Section 905 (Group Plushiez)

PLUSHIEZ

“Your Daily Dose of

Cuteness!”

Name Plushiez
Ownership (Partnership) Nurhani binti Abdul Muis 143833
Khairunnisa binti Rosli 141424
Norshahira Nadia binti Napi 143050
Sakinah binti Kamal Fauzi 144347
Nur Atiqah binti Sa'aban 143269
Date of formation 4th April 2015
Phone number +603 89251 8356
Fax number +603 89251 6473
Email Plushiez@gmail.com
Address Seksyen 9, Central Bangi ,43650 , Bandar Baru
Bangi , Selangor Darul Ehsan

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Table of Content

No. Topic Page

1 Introduction 3
2 About Plushiez 4
3 Product Produced and the Materials Used 7
4 CVP analysis 10
5 Budget 15

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1. Introduction

Our business is in a form of partnership which consist of five members. Plushiez was
formed in 1 April 2015. Our address is in Seksyen 9, Central Bangi, 43650 Bandar Baru
Bangi, Selangor Darul Ehsan. We choose Central Bangi to run our business because the place
is strategic for attracting young shoppers to buy our product and the rental fees is reasonable.

Our product is mainly about teenagers' accessories. Plushiez has many elegant design
with its own special function as brooch and keychain with reasonable price and GST-free
compared to others accessories company. The reason we open this company on account of
the demand of reasonable-priced accessories such as hair clip and brooch are increasing in
urban areas.

There are many risks that we have to face during the operation of our business. First,
our weaknesses are lack in management since we are young entreprenuer and have no
experience in managing any business before. Second, we have many threats such as
competing with well known brand of handmade accessories and surviving though economic
recession.

However, we also have our own strength and opportunities. Our strength is we are
good in marketing strategies as we know what our customer demands are and some strategic
places to sell our product. Furthermore, our opportunity is the demand of fashionable
accessories are always at the peak due to the trend of the teenagers that love cute things
attached to their bags and clothes.

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2. About Plushiez.
Capital Obtained
Since we opened our business as partnerships, we will contribute RM 8,000 each as our
capital for opening business. Hence,we have total of RM40,000 in order start up our business. The
capital is used for buying new equipment, raw materials, overhead expenses, labour and
advertisement.

Besides, other sources of capital that we attained is through partnership loan which is
RM 5,000 for each partner. This capital is used for contingency plan. Moreover, to continue our
business on the long run, we decide to use our profit as our capital.

Sketch / drawing
This is a sketch for keychain, brooch and hairclip.

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Planning of the material used

Direct Material that is Brooch Pouch Keychain Hair clip
required
1. Thread ✔ ✔ ✔ ✔
2. Glue ✔ ✔ ✔ ✔
3. Felt ✔ ✔ ✔ ✔
4. Ribbon ✔
5. Beads ✔
6. Clip ✔
7. Pin ✔
8. Ring ✔
9.Button ✔ ✔
10. Diamond ✔

Master Production Schedule

Brooch
Direct Material April May June
that is required
1. Thread 3 4 5
2. Glue 2 2 3
3. Felt 4.5m 5.8m 8.4m
4. Pin 225 290 420
5. Diamond 225 290 420

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Pouch
Direct Material April May June
that is required
1. Thread 10 12 14
2. Glue 1 1 1
3. Felt 13.75m 17.6m 27.5m
4. Ribbon 31.25m 40m 62.5m
5.Button 125 160 250

Keychain
Direct Material April May June
that is required
1. Thread 5 6 7
2. Glue 2 3 3
3. Felt 3.4m 5.2m 7.4m
4. Ring 170 260 370
5.Button 340 520 740

Hairclip
Direct Material April May June
that is required
1. Thread 3 4 5
2. Glue 2 3 3
3. Felt 0.45m 0.54m 0.78m
4. Beads 450 540 780
5. Clip 150 180 260

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3. PRODUCT PRODUCED AND THE MATERIALS USED

