HiVogue.

pk

Business Proposal
Presented by:
Hammad Hassan (Hammadhasan28@yahoo.com)
Contact: 03322367458
Anum Anees (Aemananees123@gmail.com)
Contact: 03422686723
Contents
Executive summary .......................................................................................................................................................2
Partner’s Profile ............................................................................................................................................................3
Hi-Vogue.pk ...................................................................................................................................................................4
Mission Statement ....................................................................................................................................................4
Vision Statement .......................................................................................................................................................4
E-Commerce Industry: Analysis ....................................................................................................................................6
INVESTMENT REQUIRED ...............................................................................................................................................7
Logistics Plan .................................................................................................................................................................8
One-day Delivery Program: ......................................................................................................................................8
Pick-up Store: ............................................................................................................................................................8
Market place .................................................................................................................................................................9
Product ..........................................................................................................................................................................9
Price ...............................................................................................................................................................................9
Place ............................................................................................................................................................................10
Distribution Center .....................................................................................................................................................10
Marketing ..................................................................................................................................................... 10
Corporate Social Responsibility/Customer Engagement/CSR ...................................................................................11
Green Marketing- Giving Back to the Nature.........................................................................................................11
Competitors.................................................................................................................................................................13
SWOT Analysis ............................................................................................................................................................14
Business Model ...........................................................................................................................................................15
Financial Projections ...................................................................................................................................................16
Investment Proposal ...................................................................................................................................................18
Phase-II ........................................................................................................................................................................19
Company Description ..................................................................................................................................................19
Technology plan ..........................................................................................................................................................20
Target Market .............................................................................................................................................................22
SWOT Analysis ............................................................................................................................................................22
Costing .........................................................................................................................................................................23

1
 Executive summary
Hi-Vogue.pk is an E-commerce shopping platform for Women’s clothing, accessories, bags and
home & living stuff to fulfill the need of markets. It started by Hammad Hasan and Anum Anees
on April 5, 2018 and covers B2C market. Since the start of Hi-Vogue, it performs quite well on
promotion via social media (Facebook and Instagram) and have able to generate satisfactory
sales. Hi-vogue not only sell their own designed kurtis but also invite many vendors, who are
selling products from Hi-Vogue platform.
It has expected that in Pakistan, the total market of e-commerce will reach to $1 billion by
2020, but this $1 billion figure is not more than 2% of total retail shopping in Pakistan. This
shows there is much room and space to groom Online Shopping (e-commerce) in Pakistan.
Hivogue.pk has some of new ideas, which make an ecommerce business different from others.
It incorporates new user-friendly website along with provisional division, fast delivery and pick-
Up store, CSR Campaign and green marketing. However, our plan is not limited to e-commerce
marketplace but we will also launch retail store in future as well, name with “HONOR” which
will be a subsidiary of Hi-Vogue.pk.
Honor will be an upscale and fast fashion retail outlet, which is going to give an exceptional
shopping experience and by launching a “visual/digital dressing mirror” a new technology user
first ever in Pakistan, which will give an edge in Pakistan.
To make all think happen into reality, we have line up all our plans. First start with e-commerce
marketplace after making sustainability, we will launch our retail outlet to carter retail shopping
lovers.
We have worked hard for costing and budgeting and precisely made a report to develop an
efficient business and turn into profitability. We are seeking 5 million for start-up from the
investors specifically for Hi-Vogue to develop proper infrastructure to execute our fast delivery
programs, customer building and scaling up business to reach its potential.
Every big business start with the small steps, but their passion and ambition made them famous
and bright within the country as well as internationally. We believe the 5 million amounts for e-
commerce business at minimum level. Our innovations and transformation for e-commerce in
Pakistan will work and help us to make competitive advantage to grow the business and to
generate revenue.
“Journey of thousand miles begins with a single step”.

2
Partner’s Profile

Hammad Hasan:
A business graduate from Iqra University main campus, he started his career with an internship
at Business Recorder in 2016 then he joined EFU life insurance as sales consultant. He also
worked as an Internee at Gul Ahmed in finance department in 2017. He spent much time as
business Development executive in Red Eye Wolf Pvt Ltd. from Sep 2017 to Jun 2018. He
wanted to get some experience in apparel business because his aim was to introduce his own
brand so he started selling brand replicas through social media page name “H.A Collection” for
around 1.5 years. In April, 2018, he made his dream come true and started his own ecommerce
brand name Hivogue.pk with his partner Anum Anees. He is currently responsible for accounts
management, inventory management, recording and maintaining sales data and responsible for
paid ads on social media for their brand.

