THE FINANCE

Break-even

• Estimated fixed start-up costs (tooling, app development, certification, initial marketing): ~$45,000
• Break-even point: approximately 740 units ($45,000 ÷ $61)

Pricing & basic margin

• Retail price: $99 per unit
• Estimated cost to manufacture (components, assembly, packaging): ~$38 per unit
• Gross margin: ~$61 per unit (~62%)

Funding requirement

Study Quest needs approximately $45,000–$50,000 to fund its first manufacturing run, app development and
launch marketing:
• 300 crowdfunding pre-orders at $99 = $29,700 (roughly two-thirds of what’s needed) — this also
validates real demand before committing to a full manufacturing run

Study Quest — AT3 Working Document
• The remainder from founder/family investment and a small business loan

Financial goals (KPIs)

1. Reach break-even (~740 units) within the first 12 months
2. Convert at least 300 crowdfunding pre-orders before the first manufacturing run begins