Contents
Feasibility Analysis of NPS Company....................................................................................................... 2
1.Product/ Service Feasibility.............................................................................................................. 2
Product/Service Desirability............................................................................................................ 2
Product/ Service Demand ................................................................................................................ 3
2. Industry/Target Market Feasibility ................................................................................................. 4
Industry Attractiveness ................................................................................................................... 4
ii. Target Market Attractiveness ..................................................................................................... 4
3. Organizational Feasibility ................................................................................................................ 5
4. Financial Feasibility Analysis ......................................................................................................... 12
Overall Financial Attractiveness of the Proposed Venture .......................................................... 14
Ratio Analysis ................................................................................................................................ 17
Overall Conclusion ............................................................................................................................ 20
Feasibility Analysis of NPS Company
Feasibility analysis is the process of evaluating the future of a project idea within the
limitations of project implementing it in a practical way. In other words, feasibility analysis is
the process of determining if a business idea is viable. The feasibility is an iterative process
covering all aspects of an investment project such as possible alternative solutions for
production programmes, locations, technology, organizational setup, etc. Feasibility analysis
mainly covers following aspects:




Product/Service feasibility
Industrial/Target market feasibility
Organizational feasibility
Financial feasibility
Product/ Service Feasibility
It is an assessment of the overall appeal of the product or service being proposed. The
evaluation of a new venture idea should start with identifying the technical requirements,
the technical feasibility, for producing a product or service that will satisfy the expectation
of potential customers. Its components can be listed below as follows:
Product/Service Desirability
The first component of product/service feasibility is to confirm that the proposed product or
service is desirable and serves a need in the market place. Product/service desirability can
be assessed with the help of concept test. It includes the following:
i)
Description of the Product/Service
Vending machines are the machines that dispense items such as alcohol, beverages,
chocolates, cologre, consumer products and even gold and gems when the customer inserts
coin, currency or credit cards in the machine.
ii)
Intended Target Market
Since different products such as chocolates, gumballs, candies, alcohol, beverages, lottery
tickets, cologres, and even gold and gems are available in vending machine so, it’s target
market can be of different ages as well as gender. As chocolates, gumballs are preferred by
children. Similarly Alcohol and beverages are preferred by young generation people
whereas old/aged people prefer lottery tickets.
Vending machines should be installed in places where there is the movement of large
number of people. The places can be specially commercialized places such as parks,
restaurants, hotels, departmental stores, malls etc.
Places of installing vending machines






