Running Head ACCOUNTING AND FINANCE

Accounting and Finance

Introduction3

Overview of the Product3

Assumption for Financial Data4

Initial Year Goal4

Revenues4

Productions5

Cash5

Price5

Variable expenses5

Fixed expenses6

Marginal Costing Statement8

Break-Even Analysis8

Cash Budget10

Forecast Income Statement12

Forecast Balance Sheet13

Conclusion14

New Hair Care Product

Introduction

Personal grooming is an important part for individuals, no matter whether a person is facing a hard time, they want to look good and they seek for affordable toiletries and cosmetics for treatment. Similarly, people are much concern for their hair and in UK Hair care industry has managed a healthy growth i.e. 5% in 2012 over the inflation rate (EuroMonitor, 2013, pp. n.d). UK has been experiencing increasing trend of colouring and styling their hair and at the same time they want their hairs to look healthy and good. In the section, the focus would be on introducing new hair care product for UK consumers which is affordable, higher quality and easy to use product. This paper is aimed to design a plan for new hair care product. This part will also cover up the assumption made for producing key financial data considering the industry trend.

Overview of the Product

BB hair product is basically Tonic which is a solution that focuses on problem of hair fall. Furthermore, this product will also assist in accelerating consumer's healthy hair growth. The product has been developed to strengthen hairs Root via Root Energisers. The formula used in this product consists of method that helps in re-growth of the hairs having a three way action that has direct impact on hair follicles. This impact is through penetration on the root of the hair follicle and help in clearing up the debris. It re-stores appropriate blood circulation as well as nutrients to the hair-follicle. Beside this, this product formula also avoids hair follicle shrinking and assists them in growing a healthy cycle. Furthermore, BB hair product protects from Dandruff and itchy in Head as well (EuroMonitor, 2013, pp. n.d).

Since this is a new product, currently it has been decided to introduce in 150ml bottle. And all the components and elements are designed accordingly.

Assumption for Financial Data

Financial data assumptions made for this product are purely based on industry trend. Since the objective of the company is to offer the best hair care product to their consumer, high quality and to acquire 15% of the market share a year (Black, 2012, p. 210).

Initial Year Goal

Company aims to be profitable in the initial years. Furthermore, in the first year it is assumed that expenses will be higher not more than the profit and these expenses will reduce after certain time.

Revenues

Revenue would be increasing at the rate of 10% from 6th month while in November and December; this increase will be up to 20%. The reason for this increase has been anticipate due to increase in marketing and advertising expenses. According to the industry, there are three level of market share and considering the hair product, High end market having a 21% of the market share while Mid market comprises of 43% and low end market has ...