JAMS MOTOR PARTS AND ACCESSORIES

MARKET ANALYSIS

SOFTWARE DEVELOPMENT COST

i.
1.

COMPUTATION FOR THE DEVELOPMENT COST

HARDWARE DEPRECIATION COST
* Hardware Acquisition Cost
MacBook Air (2014)

59,994.00

Total Hardware Acquisition

59,994.00

* Based on the Pricelist of VillMan Computer Systems,Inc. ( March 15,2002)

Hardware Cost
Life Expectancy
Development Period
Salvage Value
Annual Depreciation Cost
Monthly Depreciation Cost

59,994.00
10 Years
3.5 Months
P 1,749.83
5,824.42
485.37

HARDWARE DEVELOPMENT COST

1,698.80

Annual Depreciation Cost = Hardware Cost Salvage Value

Life Expectancy
Salvage Value =[ (Hardware Cost / Life Expectancy) * Development Period]
12
Monthly Depreciation Cost

= Annual Depreciation Cost / 12

Hardware Development Cost

= Monthly Depreciation Cost * Development Period

2.

SOFTWARE DEPRECIATION COST

Mac OS X El Captain
PHP
Software Cost

Software Cost
Life Expectancy
Development Period
Salvage Value
Annual Depreciation Cost
Monthly Depreciation Cost

3,200
4,000
P 7,200
P 7,200.00
2 Years
3.5 Months
P 1,050.00
3,075.00
256.25

SOFTWARE DEVELOPMENT COST

896.88

Annual Depreciation Cost = Software Cost Salvage Value

Life Expectancy
Salvage Value =[ (Software Cost / Life Expectancy) * Development Period]
12
Monthly Depreciation Cost

= Annual Depreciation Cost / 12

Software Development Cost

= Monthly Depreciation Cost * Development Period

C. LABOR COST
Labor Cost

= Developers Fee * Development Period

Labor Cost

= P1,000.00 * 3.5
=P 3,500.00

D. MISCELLANEOUS
Transportation
Photo Copy
Printing cost
Others ( Book bind, snack)

Total Miscellaneous

200
50
250
100

P 600.00

E. OVERHEAD COST ( Indicate also the 2nd and 3rd month overhead cost. Show your
breakdown and computation.)
1ST MONTH
Computer
No. of hours a day
No. of days a week
No. of hours a month
No. of Watts
Kwh Used of Computer

8 hrs
5 days
160 hrs
225W
= No. of Watts * No. of hours a month
1000 W
= 225W * 160
1000W
= 36 kWh

Printer
No. of hours a day
No. of days a week
No. of hours a month
No, of Watts
Kwh Used of Computer

3 hrs
1 days
24 hrs
60W
= No. of Watts * No. of hours a month
1000 W
= 60W * 24
1000W
= 1.44 kWh

Electric Fan
No. of hours a day
No. of days a week
No. of hours a month
No, of Watts
Kwh Used of Computer

8 hrs
5 days
160 hrs
80W
= No. of Watts * No. of hours a month
1000 W
= 80W * 160
1000W
= 12.8 kWh

Light
No. of hours a day
No. of days a week
No. of hours a month
No, of Watts
Kwh Used of Computer

8 hrs
5 days
160 hrs
40W
= No. of Watts * No. of hours a month
1000 W
= 40W * 160
1000W
= 6.4 kWh

TOTAL KWH USED = 56.64 kWh

** Basic Charge
Energy (kWh)
First 10 kWh
Next 40 kWh
Next 6.60

56.60
@ 1.74
@ 1.74
@ 3.40

109.44

Currency Adj.
PPA

109.44 * 5.98%
56.64 * 3.154

17.40
69.60
22.44
6.54
178.64

Total Charges

294.62

Total Overhead Cost

P 590.33
(Assumed for 3 months but you have to show the breakdown of computations)
** Based in January 2002 Meralco Bill
SUMMARY
A. Hardware Development Cost
B. Software Development Cost
C. Labor Cost
D. Miscellaneous
E. Overhead Cost

P 6,124.86
896.88
52,500.00
4,220.00
590.33

TOTAL DEVELOPMENT COST

I.

P 64,332.07

COMPUTATION FOR ANNUAL BENEFIT

Selling Price
No of Copies to be Sold

= P 1,039.98
= 100

1st Month
Selling Price
No. of copies Sold
Revenue

Less Expense
Electricity
Distribution
Cost of CD (45 * 9)
Operating Cost
1st Month benefit

1,039.98
x
9
9,359.82

15
50
405
470
P 8,889.82

2nd Month
Selling Price
No. of copies Sold
Revenue

P 1,039.98
x
5
P 5,199.90

Less Expense
Electricity
Distribution
Cost of CD (45 * 5)
Operating Cost

15
50
225
290

2nd Month benefit

P 4,909.90

Table

Month Selling Price

1
2
.
.

Number of Pieces

P 1,039.98
1,039.98

Operating Cost

9
5

470
290

Revenue

Benefit

9,359.82
5,199.90

P8,889.82
4,909.90

*** 12

*** COMPLETE THE TABLE UP TO 12 MONTHS. FOLLOW THE 1ST AND 2ND MONTH
TOTAL ANNUAL BENEFIT

(benefits)

Profit for 1st year

= Total Annual Benefit Total Development Cost

Payback Period

= Total Development Cost / Total Annual Benefit * 12

Return of Investment

= Total Annual Benefit / Total Development Cost * 100

Note:
This is just a format of market analysis. The proponents must present the current cost during the
time that they will use this in there thesis.