iii)
Kathmandu
Bhaktapur
Lalitpur
Pokhara
Biratnagar
Birgung and soon
Benefits of Vending Machine
Since, needed item such as drinks, ice-cream, chocolate bars, alcohol, beverages are
available in a single machine it will take less time and effort. When the consumer presses
the button for the things we need in less time we can have which saves our time as well as
effort. Since, the price of the items that are available in vending machine is fixed so; there is
less chance for people being cheated. Vending machine is easy to operate as it can be easily
operated if we know how to use it. So, the instructions regarding its use can be shown with
the help of visual graphics that can be attached with the machine. The people can get the
knowledge regarding the use of vending machine as it can be both shown in English as well
as Nepali language for the convenience of customers.
iv)
Company’s Position
Our product is new to the market of “Nepal”. Since, it is unique to the market there are no
competitors till now. However, it can be believed we will develop new competitors in long
run for which we will modify the existing service and concept like by adding new products,
new payment methods etc to achieve competitive advantage in the market.
Product/ Service Demand
It is the second component of product/service feasibility analysis which helps to determine
the demand for the product or services. There are two techniques for making this
determination: Administering a buying intention survey and conducting library, internet and
gumshoe research.
(i)
Buying Intention Survey
We have conducted survey in some areas of Kathmandu valley where we found number of
people were in favour of our product because they though the product to very useful as it
provides them with variety of product in less time and effort. About 85% people liked our
concept whereas remaining 15% people complained the possibility of some difficulties in
operation.
(ii)
Library, Research, and Internet
The concept of vending machine in Nepal emerged in between us by with the help of
market research and internet surfing. Vending machines are widely used in the foreign
countries but not in Nepal. From the market survey, we came to know that people are
willing to accept our product because of their increasing purchasing capacity and busy
schedules.
2. Industry/Target Market Feasibility
Industry feasibility is an insight into the appropriateness of selecting an industry to carry out
the new venture. A target market feasibility study tells if a product or services is will be
successful in the target market. Industry/target market feasibility explains about the industry
and market, existing opportunities, and threats from the environment.
Vending machine is a new emerging concept that can be used in both summer as well as
winter seasons. Vending machine is easy, convenient as well as easily accessible instrument
as customer can consume any product as per their preference in a very short time without the
need of visiting various shops. There is a wide range of products in a single vendor such as
chocolates, cakes, coffee, cold drinks, liquors, beverages and many more.
The first reference to using vending machine was brought by the hero of Alexandria, a
century engineer and mathematician. His machine accepted coins and dispensed holy water.
The coin deposited in the machine got collected in the pan attached to a lever. The lever
opened a valve and dispensed holy water. The first modern coined vending machine got
started in London, England in the early 1880s that dispensed post cards. In 1888 the Thomas
Adam’s gum company introduced the very first vending machine to the United States. A
completely coin-operated restaurant called Horn and Hardart was opened in 1902 and stayed
opened until 1962 in Philadelphia. Moreover, an American inventor named William Rowe
invented a cigarette vending machine.
i. Industry Attractiveness
Vending machine is a new concept in a developing country like Nepal which is in early
phase. It is in fragmented state rather than concentrated state because this vending machine is
portable which can be used in various commercialized places such as Kathmandu, Bhaktapur,
Pokhara, Lalitpur, Biratnagar etc. It is in growing state because this machine is new to Nepal
as it is a new system that provides varieties of items in a single vending.
Vending machine is an emerging concept that helps to save human effort, time because by the
use of this machine a particular person need not to visit various shops which saves his time
also it saves peoples effort as they can simply press a button and get the required things from
the machine.
ii. Target Market Attractiveness
Since vending machine is a very new concept so customers are unaware about vending
machine in the initial phase. But we initiate promotion and publicity not only through
words of mouth but also through various promotional tools such as advertisement,
public relation and publicity so that people become aware about vending machine and
its use .In a developing country like Nepal all people are not literate so it’s a bigger
challenge for us to make people know about the use of vending machine so, our
creative team decided to add a visual graphics in both Nepali as well as English
language for their convenience.
The current market trend of Nepal for the use of vending machine is not widely acceptable or
use as people don’t have the habit of using such machine where varieties of items(products)
such as beverages, cold drinks, junk foods, chocolates and so on. After the installation of
vending machine we get to know that in a day average of 100 people use the vending
machine where more than 70 people are young generation people also around 5-10 people are
aged people and 10-20 people are children who use vending machine to get chocolates and
soon. This kind of concept is a market creator which is unique business model in Nepal so we
have monopoly over market share.
3. Organizational Feasibility
An organizational feasibility study may include professional background such as details of
the hierarchal structure, the authority-responsibility relationship, communication pattern,
organization structure and its implication, job analysis and measurement etc. In this report,
organization structure, functions, powers, duties and responsibility of various committees are
discussed.
Organizational Structure: On the top of the organization lies a chief executive officer
(CEO) who undertakes the position as the head administrator and is responsible for making
all long term financial, organizational, or any related product decision.
CEO
Human
Resource
Manager
R and D
Manager
Marketing
Manager
Financial
Manger
Duties and Responsibilities
The Duties and Responsibilities of NPS Company can be listed below as follows:
CEO
The CEO is responsible for all day-to-day management decisions and for implementing the
company’s long and short term plans.

Formulating strategic business plan.

Creating hierarchy and delegating the responsibilities to lower level staffs.

Formulating policies for business decision making.

Increasing effectiveness of management by recruiting, selecting, motivating as well as
counselling.

Using effective reward technique for better performance of the employees.
Research and Development Manager
R and D managers are responsible to investigate activities a business conducts to improve
existing products and procedures to lead to the development of new products.

Determine and execute improved technologies used by suppliers, competitors and
customers.

Support Director to hire and develop R and D personnel.

Establish project goals and priorities by collaborating with marketing and operations.

Research, design and evaluate materials, procedures and equipment.

Monitor team metrics and objectives ensuring meeting of goals.

Investigate new technologies and novel biomarkers.
Human Resource Manager
HR manager plan, direct, and coordinate the administrative functions of an organization.
They serve as a link between an organization’s management and its employees as well as
consult with top executives on strategic planning.

Identifies hiring need, develops the position description, recruitment plan,
organizational chart and other recruitment related documents.



Reviews position description and assigns the job classification
Ensures accurate and complete recruitment and selection guidelines and procedures.
Reviews applications, participates in the interview process and recommends final
applicant.

