Proposal that is aimed at wooing the financial support of a business Essay

Proposal that is aimed at wooing the financial support of a business funding agency - Essay Example In that respect, New Lemona Drink Entrepreneurs main goal is to provide the best nutritious soft drink to our clients’ at the most affordable prices in the market. Background Information The central issue of focus in this proposal is to establish the best remedial measure against the menace of malnutrition. This problem has been gaining momentum of the past centuries and is headed to ruin the better part of the coming generation. The increased nutritional imbalances and inadequate consumption of fruits has been blamed on this health matter. Nevertheless there are other unidentified factors attached to it that has not been given critical analysis so as to come up with an all round measure. It has also been noted that some of the nutritious measures that had been developed to curb this condition have failed woefully in different ways. It is out of this need by the society that New Lemona Drink entrepreneurs has invested resources to come up with an a soft drink that would see th e menace reduce by more than half by the year 2030. New Energy Drink Costing and Report for Investors The firm has decided to launch a new drink product named â€Å"New Lemona Drink†. In this regard the costing and other relevant information is presented below. On the basis of this information and analysis, a report for investors has been drawn. Assumptions Following are the assumptions on which the manufacturing and sales of the new energy drink are based: a. The company uses its already established main manufacturing unit which has enough capacity to meet the requirements for the production of â€Å"New Lemona Drink†. Furthermore, the machinery which was partially in use previously has also been deployed for the purposes of the production of this new product. b. There is no additional labor required for the production, as the management has initiated the day and night shifts for production. Initially only a quarter of the total labor employed is required and hencefor th with efficient rotation program, the company is employing its existing labor in the day and night shifts. c. The suppliers of the raw material for manufacturing â€Å"New Lemona Drink† are principally the same which are usually contacted for the purchase of raw materials for other products. Only one new supplier has been introduced being named here as â€Å"Juicy Suppliers and Manufacturers†. This supplier provides the material specially designed for the taste of the new product. d. The â€Å"New Lemona Drink† is manufactured by Fresh fruits. Harvested fruits will be used in the manufacturing of the entire drink. e. The drink will be available in containers of 300ml and 500ml f. The packing of the drink is outsourced from Olive Packaging Company. The drinks box carries the company name and logo with features of the product clearly mentioned. g. The company is employing the marginal costing approach in determining the cost and margins associated with the new p roduct. The approach will consider the variable portion of the total costs of the product and will then be subtracted from the revenue to show the total contribution margin of the product. This approach has been adopted on the basis that the manufacturing of this new product does not require significant amounts of fixed costs and therefore it is possible to analyze the profitability and viability of the product while