Keychain and Hairclip

Pouch and Brooch

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4.1 CVP ANALYSIS

VARIABLE MANUFAVTURING FIXED MANUFACTURIN

OVERHEAD OVERHEAD COST

Indirect materials Insurance – RM100

 Glue – RM10 Rental – RM 1300
 Needle – RM 10 Depreciation – Machine – RM 28
 Thread – RM 25 Laptop – RM 45.45
 Machine oil – RM 9 Car – RM 400
 Paper – RM 20 Printer – RM 13.68
Fuels – RM250
Utilities WiFi rate – RM 80
 Electricity – RM 85 Miscellaneous – RM 40
 Water – RM 23 Total = RM 2257.13
Total = RM 154.10

VMOH per unit = RM0.23 FMOH per unit = RM 3.37

DIRECT LABOR
RM 5/hour

Keychain : 5 pieces per hour Hair clip : 10 pieces per hour

DL per unit = RM 1 DL per unit = RM 0.50

Brooch : 10 pieces per hour Pouch : 3 pieces per hour

DL per unit = RM 0.50 DL per unit = RM 1.67

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DIRECT MATERIALS

Keychain Hair clip

Felt = RM 0.06 Felt = RM 0.06
Button = RM 0.10 Clip = RM 0.20
Ring = RM 0.17 Beads = RM 0.50
Total = RM 0.33 Total = RM 0.76

Pouch
Brooch Felt (big) = RM 0.13
Felt = RM 0.06 Felt (small) = RM 0.06
Pin = RM 0.12 Ribbon = RM 1.20
Diamond = RM 0.17 Button = RM 0.10
Total = RM 0.35 Total = RM 1.49

COST PRICE PER UNIT

Keychain Hair clip

= DM + DL + VMOH + FMOH = DM + DL + VMOH + FMOH
= 0.33 + 1 + 0.23 + 3.37 = 0.76 + 0.50 + 0.23 + 3.37
= RM 5.04 = RM 4.97

Brooch Pouch
= DM + DL + VMOH + FMOH = DM + DL + VMOH + FMOH
= 0.35 + 0.50 + 0.23 + 3.37 = 1.49 + 1.67 + 0.23 + 3.37
= RM 4.56 = RM 6.87

SELLING PRICE

= Cost price + (mark up % x cost price)

= Round off to the nearest ringgit
Mark up = 100%

Keychain Hair clip

= RM 5.04 + (100% x RM 5.04) = RM 4.97 + (100% x RM 4.97)
= RM 10.08 = RM 9.94
= RM 10.00 = RM 10.00
Brooch Pouch
= RM 4.56 + (100% x RM 4.56) = RM 6.87 + (100% x RM 6.87)
= RM 9.12 = RM 13.74
= RM 9.00 = RM 14.00

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CONTRIBUTION MARGIN

= Selling price – variable cost per unit

Keychain Hair clip

= RM 10.00 – RM 0.23 = RM 10.00 – RM 0.23
= RM 9.77 = RM 9.77

Brooch Pouch
= RM 9.00 – RM 0.23 = RM 14 – RM 0.23
= RM 8.77 = RM 13.77

4.2 BREAKEVEN ANALYSIS

KEYCHAIN

BEq = 2257.13
9.77
= 231 units
BEs = 231 x RM 10.00
= RM 2310.00

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BROOCH
BEq = 2257.13
8.77

= 257 units
BEs = 257 x RM 9.00
= RM 2313.00

HAIRCLIP
BEq = 2257.13
9.77
= 231 units
BEs = 231 x RM 10.00
= RM 2310.00

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POUCH

BEq = 2257.13

13.77

= 164 units
BEs = 164 x RM 14.00
= RM 2296.00

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5.0 BUDGET

Sales Budget

APRIL
Product Units to be sold Price Total Revenue
Keychain 120 RM 9.90 RM 1188
Brooch 150 RM 8.90 RM 1335
Hair clip 100 RM 9.70 RM 970
Pouch 90 RM 13.50 RM 1215
TOTAL RM 4708

MAY
Product Units to be sold Price Total Revenue
Keychain 250 RM 9.90 RM 2475
Brooch 280 RM 8.90 RM 2492
Hair clip 170 RM 9.70 RM 1649
Pouch 150 RM 13.50 RM 2025
TOTAL RM 8641

