variable expenses,cost function , profit function,revenue function....

3. MISS. FAIZA

4. “Life is a learning experience”. We have learned the validity of this statement time and
time again. Every time we think we know something, we look back a year later and
realize how little we know and how much we have learned. This Feasibility Report has
convinced us again, not in the learning but also in terms of the vast team of talented
people that take part in creating this report. We believe each person plays a piece of a
puzzle to make the complete picture, some pieces are bigger then others, but
without anyone piece the picture would not be completed.
We want to pay tribute to our worthy teachers who are the main source of
enlightenment for our minds.
This project is one of the sources of knowledge about the “Business” for us. We
are especially thankful to our honorable teacher MISS.FAIZA provided us
guidance, inspiration, suggestions and encouragement that helped us in all the
time of research for and writing of this project.

6. NAME OF
PROJECT
UNITED FLOUR MILL
LOCATION Small Industries Estate
NATURE OF
INDUSTRY
Flour Mill – new project
PRODUCT
RANGE
Flour, Maida & Bran
INSTALLED
CAPACITY
8 Body Flour Mill
PURPOSE OF
LOAN
To meet the Capital Cost of the Project
BRIEF
DESCRIPTION
OF MACHINERY
Machinery would be purchased from local suppliers of machinery having good reputation
in market in this regard.
ESTIMATED
COST OF THE
PROJECT
Debt 60% 40,687000
Equity 40% 27,125000
Total 67,8120
NAMES OF
LOAN
Picic
Long term loan
NAME OF
MACHINERY
SUPPLIERS
M.YOUNUS MALIK
SUTLUJ INDUSTRIES
SMALL INDUSTRIES SHOP 5/6

7. Wheat is one of the most important products for all of region of the
world. Without wheat
human life is incompleted. It is become more important not only by the
fact of improvement international value. It’s a first food item that an
important for all over the world. This business also important for a
Pakistan. And last decades the flour mill are increase due increase in
demand of flour.

8. Availability of raw material
Availability of utilities
Availability of labor.
Technical facilities
Whole year producing process
Large demand of the people.
Profitable Business

9. The most feasible location for the plant would be in or near the wheat
producing regions of Punjab.
This is advisable as transportation costs would be reduced and contact with
growers/farmers directly can be made.
 It is usually the case that the farmers are willing to approach the
manufacturing plant directly if it is located near to their lands.
 However, the availability of trained personnel in the locality has to be kept
in mind as well as the availability of suitable residences because costs could
rise if there was a problem in the accessibility of the location from other
urban area.

10. The best location of any plant is important and greater effect on business.
The business can run if all input is available. We decide location the small
industrial area of city followings factor should be examined.
Availability of raw material
Availability of utilities
Availability of labor

11. The nature of the business is partnership.
Covered Area
The total area, which we want to establish a Flour mill, is 2 acres.
The cost of one acre is 5million. The area required to the machinery
building is 2 kanal.
Human Resource Required
Labor

12. There are three types of the labor are required
Technical Labor
Technical labor is a permanent employee of the factory. 15 to
20 employees are required.
Manager.
Shift In charge.
Washer Man.
Accountant.
Packers..
Supervisors
These are also the permanent employee of the factory.10 to 15
employees are required.
Loaders
Loaders are the contractor employee of the company. 15to20
employees are required.

13. •Flour
•Maida
•Bran

14. •Direct labor will increase every year 20%.
•Administration salaries will be increase 20% per year.
•Selling expense are 5% of sales revenue.
•Depreciation will be constant over the life of assets.
•The economic life of the project would be 10 year.
•The entire capital outlay would be incurred one year prior to the commencement
of commercial operation.
•Motor vehicles, furniture, fixtures, and equipments would be replaced after 10
years.
•Salvage value at the end of the life of the project represents recovery of working
capital original value of land, book value of land and book value of building.

15. As Faisalabad is an agricultural area having two major crops wheat and cotton.
We have made a research and
seek different type of investment opportunities in Faisalabad region. We have
decided to invest the flour mill because there is much potential in this business
and raw material is easily available.
As population is increasing day by day so the demand of flour is increasing
day by day so it is a very profitable project and it will contribute in the
industrial sector of Faisalabad region.
United Flour Mill is a registered firm established with the objective
of providing flour and to fulfill the increasing demand of Faisalabad region.
The mill is intending to starts it operations initially with one plant in Chak 12
Faisalabad. It plans to expand its network latter in others Tehsils of Faisalabad.
Initially United Flour Mill operates at 75% of the capacity. United Flour Mill
will start its operations soon.

22. R (x)=C(x)
200x=150x+1738000
200x-150x=1738000
50x=1738000
x=34760units