|
|
|
|
| |
TABLE 11 - CONTAINER CAPACITY |
|
|
|
| |
|
|
|
|
|
| |
|
|
Product 1 |
|
Product 2 |
|
Product 3 |
|
| |
Container capacity in terms of products |
500
|
|
250
|
|
125
|
| |
Note: Mixed loads can be carried: eg, 1 unit Prod. 3 = 2 units Prod. 2 or 4 units Prod. 1 |
| |
|
|
|
|
|
|
|
|
|
| |
TABLE 12 - TRANSPORTATION COSTS |
|
|
|
| |
Daily all-in hire cost of container |
MOP 6500
|
|
|
| |
Maximun vehicle distance allowed each day |
400 KM
|
|
|
| |
Distance to Nafta shipping port |
250 KM
|
|
|
| |
Cost of container hire |
MOP 80 000
|
|
|
| |
Distance to Internet Distribution Agent |
150 KM
|
|
|
| |
|
|
|
|
|
| |
TABLE 13 - WAREHOUSING & PURCHASING |
|
|
|
| |
Available raw material storage at factory (units) |
2 000
|
|
|
| |
Quarterly cost of factory warehouse and administration |
MOP 125 000
|
|
|
| |
Cost of external storage per raw material unit |
MOP 25
|
|
|
| |
Cost of storage per product unit at China Agents and Internet Distributors |
MOP 35
|
|
|
| |
Cost of storage per product at Nafta Distributor |
USD$ 4
|
|
|
| |
Premium charge for unplanned material purchase |
+10% on spot price |
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
TABLE 14 - METHOD OF CALCULATING AVERAGE QUARTERLY STOCK HOLDINGS & INTEREST |
|
|
|
| |
0.5 x (opening value + closing value) |
| |
|
|
|
| |
TABLE 15 - HUMAN RESOURCE DEPARTMENT COSTS |
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
Recruitment |
|
Compensation for Dismissal |
|
Initial Training |
|
| |
Skilled assembly workers |
MOP 20 000
|
|
MOP 50 000
|
|
MOP 85 000
|
| |
Unskilled machinists |
MOP 10 000
|
|
MOP 20 000
|
|
---
|
| |
|
|
|
|
|
|
|
| |
TABLE 16 - MAXIMUM HOURS EACH PRODUCTION WORKER CAN WORK AND PAY PREMIUMS |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Shift Level |
|
Hours Per Worker
at Basic Rate |
|
Hours Per Worker
at Saturday Rate
(basic pay + 50%) |
|
Hours Per Worker
at Sunday Rate
(basic pay + 100% ) |
|
Machinists
Shift Premium |
|
| |
Single (1)
|
|
420
|
|
+ 84
|
|
+84
|
|
0
|
| |
Double (2)
|
|
420
|
|
+ 42
|
|
+84
|
|
1/3
|
| |
Treble (3)
|
|
420
|
|
+ 42
|
|
+84
|
|
2/3
|
| |
|
|
|
|
|
|
|
|
|
| |
TABLE 17 - MINIMUM HOURS & SALARIES |
|
|
|
| |
Unskilled machinists' minimum paid hours per quarter |
350 hours
|
|
|
| |
Skilled assembly workers' strike hours per week |
49 hours
|
|
|
| |
Skilled assembly workers' minimum hours per quarter |
0
|
|
|
| |
Skilled assembly workers' minimum hourly rate of pay |
MOP 40
|
|
|
| |
Minimum management budget per quarter |
MOP 300 000
|
|
|
| |
Ratio of unskilled machinists' rate of pay to skilled rate |
65%
|
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
TABLE 18 - COST OF MACHINES |
|
|
|
| |
Cost per machine (total) |
MOP 3 500 000
|
|
|
| |
Payable at time of order |
MOP 1 750 000
|
|
|
| |
Payable on installation |
MOP 1 750 000
|
|
|
| |
Machine rate of depreciation per quarter |
2,50%
|
|
|
| |
Decomissioning Charge |
MOP 700 000
|
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
TABLE 19 - METHOD OF COMPUTATIONS |
|
|
|
| |
Financial Limits Overdraft: |
50% of value of (property + raw material stock + product stock) |
| |
|
plus |
90% of debtors |
| |
|
less |
100% tax due |
| |
|
less |
100% of creditors |
| |
Note: All of these values are taken from last quarter's Balance Sheet |
| |
Borrowing Power: |
|
0.5 x (share price at the end of last quarter x number of shares) |
| |
|
less |
100% of (term loans already in place + bank overdraft limit as calculated above) |
| |
Credit-worthiness for buying machines: |
Borrowing Power + Cash + Investments (all from last quarter's Balance Sheet) |
| |
|
less |
50% of the value of each machine due to be installed next quarter |
| |
Note: If any of these limits work out to be less than 0, the limit will be set to 0. |
| |
|
|
|
|
|
|
| |
TABLE 20 - FINANCIAL PARAMETERS |
|
|
|
| |
Tax rate per annum (assessed in the fourth quarter of the year, and paid in the second quarter) |