JUNE
Product Units to be sold Price Total Revenue
Keychain 360 RM 9.90 RM 3564
Brooch 410 RM 8.90 RM 3649
Hair clip 250 RM 9.70 RM 2425
Pouch 240 RM 13.50 RM 3240
TOTAL RM 12878

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Production Budget

KEYCHAIN
April May June
Units to be sold 120 250 360
Planned Ending Inventory 50 60 70
170 310 430
Beginning Inventory (0) (50) (60)
Units to be produced 170 260 370

BROOCH
April May June
Units to be sold 150 280 410
Planned Ending Inventory 75 85 95
225 365 505
Beginning Inventory (0) (75) (85)
Units to be produced 225 290 420

HAIR CLIP
April May June
Units to be sold 100 170 250
Planned Ending Inventory 50 60 70
150 230 320
Beginning Inventory (0) (50) (60)
Units to be produced 150 180 260

POUCH
April May June
Units to be sold 90 150 240
Planned Ending Inventory 35 45 55
125 195 295
Beginning Inventory (0) (35) (45)
Units to be produced 125 160 250

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 Section 905 (Group Plushiez)

Direct Materials Usage Budget

KEYCHAIN (APRIL)
Units Price RM
Felt 3.4m RM 6.00 RM 20.40
Ring 170 RM 0.17 RM 28.90
Button 340 RM 0.10 RM 34.00
TOTAL RM 83.30

KEYCHAIN (MAY)
Units Price RM
Felt 5.2m RM 6.00 RM 31.20
Ring 260 RM 0.17 RM 44.20
Button 520 RM 0.10 RM 52.00
TOTAL RM 127.40

KEYCHAIN (JUNE)
Units Price RM
Felt 7.4m RM 6.00 RM 44.40
Ring 370 RM 0.17 RM 62.90
Button 740 RM 0.10 RM 74.00
TOTAL RM 181.30

BROOCH (APRIL)
Units Price RM
Felt 4.5m RM 6.00 RM 27.00
Pin 225 RM 0.12 RM 27.00
Diamond 225 RM 0.17 RM 38.25
TOTAL RM 92.25

BROOCH (MAY)
Units Price RM
Felt 5.8m RM 6.00 RM 34.80

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Pin 290 RM 0.12 RM 34.80

Diamond 290 RM 0.17 RM 49.30
TOTAL RM 118.90

BROOCH (JUNE)
Units Price RM
Felt 8.4m RM 6.00 RM 50.40
Pin 420 RM 0.12 RM 50.40
Diamond 420 RM 0.17 RM 71.40
TOTAL RM 172.20

HAIR CLIP (APRIL)

Units Price RM
Felt 0.45m RM 6.00 RM 2.70
Clip 150 RM 0.20 RM 30.00
Beads 450 RM 0.50 RM 225.00
TOTAL RM 257.70

HAIR CLIP (MAY)

Units Price RM
Felt 0.54m RM 6.00 RM 3.24
Clip 180 RM 0.20 RM 36.00
Beads 540 RM 0.50 RM 270.00
TOTAL RM 309.24

HAIR CLIP (JUNE)

Units Price RM
Felt 0.78m RM 6.00 RM 4.68
Clip 260 RM 0.20 RM 52.00
Beads 780 RM 0.50 RM 390.00
TOTAL RM 446.68

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 Section 905 (Group Plushiez)

POUCH (APRIL)
Units Price RM
Felt 13.75m RM 6.00 RM 82.50
Ribbon 31.25m RM 1.50 RM 46.88
Button 125 RM 0.10 RM 12.50
TOTAL RM 141.88

POUCH (MAY)
Units Price RM
Felt 17.6m RM 6.00 RM 165.00
Ribbon 40m RM 0.50 RM 93.75
Button 160 RM 0.10 RM 25.00
TOTAL RM 283.75

POUCH (JUNE)
Units Price RM
Felt 27.5m RM 6.00 RM 165.00
Ribbon 62.5m RM 1.50 RM 93.75
Button 250 RM 0.10 RM 25.00
TOTAL RM 283.75

