Assignment 2: Cost Drivers

Assignment 2: Calculating Revenues

Student’s Name

Institutional Affiliation

Introduction

Taking water is something that is very important. Each person is supposed to take a certain amount of water per day. To promote the taking of water, I will provide consumers with alkaline water. Alkaline water has benefits beyond the common tap water and bottled water. Some of the benefits of bottled water are its anti-aging properties, cleansing properties, hydration, weight loss and boost the immune system (Kozisek, 2005). Alkaline water has an alkaline pH in comparison to the tap water that is acidic. Alkaline water contains nutrients that enable the water to have the above-mentioned effects on the body.

My company in partnership with the producer of alkaline water aims at increasing the intake of water in the neighborhood and thus the purpose of the business is to distribute the water in the community. Alkaline water, the business will distribute the water in various sizes such as 300ml bottles, 500ml bottles, 1 litre, 5 litres, 10 litres and 20 litres. The purpose of the business is to deliver non-alcoholic beverages to homes and offices in the community.

It is expected that the company will be profitable within the first year. The product list for the business will total 6 products. The sales for all of the products is not expected to be the same but the total revenues earned is expected to increase over the 12 months and the company should breakeven in the first year and be profitable.

Product	1	2	3	4	5	6
Unit Price	$ 10.00	$ 5.00	$ 8.00	$ 2.00	$ 7.00	$ 4.00
Sales (Units)
January	250	500	300	700	350	600
February	275	550	330	770	385	660
March	303	605	363	847	424	726
April	333	666	399	932	466	799
May	366	732	439	1025	512	878
June	403	805	483	1127	564	966
July	443	886	531	1240	620	1063
August	487	974	585	1364	682	1169
September	536	1072	643	1501	750	1286
October	589	1179	707	1651	825	1415
November	648	1297	778	1816	908	1556
December	713	1427	856	1997	999	1712
Total Units Sold	5,346	10,692	6,415	14,969	7,484	12,831
Sales	$53,460	$53,460.71	$51,322.28	$29,938.00	$52,391.50	$51,322.28

References

Kozisek, F. (2005). Health risks from drinking demineralised water. Nutrients in Drinking Water, 148-163.