30%
|
|
|
| |
Fixed overheads per quarter |
MOP 300 000
|
|
|
| |
Variable overhead rate per quarter |
0.30%
|
|
|
| |
Credit control cost per unit sold in China and Nafta |
MOP 10
|
|
|
| |
Credit card rate on internet sales |
MOP 10
|
|
|
| |
Interest rates on: |
|
|
|
|
| |
Investments |
Annual China base rate announced last quarter |
| |
Overdraft |
Annual China base rate announced last quarter plus 4% |
| |
Unsecured loans |
Annual China base rate announced last quarter plus 10% |
| |
Term loans |
Fixed annual rate of 12% |
| |
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
TABLE 21 - PRODUCT STOCK & RAW MATERIAL STOCK VALUATION |
|
|
|
| |
Product Stock: |
|
|
|
| |
110% of the total cost of all products, with each product calculated as: |
|
|
| |
|
|
|
The raw material content valued at six-month price quoted last quarter |
| |
|
|
plus |
The basic skilled wage rate times the assembly-time for the product |
| |
|
|
plus |
(The machining time for the product x 4) x (65% of the basic wage rate) |
| |
|
|
|
x (the % shift premium) |
|
|
| |
Raw Material Stock: |
|
|
|
| |
90% of the lowest of the Spot, 3-month or 6-month quoted last quarter, times the number of units in stock or due to be delivered |
| |
|
|
|
|
|
| |
TABLE 22 - INSURANCE OPTIONS |
|
|
|
| |
|
|
|
|
|
|
|
|
| |
Insurance Plan Number |
|
Insurance Excess |
|
Insurance Premiun |
| |
0
|
|
100%
|
|
no insurance
|
| |
1
|
|
0,10%
|
|
0,60%
|
| |
2
|
|
0,20%
|
|
0,35%
|
| |
3
|
|
0,30%
|
|
0,20%
|
| |
4
|
|
0,40%
|
|
0,10%
|
| |
Note:The monetary value of the primary risk is calculated as:
the quoted percentage of Property plus Machines plus Raw Material Stock plus Product Stock taken from last quarter's Balance Sheet |
| |
|
|
|
|
|
| |
TABLE 23 - TARGET PAYMENT PERIODS FOR DEBTORS |
|
|
|
| |
Internet |
0 days (credit card)
|
|
|
| |
China agents |
60 days
|
|
|
| |
NAFTA distributors |
90 days
|
|
|
| |
|
|
|
|
|
| |
TABLE 24 - TIMING OF PAYMENTS TO CREDITORS |
|
|
|
| |
External Cost Items
(Internal and labor costs omitted)
|
If goods are delivered or services are provided next quarter,
the charged amount will be paid:
|
| |
|
Next Quarter
|
|
Quarter after Next
|
| |
Advertising |
|
|
100 %
|
| |
Guarantee servicing |
|
|
100 %
|
| |
Internet Service Provider |
100%
|
|
|
|
| |
Payments to agents and distributors |
100%
|
|
|
|
| |
Transportation costs |
|
|
100%
|
| |
Warehousing costs |
|
|
100%
|
| |
Personnel costs |
100%
|
|
|
|
| |
Research & Development |
100%
|
|
|
|
| |
Maintenance |
|
|
100%
|
| |
Business intelligence |
|
|
100%
|
| |
Web-site development |
|
|
100%
|
| |
Other miscelaneous costs |
100%
|
|
|
|
| |
Raw materials (Note 1) |
50%
|
|
50%
|
| |
Machines (Note 2) |
50%
|
|
50%
|
| |
Interest |
100%
|
|
|
|
| |
Insurance |
100%
|
|
|
|
| |
Note 1: All materials ordered next quarter (regardless of date of future delivery) will be paid 50% next quarter and 50% in the quarter after next. The second payment will not be affected by changes in the exchange rate in the meanwhile.
Note 2: Machines will be ordered next quarter and a 50% deposit paid; and installed in the quarter after next at which time the second 50% of the payment will be made. |
| |
|
|
|
|
|
|
| |
TABLE 25 - WEB-SITE CAPACITY |
|
|
|
| |
Demand on your web-site will vary considerably from hour to hour across the day. If you are not able to givequick and efficient service to visitors at peak times, your marketing image can decline quite sharply. However, it is difficult to assess the capacity of your web-site which depends on the number of ports linking you to your ISP. The following table gives a guide to the link between ports and service. |
| |
Number of Ports in parallel |
|
1
|
2
|
5
|
10
|
20
|
50
|
|
12
|
24
|
60
|
120
|
240
|
600
|
|
2
|
7
|
31
|
81
|
190
|
537
|
|
| |
Maximum theoretical capacity number of visits per hour |
| |
Practical working capacity number of visits per hour |
|