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Direct Materials Purchase Budget

FELT
April May June
Production 22.1m 29.14m 44.08m
Planned Ending 7.2m 8.9m 10.12m
Inventory
29.3m 38.04m 54.20m
Beginning Inventory (0) (7.2) (8.9)
Units to be purchased 29.3m 30.84m 45.30m
Purchase Price x RM 6 x RM 6 x RM 6
RM 175.80 RM 185.04 RM 271.80

RING
April May June
Production 170 260 370
Planned Ending 30 25 35
Inventory
200 285 405
Beginning Inventory (0) (30) (25)
Units to be purchased 200 255 380
Purchase Price x RM 0.17 x RM 0.17 x RM 0.17
RM 34.00 RM 43.35 RM 64.60

BUTTON
April May June
Production 465 680 990
Planned Ending 95 110 155
Inventory
560 790 1145
Beginning Inventory (0) (95) (110)
Units to be purchased 560 695 1035

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Purchase Price x RM 0.10 x RM 0.10 x RM 0.10

RM 56.00 RM 69.50 RM 103.50

PIN
April May June
Production 225 290 420
Planned Ending 88 94 102
Inventory
313 384 522
Beginning Inventory (0) (88) (94)
Units to be purchased 313 296 428
Purchase Price x RM 0.12 x RM 0.12 x RM 0.12
RM 31.30 RM 35.52 RM 51.36

DIAMOND
April May June
Production 225 290 420
Planned Ending 88 94 102
Inventory
313 384 522
Beginning Inventory 0 (88) (94)
Units to be purchased 313 296 428
Purchase Price x RM 0.17 x RM 0.17 x RM 0.17
RM 53.21 RM 50.32 RM 72.76

CLIP
April May June
Production 150 180 260
Planned Ending 30 44 52
Inventory
180 224 312

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Beginning Inventory (0) (30) (44)

Units to be purchased 180 194 268
Purchase Price x RM 0.20 x RM 0.20 x RM 0.20
RM 36.00 RM 38.80 RM 53.60

BEADS
April May June
Production 450 540 780
Planned Ending 90 132 156
Inventory
540 672 936
Beginning Inventory (0) (40) (132)
Units to be purchased 540 582 804
Purchase Price x RM 0.50 x RM 0.50 x RM 0.50
RM 270.00 RM 291.00 RM 402.00

RIBBON
April May June
Production 31.25m 40m 62.5
Planned Ending 7.2 8.4 9.6
Inventory
38.45 48.40 72.10
Beginning Inventory (0) (7.2) (8.4)
Units to be purchased 38.45 41.2 63.70
Purchase Price x RM 1.50 x RM 1.50 x RM 1.50
RM 57.68 RM 61.80 RM 95.55

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Direct Labour Budget

APRIL
Keychain Brooch Hair Clip Pouch
Budgeted Production (units) 170 225 150 125
Hours per unit 0.20 0.10 0.10 0.33
Total budgeted hours 34 22.5 15 41.25
Budgeted wages rate per hour x RM 5 x RM 5 x RM 5 x RM 5
Total wages RM 170 RM 112.50 RM 75.00 RM 206.25

MAY
Keychain Brooch Hair Clip Pouch
Budgeted Production (units) 260 290 180 160
Hours per unit 0.20 0.10 0.10 0.33
Total budgeted hours 52 29 18 52.8
Budgeted wages rate per hour x RM 5 x RM 5 x RM 5 x RM 5
Total wages RM 260.00 RM 145.00 RM 90.00 RM 264.00

JUNE
Keychain Brooch Hair Clip Pouch
Budgeted Production (units) 370 420 260 250
Hours per unit 0.20 0.10 0.10 0.33
Total budgeted hours 74 42 26 82.5
Budgeted wages rate per hour x RM 5 x RM 5 x RM 5 x RM 5
Total wages RM 370.00 RM 210.00 RM 130.00 RM 412.50

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Manufacturing Overhead Budget