Anum Anees:
A business graduate from a well-known university and started his career by writing articles for
Dawn group of newspaper. She worked as online content writer at just digital (pvt). Ltd in 2016
she did an internship at Business Recorder as news writer in 2016 then she joined A.I.B Global
Marketing as HR Officer in 2017. She has taken some experience in apparel business by running
a page “H.A Collection” on Facebook with his partner Hammad Hasan. She was use to selling
brand replicas through this page for around 1.5 year. In April, 2018, she has launched her own
ecommerce brand name Hivogue.pk. She also has designed casual wear for her brand
hivogue.pk and maintained social media marketing on all social networks along with content
management, graphic designing, vendor’s management and customer care for Hi-Vogue.pk.

MENTOR: SYED SAEED UR REHMAN

Saeed ur Rehman is a fashion designer, and our mentor in designing and help us in operation
management as he has 35 years of experience in the fashion industry. He also has 17 years of
experience as Production manager at Amir Adnan. He is also running its own production with
the name of Rehman where he designed and manufactured Ethnic men’s wear. In 2014-15, he
was associated with EDEN ROBE, working as designing and production manager. Then he
worked with Kurta Corner as Head of designing and production in 2015-2017. Now he is
currently working with Dinners as Head of production.

3
 Hi-Vogue.pk

Hi-Vogue.pk is an E-commerce shopping platform for Men’s & Women’s clothing, accessories,
bags and home & living stuff to fulfill the need of markets. It started from April 5, 2018 and
covers B2C market.
Hivogue.pk aims to provide unique products, crafts & innovative designs with quality stuff
which are not easily available in the market, so that; our target market have to purchase from
our virtual store.
Hivogue.pk brings only designer made products by making collaborating with some talented
designers who brought unique stuff in our platform and they are working as Business Partners
or Vendors. Hivogue.pk is also producing their own designs and stuff for their beloved
customers including casual and festive wear. It currently deals with the category of female
clothing, bags & clutches, Art & crafts, home & living stuff, cosmetics, accessories and furniture.
Hi-vogue has about 200 products initially and has 15 vendors, who are selling from hivogue.pk.
Hi-Vogue not only operates in Karachi, but also delivers to others cities of Pakistan,
collaborating with third party logistics provider Leopards.
Hi-Vogue has sold up to 60 products and 80k revenue of in last 6 months. Despite on that, hi-
Vogue spends 10k for marketing/promotions (paid ads) via social media.
However, Hi-Vogue’s website was not build on custom build website, but because of limited
budget, we build website on Word Press and free source design theme.

Mission Statement
To satisfy every customer’s desire globally by given them innovative shopping platform and
make surrounding green by given back to the earth.

Vision Statement
Give convenient and standard life to everyone in the world and become a part of everyone’s
lives.

4
5
E-Commerce Industry: Analysis

E-Commerce is not new phenomenal for world, but the boom of ecommerce shopping is
getting start in Pakistan. Pakistani businesses have embraced e-commerce from around 6 to 7
year ago. Hundreds of retailers, ranging from clothing outlets to consumer’s electronic
equipment stores, are now using websites to sell goods to customers.
Shopping via online is increase quarter by quarter as people getting excess to internet and
being know about online concept. It has expected that, the total market of e-commerce will
reach to $1 billion by 2020, but this $1 billion figure is not more than 2% of total retail shopping
in Pakistan. This shows there is much room and space to groom Online Shopping (e-commerce)
in Pakistan.
In Pakistan, there are two main factors, which strengthen online shopping.
1) Cash on Delivery
2) Discounts
Consumer attracts to online shopping because of huge discounts given by marketplace and
their merchants. Secondly, cash on delivery is taking around 85% transactions, because
customers have fear of security to share personal accounts data.
Despite that, there are many factors, which are being strengthened e-commerce, but there are
many gaps present in the markets due to which industry still struggling to flourish to its peak.
Some of the following:
Industry still lacks supportive technology i-e logistics and customer services, people gets late
parcel, which discourage consumer to shop online. Sometimes people get wrong products or
dummy products and there is no proper channel available; so that customers can resolve their
issue. Additionally, people gets know that these discounts are fake to catch consumer mind. In
addition, there is huge discrepancy between what show on website and in reality.
These are the issues, which consumers think to gets resolve as soon as possible. So that the
industry stretch-out to full potentials.