Plan and conduct new employees’ orientation to foster positive attitude towards
organizational objective.

Perform difficult staffing duties, including dealing with understaffing, referring disputes,
firing employees, and administering disciplinary procedures.
Marketing Manager
A marketing manager is a person within a company who supervise and helps to create the
various advertising or merchandising sales campaigns the business uses to sell itself and its
products. A marketing manager can be assigned to a single product, a product line, a brand,
or the entire company.





Development of brand.
Identify potential markets.
Oversee new product introductions
Develop pricing strategies.
Supervise people.
Financial Manager
Financial managers are responsible for the financial health of an organization. They produce
financial reports, direct investment activities, and develop strategies and plans for the longterm financial goals reports, direct investment activities, and develop strategies and plans for
the long-term financial goals of their organization.

Perform financial analysis, reporting and management activities.

Ensure that the financial reports are prepared and delivered on time.

Review financial data for accuracy, correctness and completeness.

Monitor and manage all expenses within the allotted budget.

Assist in account payable and receivable activities.

Generate financial reports related to budgets, account payables, account receivables,
expenses etc.
Communication Pattern
In our vending machine, we will be using two-way communication pattern as our company
has planned to put a feedback box next to the vending machine. Two-way communication
helps us to know about the queries of customers what goods/products customers prefer more.
Also it helps us to know the opinions of top level to lower level.
C.V. of CEO
Personal Details
Name: Pratap Shrestha
Address: Kalimati, Kathmandu
Fathers Name: Krishna sundar Shrestha
Mothers Name: Laxmi Shrestha
Contact No.: 9860925785
Date of Birth: 1991/04/16
Email: Pratap.shrestha11@gmail.com
Nationality: Nepali
Marital Status: Bachelor
Languages spoken: Nepali, English, Newari, Hindi
Academic Qualifications
S.N.
Level
1.
S.L.C
Board
2.
Govt.
Nepal
+2(Management) HSEB
3.
BBA
TU
4.
MBA
HU
Institution
Of Paramount. E. M.
S. B. school
Kathmandu
Bernhardt collage
Shankar
Dev
Campus
Oxford
University
Division
Distinction
(80.25%)
Distinction
(80%)
Distinction
(3.70)
Distinction
(3.70)
Passed
Year
2005
2007
2011
2013
Experience



Supervisor in S and P Company for 2 years.
Assistant manager at unique corporation for 1 and half year.
2 years accountant experience at Shrestha Glass Center.
Training

Participated in various workshops regarding International business challenges and
prospects.

Training on C++ programming on ICC institute.

Training for IT programs and web page designing.
Achievements and scholarship



Awarded as the most discipline student in collage.
Nominated to ambassador for Newari culture in Foreign country.
Awarded for man of the match in inter-collage cricket cup two times.
References


Mr. Ram Shrestha, M.D. Shrestha Glass Udhyog
Mr. Lal Prasad Aryal, Lecturer Shanker Dev campus
C.V. of R and D Manager
Personal Details
Name: Sushant Regmi
Address: Balaju, Kathmandu
Fathers Name: Subindra Regmi
Mothers Name: Parbati Regmi
Contact No.: 9843326490
Date of Birth: 1992/11/11
Email: Ssushant_regmi25@gmail.com
Nationality: Nepali
Marital Status: Bachelor
Languages spoken: Nepali, English, Hindi
Academic Qualifications
S.N.
1.
Level
S.L.C
Board
Govt.
Nepal
2.
+2(Mgmt)
HSEB
3.
BBA
TU
4.
MBA
HU
Institution
Of Siddhartha
vanasthali
Institute
Prasadi
college
Shanker Dev
Campus
Division
Distinction
(82%)
Passed Year
2006
Distinction
(78%)
Distinction
(3.71)
2008
Oxford
University
Distinction
(3.70)
2014
2012
Experience
 2 years of experience with strong environmental awareness, excellent writing skills, and the
ability to find innovative solutions.
 Over 1 and half year of experience in training development and delivery, motivation, and
team building.
Training



Training on development skills especially for Social research.
1 year course on understanding consumer behaviour and their consumption pattern.
Training on accounting and java programming from pyramid institute.
References


