Question

5. A new startup company will be producing environmentally friendly diapers and baby products, and you have been named as the chair of its budgeting committee. Thanks to generous investors, and the personal fortune of the company's founder, you have been given $50 million for five years. Using this resource, create a basic budget for the company that shows the operating budget and the financial budget, and also deals with the various costs that a company has to deal with.

the income

just give me what u got

Answer 1

The basic budget for the new start up -

S no	Expenses	Year 1	Year 2	Year 3	Year 4	Year 5
	Fixed Costs	In Millions
1	Rent or Lease Expenses	1.2	1.2	1.2	1.2	1.2
2	Machines and Equipment Cost	2	0	0	0	0
3	Infrastructure Setup Cost (Inclusive of Installation Charges)	0.5	0	0	0	0
4	Insurance and Taxes	0.1	0.1	0.1	0.1	0.1
5	Depreciation	0	0.4	0.32	0.256	0.181
6	Overhead Expenses	0	0.1	0.1	0.1	0.1
	Variable Cost
7	Raw Material	1.5	1.8	2	2	2
8	Maintenance and Repairs	0	0.2	0.2	0.2	0.2
9	Electricity Expenses	0.5	0.5	0.5	0.5	0.5
10	Licencing Charges	0.2	0	0	0	0
11	Marketing and Advertisement Expenses	1.5	1	1	0.5	0.5
12	Logistics	1	1.2	1.2	1.2	1.2
13	Travel Expenditure	0.2	0.2	0.2	0.2	0.2
14	Wages	0.5	0.5	0.5	0.5	0.5
15	Miscellaneous	0.25	0.25	0.25	0.25	0.25
	Operating Cost
16	Office Supplies	0.1	0.1	0.1	0.1	0.1
17	Web Hosting and Domain Charges	0.05	0.05	0.05	0.05	0.05
18	Research and Development	1	1	1	1	1
19	HR Payroll	1	1	1	1	1
20	Utilities	0.05	0.05	0.05	0.05	0.05

20% depreciation is considered for the calculation of Depreciation Cost. Total expenses for 5 years are budgeted at 49 Million approx.