APRIL
Variable Overhead
OHR
Keychain Brooch Hairclip Pouch
Variable OH RM RM RM RM
Indirect Materials RM 0.18 6.12 4.05 2.70 7.43
Utilities RM 0.16 5.44 3.60 2.40 6.60
11.56 7.65 5.10 14.03
Fixed OH
Insurance 100 100 100 100
Rental 1300 1300 1300 1300
Depreciation - Machine 28 28 28 28
Depreciation - Laptop 45.45 45.45 45.45 45.45
Depreciation - Car 400 400 400 400
Depreciation - Rental 13.68 13.68 13.68 13.68
Fuels 250 250 250 250
WIFI rate 80 80 80 80
Miscellanous 40 40 40 40
Total Fixed OH RM 2257.13 RM 2257.13 RM 2257.13 RM 2257.13
Total OHR RM 2268.69 RM 2264.78 RM 2262.23 RM 2271.16
Budget OHR RM 66.73 RM 100.66 RM 150.88 RM 55.06

MAY
Variable Overhead
OHR
Keychain Brooch Hairclip Pouch
Variable OH RM RM RM RM
Indirect Materials RM 0.18 9.36 5.22 3.24 9.50
Utilities RM 0.16 8.32 4.64 2.88 8.45
17.86 9.86 6.12 17.95
Fixed OH
Insurance 100 100 100 100

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Rental 1300 1300 1300 1300

Depreciation - Machine 28 28 28 28
Depreciation - Laptop 45.45 45.45 45.45 45.45
Depreciation - Car 400 400 400 400
Depreciation - Rental 13.68 13.68 13.68 13.68
Fuels 250 250 250 250
WIFI rate 80 80 80 80
Miscellanous 40 40 40 40
Total Fixed OH RM 2257.13 RM 2257.13 RM 2257.13 RM 2257.13
Total OHR RM 2274.99 RM 2266.99 RM 2263.25 RM 2275.08
Budget OHR RM 43.75 RM 78.17 RM 125.74 RM 43.09

JUNE
Variable Overhead
OHR
Keychain Brooch Hairclip Pouch
Variable OH RM RM RM RM
Indirect Materials RM 0.18 13.32 7.56 4.68 14.85
Utilities RM 0.16 11.84 6.72 4.16 13.2
25.16 14.28 8.84 28.05
Fixed OH
Insurance 100 100 100 100
Rental 1300 1300 1300 1300
Depreciation - Machine 28 28 28 28
Depreciation - Laptop 45.45 45.45 45.45 45.45
Depreciation - Car 400 400 400 400
Depreciation - Rental 13.68 13.68 13.68 13.68
Fuels 250 250 250 250
WIFI rate 80 80 80 80
Miscellanous 40 40 40 40
Total Fixed OH RM 2257.13 RM 2257.13 RM 2257.13 RM 2257.13
Total OHR RM 2282.29 RM 2271.41 RM 2265.97 RM 2285.18
Budget OHR RM 30.84 RM 54.08 RM 87.15 RM 27.70

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Selling and Administration Expenses Budget

APRIL
Selling: RM Total RM
Advertising 100
Packaging 50
Salaries 800
Car Expenses 750 RM 1700
Administration:
Stationary 150
Cash Register 450
Counter 520
Display Rack 120
Salaries 400 RM 1640
RM 3340

MAY
Selling: RM Total RM
Advertising 100
Packaging 100
Salaries 800
Car Expenses 750 RM 1750
Administration:
Salaries 400 RM 400
RM 2150

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JUNE
Selling: RM Total RM
Advertising 100
Packaging 150
Salaries 800
Car Expenses 750 RM 1800
Administration:
Salaries 400 RM 400
RM 2200

CASH BUDGET
April May Jun
Beginning Cash 40000 24326.22 20202.58
Receipt 4708 8641 12878
44708 32967.22 33080.58
Payments
Direct Material 741.17 775.33 675.27
Direct Labourhead 563.75 759 1122.50
Manufacturing Over 9066.86 9080.31 9104.85
Selling and Administration Expenses 2100 2150 2200
Asset Purchases 7937 - -
20381.78 12764.64 13102.62
Closing balance RM 24326.22 RM 20202.58 RM 19977.96

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