6
INVESTMENT REQUIRED

We want to expand our business all over the country but we lack the funds for customer build
up, marketing because there is a need to make people aware of our brand to gets more sales.
We need investment for developing proper infrastructure for our business (including high
quality website with inventory management system and proper distribution center). We need
investment for scale up business for its maximum potentials and to include more categories in
our platform more over we need to bring more vendors for large SKU.
We had conducted research to know about customer’s perception and issue regarding online
shopping. After analyzing people’s views, we have made this business proposal to avail
opportunities lies in the market and to solve problems as well.
We have calculated amount to be required to execute our plans, and we are very confident that
our plans and strategies will prove to be a successful in market and which will help us to bring
customers to shop and ultimately which will generate positive cash flow for company.

“Investors are pinched between 2 kinds of fear: fear of investing in startups that
fizzle and fear of missing out on startup that take off”
– Paul Graham, Co-founder of Y Combinator

7
Logistics Plan

In online shopping, a transaction will not complete until it will deliver to customer’s home or in
given address, which means logistics, bring important role throughout e-commerce business.
We often do not realize customer behavior toward online shopping, logistics and their cost,
time of the delivery, which would support overall business strategy.
With the fast growing online shopping bring fastest shift in consumer behavior and expect for
speedy delivery, right and quality products and in returns, it helps to earn the highest levels of
customer loyalty and revenue growth.
In Pakistan, one of the major issue is logistics, delivery time, and accuracy with efficient as well.
Customers get late delivery, for same city it will deliver around 2-3 days or for other cities may
goes to 3-5 days. This long time allow customers to change his mind. Some time they do not
received their products. In whole operation from placing order to deliver products, sometimes
customer gets damage products and sometime wrong products, which totally discourage
customers to do online shopping, after that, there is no department to solve customer issue
properly.
For this scenario, we have analyzed the situation by getting reviews of customers, that
customers want fast delivery to get immediate pleasure.

One-day Delivery Program:

We have a plan to start One-day delivery program throughout the country, but initially it will
start from Karachi. However, it will require too much efficiency and accuracy to deliver
products fast so we decided for strategic alliance with Bykea service in Karachi because It is the
one who help to move people, parcels and payments efficiently, saving time and money. They
are cost efficient and fast movers for our one-day delivery program in Karachi.
Obviously, there will be different offers for customers to choose the best fit for them.
• One-day delivery (there will be free delivery for promoting and attract more shoppers
then there may be charges a/c to places or subscriptions.)
• Two-day delivery (different price)
• Easy delivery within a week
• Free home delivery

Pick-up Store:
Efficient work always need improvements, so we have decided to improve our delivery channel
by open up different pick up stores in every possible area so that customers will pick their
parcel from their nearest pick up store. We are aware of some locations that will be good
enough where we would have more demand. Additionally, we would make an alliance with any
other courier company to use their branches for pick up store. (E.g. all leopards’ branches will

8
also use for pick up store for Hi-Vogue.pk). After successfully executed, this plan in Karachi,
then this model will expand to whole country.

Market place
As everyone, one tries to do something different from all running businesses, we have planned
a different style for our website to serve customers and to make things easy for our vendors.
We will make another category in our website in which we will divide our market with all five
provinces of Pakistan. So that our customers will have a chance to shop specialty of different
provinces and definitely he/she wants to buy more product from their own province. We will
give our loyal customers extra discounts and fast delivery service according to the policies of
hivogue.pk.
For vendors this idea will become more efficient as if they want to sell their product with in
specific province so the products will show to that province’s category only or if they want to
sell, their product nation-wide so, their product will be showing in main pages of websites.
However, there will be different commission model for vendors, those who want to sell on
provinces category only or want to sell nation-wide.

Product
As Hi-Vogue.pk will be marketplace where seller comes to sell their products to buyers,
categories from Fashion apparel to consumer’s electronics to home appliances.
Along with that, Hi-Vogue.pk will make some investment in fashion apparel to make distinct
brand in future.
Hi-Vogue will launch female apparel with the distinct name Honor, and sell via Hi-Vogue
marketplace initially, and then Honor will become subsidiary of Hi-Vogue in future and open up
their own retail with distinct brand name “Honor” to cater Retail-shopping lovers. However,
we have some unique plan for Honor as well, which will give us competitive advantage in the
market. The feasibility of Honor completely explained in Phase 2 of this report.
Same thing will execute for Men’s as well gradually.

