THE FINANCE
What it Costs
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Retail price: $130 per box
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Cost to make, ship and sell: about $55 per box ($38 manufacturing, $9 shipping, $8 payment and platform fees)
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Left over per box: $75 (58% of the price)
Start-up costs: $45,000 in total, itemised in the chart beside
Financial Goals
These targets come from our research: 82% of surveyed students think less screen time would sharpen their focus.
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Cash Flow Statement
Cash peaks at $42,300 once the pre-orders land, then falls to $4,030 by the end of Q3 as we pay for stock and testing. That is the tightest point of the year. If only 200 people pre-order, cash would dip about $3,500 below zero, so we keep a $5,000 family top-up in reserve. By Q4 sales lift cash to $15,540.
Profit and Loss
Year 1 ends with a loss of $8,700: $7,500 from operations, because we are 100 boxes short of break-even, plus $1,200 of loan interest. That is expected, because start-up costs are paid upfront while sales build. Gross margin is a healthy 71%, and the loss closes once we pass 600 boxes in Year 2.