Mr. Bharat raj Upretty, General manager Aarati Corporation.
Mr. Lal Prasad Aryal, Faculty member Shanker Dev campus.
C.V. of Human Resource Manager
Personal Details
Name: Nitesh Thapa
Address: Gongabu, Kathmandu
Fathers Name: Pushpa Raj Thapa
Mothers Name: Yam Kumari Thapa
Contact No.: 9843365111
Date of Birth: 1992/06/11
Email: Kneetes@gmail.com
Nationality: Nepali
Marital Status: Bachelor
Languages spoken: Nepali, English, Hindi
Academic Qualification
S.N.
1.
Level
S.L.C
Passed Year
2006
+2(Management)
Board
Institution
Govt. Of Sainik school
Nepal
HSEB
Sainik college
2.
Division
Distinction
(81%)
Distinction
(78%)
Shanker
Dev Distinction
Campus
(3.71)
Harvard University Distinction
(3.70)
3.
BBA
TU
2012
4.
MBA
HU
2008
2014
Experience
 2 strong years of experience in supply chain improvement, purchasing inventories, supply
chain analysis etc.
 6 months leadership training program in abroad company.
Training


Training on various communication skills.
Training on Events management on various workshops.
References


Mr. Dhurba Subedi, Lecturer Shankar Dev Campus
Mr. Lal Prasad Aryal, Faculty member Shankar Dev campus
C.V. of Marketing Manager
Personal Details
Name: Sujal Shrestha
Address: Kirtipur, Kathmandu
Fathers Name: Bishnu gopal Shrestha
Mothers Name: Apana Shrestha
Contact No.: 9860576256
Date of Birth: 1991/01/25
Email: sthasujal25@gmail.com
Nationality: Nepali
Marital Status: Bachelor
Languages Spoken: Nepali, English, Newari, Hindi
Academic Qualifications
S.N.
1.
Level
S.L.C
Board
Govt.
Nepal
2.
+2(Management)
HSEB
3.
BBA
TU
4.
MBA
HU
Institution
Division
Of Shree shanti varsa Distinction
secondary school
(85%)
Everest
multiple
college
Nepal commerce
campus
Harvard University
Distinction
(82%)
Distinction
(3.80)
Distinction
(3.70)
Passed Year
2005
2007
2011
2013
Experience
 1 year of experience in cooperatives.
 Supervisor of marketing department in Accessories Nepal, Kathmandu
Training

Diploma in computer ( MS-WORD 2007, MS-Excel 2007, MS-PowerPoint 2007,
Adobe Page Maker 7.5) from Levis computer Institute.

Language class from Sagarmatha Institute.
References


Mr. Dhurba subedi, Lecturer Shanker Dev Campus
Mr. Lal Prasad Aryal, Faculty member Shankar Dev campus
4. Financial Feasibility Analysis
Financial feasibility is the assessment of the financial aspects of a proposed venture to decide
whether it is financially viable or not. The purpose of financial analysis is to identify the
characteristics and to determine the financial feasibility of a project.
The significance of financial feasibility is considered important as to start any sort of business
venture, one should have enough capital to start as well as run the business. The most
important issues to consider at this stage are total start-up cash needed, financial performance
of similar businesses, and the overall financial attractiveness of the proposed venture.
I.
Total Start-up Cash Needed
The total cash needed for starting our company is ... Since our company is a partnership
venture registration is a must. Under Partnership Act 2020, the following things are the
significant points which can be listed below as:
Agency: Department of commerce
Application fee: Rs.150
Maximum processing time: 1 day
Status: Partnership act, 2020, section 5 to 9
Validity: 4 years
Requirements





a.





b.
Application form
Passport size photographs(2) of all the partners
Citizenship certificate of all the partners
Agreement letter between partners
Tax registration certificate
Cost of Production and Financing
Legal fee : Rs. 40,000
Cost of survey : Rs.25,000
Advertisement expenses: website design :Rs.1,50,000
Other official expenses : Rs.60,000
Documents Registration Charge:Rs.40,000
Cost of Fixed Assets
The Assets which are purchased for long term use and are not likely to be converted into cash
are fixed assets.