Price
➢ Hi-Vogue.pk will earn through its vendor’s commission. Hi-Vogue charges various
commissions for different categories, according to demand of products and the cost of
operations.
➢ Revenue from selling own products.

9
Place
As Hi-Vogue is e-commerce marketplace, customers can order products via online from any city
in Pakistan

Distribution Center
It will start from Karachi, and then it will cover first tier cities like Lahore, Islamabad,
Sialkot, Rawalpindi, and then move to second tier cities. There will be 2 distribution
center will be open in Karachi, at Gulshan and other will be depend according to most
demanding area, it will help us to deliver products fast and efficient

Marketing
Online marketing
➢ We would focus on creating Word of Mouth, and convey through Social media
marketing, and will SEO to bring more traffic to our marketplace.
➢ We will outsource to manage Social media pages, so the maximum people can easily
reach to our brand.
➢ Google AdSense.
➢ SMS Marketing
➢ Short video, ads will make for online Content.

Offline marketing
➢ We will do promotions to different universities of Pakistan, to offer various discount
offers for youth.
➢ We will make portable stalls in universities, so that customers can come and experience
our brand quality and our service.
➢ Stalls in Universities will help us to get more customer subscriptions to let them engage.
➢ We will select brand ambassador to promote our brand.
➢ Place banners and pan flex in different universities and colleges.

10
Corporate Social Responsibility/Customer Engagement/CSR

Being a human, we all have social responsibility to give back to the society by doing good things
together and by sharing love with those people who has deprived with necessity of their life so;
we as human being have responsibility to serve humanity. To contribute for society and engage
customers actively and let them own this campaign as responsibility we will launch campaign in
Ramadan, in which we will let customers an opportunity to share their pre-loved clothing and
shoes to Hi-Vogue and Hi-Vogue will gives fresh look to those products and distribute to poor
people or street children. (Everyone can be a part of HI vogue’s family through this campaign
under the given policies).

11
Green Marketing- Giving Back to the Nature
It is time to be Eco-friendly initiative within marketing can also encourage customers constantly
given back to the earth. Hi-Vogue team being a good citizen are responsible for creating fresh
and eco-friendly environment by which we can give back to the earth.

Hi-vogue has planned to create Eco friendly bags, which are made of recycled material so that
we can take an initiative to control pollution from our country and second is to print plant-able
tags. Each tag was not only recyclable, but also made of material that contained seeds, so the
tags would be place in garden to contribute to nature’s beauty. Enabling instant reuse of a
once-worthless aspect of a product is not only a green practice, but it makes Hi-Vogue product
even more attractive to potential buyers as it engages the user in a new and spontaneous
activity that promotes an environmental-friendly philosophy.
Eco-friendly environment could not be creating until your surrounding is not fresh and clean. In
Pakistan, there is much more to work for it so, why not us?

12
Hi-Vogue also planned to start a campaign, name with “Do Green to breathe Clean” to
implement this strategy we will work in a team in which every member of Hi-Vogue will involve
to clean one area of our city once in month by gathering trash and let it bring into the right
destination.

Competitors

Daraz is one of the poineer of ecommerce in Pakistan, and has invested millions in development
of infrastruture and marketing and promotions. Daraz started Black Friday, a domper discount
event. Hence there is no doubt that, daraz is biggest e-commerce gaint by revenue in Pakistan.
But we have analyzed some gap of Daraz, which hivogue can counter to make strong position in
market.
Gaps in Daraz.pk How Hi-Vogue.pk will Counter!
Many sellers are registered on Daraz.pk and We need to give benefits to vendors, so that
trying to sell their product but these vendors vendors come to our marketplace to sell their
donot get so much benefits which motivates products. (e.g; fast reinbursment to vendors and
them for long term. low commission)

Daraz.pk has lots of visitors and many customers
who buy from daraz.pk, but there is no proper
customer service and no loyal customers on
offline ground level.
Hivogue wil give proper customers services
channel and our CSR activities, stalls in many
universities make customers aware from
hivogue.pk and which helps to subsribe our
website and make them loyal.

