Question

• Select a business idea carefully (preferably in engineering field) that you can collect the following information about it:
• Write a short paragraph about the business in terms of location, product(s), services to make the business identifiable. • Estimate the annual revenues • Estimate the capital cost Estimate the Running cost
Note: collecting this information from the actual sources to assure logical results in the evaluation analysis

Answer 1

Answer : Business of Combine production and distribution will be more preferable. Combine is the machine which is used in harvesting and threshing in agricultural process. Making of this machines is engineering process. The business unit will be setup in centre of state from where all places have equal distance. This will be incurring low transportation cost. Business of this field will be flourishing as combine is essential for all agricultural process hence it is necessary for agriculture.

Annual revenue of this business will be $2.5 million and Annual cost will be $1.3 million it includes $0.8 million capital cost and $0.5 million running cost. In addition to production unit if business will set up services and repair unit then it will yielding $1.5 million of revenue with Annual cost $0.45 million including running and Capital cost in ratio 1:3. As there is 1-2 units in that particular area. Hence this unit with business can help increase more revenue hence increase more profits. This business organisation can help in yielding maximum profits as goods and services that provided by business organisation is essential part of agriculture that will be availed by people engaged in agriculture sector every year.

Hence above was the report of business organisation that will be setup for production of combine machines with its service and repair unit.