Cost of Tangible Assets
S.N.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
c.
Particulars
Chips
Cold drinks
Liquor/Beverages
Chocolate bars
Lottery tickets
Ice-Creams
Cookies
Donuts
Noodles
Candies
Water bottles
Display card
Size/Quantity
25 pkts.
20 pcs
15 pcs
25 pkts
10 pcs
20 pcs
12 pkts.
15 pcs.
20 pkts
25 pkts
20 pcs
6 pcs
Amount
25,000
40,000
45,000
10,000
5,000
30,000
12,000
8,000
5,000
7,000
10,000
55,000
Cost of Current Assets
The asset which is purchased for short term use i.e. within one year and can be easily
converted into cash is current assets.
Cash and bank balance
Inventory
Debtors
6,00,000
30,000
4,00,000
Prepaid expenses
5,50,000
d.
Cost of Developing Business
It includes contingency expenditure which is separated for potential future event that may
occur in the future time.
Contingency Expenditure
2,00,000
3. Overall Financial Attractiveness of the Proposed Venture
The financial attractiveness of a company can be determined by preparing proposed financial
statements which include income statement, Balance sheet, Ratio Analysis, and Cash Flow
statement.
i.
Trading Account
Trading account refers to funds or securities deposited with a financial institution or broker
for the purpose of speculation. It is usually overseen by an investment dealer, fund manager
or personal trader.
Trading Account of NPS Company
As on 31st Asadh, 2074
Particulars
To Purchase
ii.
Amount
6,6,0000
To Carriage inwards
To
Carriage
outwards
To power and fuel
Gross Profit
60,000
70,000
2,00,000
9,90,000
Total
25,45,275
Particulars
Sales(3557
units
Amount
20,45,275
@575 each)
Closing stock
5,00,000
Total
25,45,275
Profit and Loss Account
Profit and loss account is prepared so as to record all the sources of income and expenditure.
This account includes all the expenses that occur within the office territory. The Profit and
loss account of NPS is shown below:
Profit And Loss Account of NPS Company
As on 31st Asadh, 2074
Particulars
To salary
To stationery and printing
To insurance premium
To repairs and maintenance
To registration charge
To depreciation
To advertisement
To contingency expenses
To rent of building
To legal charges
To utilities
To selling and distribution expenses
To interest expenses
To cost of survey
To discount allowed
To tax paid
To net profit
Total
iii.
Amount
1,50,000
15,000
1,50,000
40,000
40,000
30,000
1,20,000
1,00,000
4,00,000
40,000
45,000
60,000
1,00,000
40,000
90,000
60,000
6,90,000
21,70,000
Particulars
By gross profit b/d
By discount received
By commission received
Amount
20,20,000
50,000
1,00,000
Total
21,70,000
Balance Sheet
Balance sheet is the financial statement of a company which includes assets, liabilities, equity
capital, and total debt, etc at a point in time. It includes assets on one side and liabilities on
the other. It is more like a snapshot of the financial position of a company at a specified time,
usually calculated after every quarter, six months or one year.
Balance Sheet of NPS Company
As on 31st Asadh, 2074
Capital
Share capital
Amount
7,00,000
Assets
Machinery and equipment
Amount
1,40,000
Bank loan
Accounts payable
Outstanding expenses
Net profit
5,00,000
Furniture
Cash on hand
Cash at bank
1,50,000
2,00,000
3,00,000
4,40,000
20,000
5,00,000
5,00,000
22,50,000
Total
3,00,000
60,000
6,90,000
22,50,000
Accounts receivable
Inventory
Prepaid expenses
Closing stock
Total
iv.
Cash Flow Statement
It refers to a financial statement that shows how changes in balance sheet accounts and
income affect cash and cash equivalents and breaks the analysis down to operating, investing
and financing activities. The cash flow statement is concerned with the flow of cash in and
out of the business.
Cash Flow Statement of NPS Company
As on 31st Asadh, 2074
Particulars
Amount
1.Cash flow from operating activities
A. Cash sales and received from debtors
Sales
20,45,275
Receivable
-4,40,000
Discount allowed
-90,000
B. Cash paid and payment to creditors
Purchase
-6,60,000
Payable
3,00,000
Discount received
50,000
C. Cash paid to employees and other operating
activities
Salary
-1,50,000
Rent
-4,00,000
Increase in o/s expenses
60,000
Increase in prepaid expenses
-5,00,000
Utilities expenses
-45,000
Cost of survey
-40,000
Legal fees
-40,000
Registration charge
-40,000
Contingent expenses
-1,00,000
Stationery and printing
-15,000
Selling and distribution cost
-60,000
Repairs and maintenance
-40,000
Insurance paid
-1,50,000
Carriage inward
-60,000
Carriage outward
-70,000
Commission received
1,00,000
Advertisement expense
-1,20,000
D. Payment of tax and interest
Tax paid
-60,000
Interest paid
-1,00,000
Net cash flow from operating activities(A+B+C+D)