Daraz.pk don’t has their own logistics system but Our fast delivery transformation and pick up
3PLPs acting as logistics partner but no fast stores with the help of 3PLPs will make us strong
delivery system yet. in the market.

13
Other Competitors

SWOT Analysis
Strength: Weakness:
✓ Innovation and transformation of ✓ New in the market
logistics (Fast delivery) ✓ People are not much aware from us
✓ Marketing/ branding/Engagement ✓ Limited Capital
✓ Customer Service
✓ Online and offline Shopping Experience

Opportunities: Threats:
✓ Untapped market ✓ Market leader Daraz.pk
✓ Growth in Internet User ✓ New comers
✓ Growth in e-commerce market ✓ Entrant of Ali baba into Pakistani
✓ Technology market

14
Business Model

Key Alliance with Value Proposition Customer Relationships Customer

H ✓ Return Policy Segments
I ✓ Vendors/Manufac ✓ Fast ✓ Trust
turer delivery ✓ After Sales Services ✓ Internet
- ✓ Designers ✓ Low pricing ✓ CSR Campaign users
✓ Leopards/Bykea (Discount)
V ✓ Publishers ✓ Rebate
O ✓ SMM/SEO Policy
✓ Universities ✓ Quality
G Key Resource
✓ On time
Channels
service
U ✓ Distribution ✓ Website
Centre ✓ Mobile apps
E ✓ Human Resource ✓ Logistics
. ✓ Website ✓ Pick-up store
✓ Application
P ✓ Inventory
management
k
Cost Structure Revenue Stream
✓ Development and maintenance/ ✓ Commission from vendor’s sales
Training ✓ Retail
✓ General administration and ✓ Sponsored ads
salaries ✓ Fast delivery services
✓ IT and fulfillment cost
✓ Shipping cost (Sometimes)

15
 Financial Projections

INCOME STATEMENT
First Year Second year 3rd year 4th year
Sales from commission 1920000 2784000 4036800 5853360
Sales (own kurtis) 5815333.333 7559933.333 9827913.333 12776287.33
Sales (own t-shirt) 600000 780000 1014000 1318200

Total Sales: 8335333.333 11123933.33 14878713.33 19947847.33

COGS: 2147200 2791360 3628768 4717398.4
Gross Profit: 6188133.333 8332573.333 11249945.33 15230448.93

Expense:
Office 240000 200000 200000 200000
Electricity bills 180000 180000 180000 180000
office expenses 120000 120000 120000 120000
Salaries 855000 1250000 1500000 1700000
D.C 200000 260000 338000 439400
MKT 1100000 1320000 1584000 1900800
others 130000 169000 219700 285610
Total: 2825000 3499000 4141700 4825810
EBIT 3363133.333 4833573.333 7108245.333 10404638.93
Tax 15% 504470 725036 1066236.8 1560695.84
EAT 2858663.333 4108537.333 6042008.533 8843943.093

16
 Cash Flow Statement (1st Year)
Operational Activities:
Cash Receipt from Customers 8,335,333
Inventory Purchases: 3,757,600
Transportation In
Administrative Expense: 2,825,000
Income tax
Net cash flow from Operations: 1,752,733
Investing Activities:
Sales of property -
Infrastructure Cost 900000
purchase of investment -
Purchase of furniture 500,000
Deposit
Making Loan
Net cash flow from Investing 1,400,000

Finance Activities:
Borrowing from Investor 5,000,000
return to Investor
Net Cash from financing 5,000,000

Cash flow at beginning: 0

Net cash flow: 5,352,733

17
 Balance Sheet (1st Year)
Assets Liabilities and Equities
Current Assets Liabilities
Cash 5,352,733 Tax payable 504470
Inventory 1,610,400 Investor Payable 571732.67
Advance and
Supplies Deposit
deposit
Fixed Assets Equities:
Furniture 500,000 Capital 5,000,000
Website/Inventory system 900000 Profit 2,286,931

Total 8,363,133 Total 8,363,133

Investment Proposal
As we have explained our short & long term planning for Hi-Vogue and express our passion to
change the trends in market and transform delivery channel into fast deliveries to satisfy and
treat customers as they want to because we believe customers are everything.
From building infrastructure to Customers Building, require investment to execute our plan
properly, we proposed to invest 5 million Rupees.

18
 Phase-II

After successfully execution of Hi-Vogue.pk plan in market, we will launch our first retail outlet
with the name “HONOR” to make strong position in market and focuses on retail shopping
lovers.