2. Cash flow from investing activities
Machine and equipment
-1,40,000
Furniture
-1,50,000
Net cash flow from investing activities
Amount
15,15,275
-3,10,000
-16,70,000
-1,60,000
-6,24,725
-2,90,000
3. Cash flow from financing activities
Capital
Loan
Net cash flow from financing activities
Net cash flow and cash equivalent (1+2+3)
Add: Opening cash and bank balance
Closing balance
7,00,000
5,00,000
12,00,000
2,85,275
5,00,000
7,85,275
Ratio Analysis
Ratio analysis is used to evaluate various aspects of a company’s operating and financial
performance such as its efficiencies, liquidity, profitability and solvency.
i.
Current Ratio
The current ratio measures the ability of a company to pay its current liabilities with its
current assets. It can be calculated as follows:
Current ratio = Total current assets/ total current liabilities
= (cash in hand + cash at bank+ account receivable)/ (account payable +
outstanding expenses)
= (200000+300000+440000)/(300000+60000)
= 2.61
Therefore, current ratio of 2.1 means that the company has 2.61 times more current assets
than current liabilities.
ii.
Equity Ratio
This ratio can be gained when total equity of the company is divided by total assets of a
particular company.
.
Equity ratio= Total equity/ Total assets
= 700000/1750000
= 0.40
Therefore, equity ratio of 0.40 means that the company’s equity is 0.4 times greater than its
assets.
iii.
Debt to Equity Ratio
The debt to equity ratio shows that the percentage of company financing that comes from
creditors and investors.
Debt to equity ratio = long term debts/ Total equity
= 800000/700000
= 11.42%
Therefore, debt to equity ratio of 11.42% means that liabilities are 11.42% of stockholders
equity.
iv.
Inventory Turnover Ratio
The inventory turnover ratio measures how effectively inventory is managed by comparing
cost of goods sold with average inventory for a certain period.
Inventory turnover ratio = Sales/Closing stock
= 2045275/500000
= 4.091 times
Therefore, inventory turnover ratio of 4.09 means that the company sold its products 4.09
times over the year.
v.
Assets Turnover Ratio
The asset turnover ratio is an efficiency ratio that measures a company’s ability to
generate sales with average total assets.
Asset turnover ratio= Net sales/ average total assets
= 2045275/ (1750000/2)
= 2.34 times
Asset turnover ratio of 2.34 means that the company generates Rs 2.34 in every 1 rupees
invested in assets.
vi.
Profit Margin or Return on Sales
Profit margin is a profitability ratio that measures the amount of net income earned with
each rupee of sales generated by comparing the net income of the company.
Profit margin = Net income / Net sales
= 690000/2045275
= 0.337 or 33.74%
Therefore, profit margin of 0.337 means that a company earned 33.7% profit out of total
sales.
a.
Breakeven point (BEP) Analysis of NPS
BEP analysis is a calculation of the point at which revenues of a company equals its
expenses.
I.E. Revenue = Expenses.
i.
BEP Sales in Units = Fixed cost/ Unit selling price – Unit variable cost
= 390000/ (575-92.77)
= 809 units
Note: fixed cost= (interest+ furniture + machinery)
Unit variable cost= (power and fuel + carriage inward + carriage outward +
manufacturing exp.)/sales units
ii.
BEP Sales in Rupees = BEP sales in units * selling price per unit
=809*575
=Rs. 4,65,175
iii.
P/V Ratio = 1- (v/s)
= 1-(92.77/575)
= 0.839
iv.
cost)
Cash BEP in Units = Fixed cost –Depreciation/(Unit Selling price– Unit variable
= (390000-30000)/ (575-92.77)
= 747 units
Overall Conclusion
Vending machine refers to those machines that dispense items such as chocolates, beverages,
alcohol, chips items, etc. when the customer inserts coins, currencies or credit cards. The
concept of vending machine in Nepalese market is completely new so for the better
convenience of the customers, our company has decided to attach the visual graphics that
depicts the instructions in the screen which helps the customers to use the machine. Since it is
in the introduction phase our company has decided to use various promotional tools such as
advertisement, sales promotion as well as public relation and publicity.
After studying and analysing the market trend, we came to the conclusion that there are
various needs and preferences as per the age groups. The financial statement of NPS
Company shows that its financial position is strong. Our financial statements such as trading
account, profit and loss account and balance sheet shows that company can do well in the
market gaining a profit and covering market in a very short period of time. Also analysing the
ratio analysis and BEP analysis techniques the sales of a company exceeds expenses.