Company Description
“HONOR” will be a subsidiary of Hi-Vogue.pk and it will target Retail shopaholics, its initial
target customers will be females from teen group to onwards.
HONOR main concern is to bring changes and variations regarding fashion, trends and
technologies that will enlighten fashion industry all over the country, and to keep up well-
disposed relationship with the customers and fetching up new trends with fascinating brand to
delight individuals and bring long-term loyalty.

Vision Statement
“To build up leaders, and make innovations in such a way that Pakistan’s Fashion industry
brings latest fashion initiator all around.”

Mission Statement
“To satisfy the desire of shoppers, with refreshing styles and trends that inspires them, under
the consideration of all our ethical and cultural values.”

19
Technology plan
As we know that technology plays an important role in the business to be successful and
smooth survival, every organization relies on technologies for routine operations, to keep
records, to contact suppliers, production as well as for engaging customer to promote the
business, now a day there is no more organization surviving without technologies. It has
become a great need of today.
To upgrade fashion industry with technology, Honor has decided to introduce Digital dressing
mirror first ever in Pakistan. Digital dressing room can be said a new word or an innovative
technology in Pakistan, but it has made its benchmark in Europe’s fashion industry. As per the
name Digital changing room “It is a virtual mirror use to try clothes, giving the chance to
preview products without trying them on physically but see yourself on a mirror in selected
outfit”.

Cost of Digital Dressing Mirror

As per all our research, we have concluded that the cost of digital dressing mirror is around 6.5
Laces and after all the taxation on it, we will get it, for around eight laces.
It has observed that today’s customer want convenience as much as possible. We have noticed
that customers buy an outfit, when they like it and when they feel that it suits them. They want
to see themselves in a dress before purchase. There are lot of brands and local retailers give
facility of changing room but customers feel uncomfortable to use these room specially

20
females. Therefore, we want to be the one, who provide latest technology advancement
especially for females “a digital dressing mirror” which makes our customers feel comfortable
and more convenient in the public places. They can see themselves in selected outfit without
changing it physically.
A Digital dressing mirror will be the new way for customers, to try clothes, which they have
never tried before, and the availability of digital dressing mirror will change the customer’s
attitude and behavior towards shopping.
This digital dressing mirror will make us unique, as our customers will have an amazing
experience through it, for the first time in Pakistan, but also give us a chance to make an edge
among all the fashion brands. This will be a great way to capture our target audience and grab
their attention towards our brand, this will not only increase our sales, but it will be convenient
and fun for our customer to try a dress by just one click.
We have researched on it by conducting survey among IU students and outside the university.
We have very positive results, we included people having age group between 18 to onwards,
and concluded that people feel so excited for such kind of technology in Pakistan; they want to
try it happily, because they can imagine how much it will be convenient and fun for them.

21
Target Market
Target market would be female.

Honor’s Services
✓ Home delivery
✓ Warrantees
✓ Credit payments according to terms and conditions
✓ Alteration of outfit

SWOT Analysis

Strength: Weakness:
✓ Technological Innovation ✓ High cost to start
✓ Strong brand name ✓ Limited Resources
✓ Hi-Vogue.pk an online Partner ✓ Don’t have own textile factory

Opportunities: Threats:
✓ Huge market ✓ Big players in the fashion Industry
✓ Demand for latest clothing style is always ✓ Fluctuations in Cost prices
on peak

22
Costing
Materials used in product:
Items Cost
Fabrics 100Rs/ per meter (from Orient)
Digital Printing 150Rs/ per meter
Normal Printing 95Rs/ per meter
Computerize embroidery 150Rs.

Kurti cost (per unit) Suit cost (per unit

630 Rupees 1200 Rupees
Average selling price Average selling price
1500 Rupees 2500 Rupees
Profit Margin Profit Margin
On average = 970 rupees (per unit). On average = 1300 Rupees (per unit).

Initially we will make 330 units of 3 pc suits and 600 units of kurtis. Gradually our variable cost
will decrease when we will start producing large number of units.

Break Even Analysis

Average selling price of both (suit and Kurti) = 2000
Average cost price of both (Suit &Kurti) = 915

First Year: 3,585,000/ (2000-915) = 3304 units.

Second Year: 5,680,000/ (2000-915) = 5235 units
Third Year: 7,750,000/ (2000-915) = 7143 units.

***The End***

23