Explore BrainMass

Explore BrainMass

    PowerPoint Proposal for Production Plant of Suits in Costa Rica

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Your manager explains that you must prepare a presentation for the board of directors discussing the rationale for locating the new production plant for men's business suits in Costa Rica instead of in the United States.

    Design a PowerPoint in which you address the major reasons behind the Costa Rican strategy. For full credit, you must address and use the following salient points in your presentation:

    - The Costa Rican government will waive property taxes on the manufacturing plant for 15 years.
    - Costa Rica has a political and economic climate that is friendly to U.S. business.
    - Shipping products from Costa Rica is greatly aided by the country's modern infrastructure and use of the English language.
    - Costa Rica has a long-standing, 150-year-old democratic government.
    - The cost of labor is 35.33% of the prevailing U.S. labor rate.
    - Estimates of operating income and expenses are attached within the Pro Forma Income Statement below.

    Pro Forma Income Statement: Costa Rica Manufacturing Plant

    - All revenues and expenses stated in U.S. currency:
    Net Sales : $5,000,000
    Cost of Goods Sold : $3,500,000
    Gross Profits : $1,500,000
    Operating Expenses:
    Sales and XX Expenses : $250,000
    General and Administration : $350,000
    Depreciation : $150,000
    $750,000
    Operating Income: $750,000
    Interest Expense: $50,000
    Before Tax Income: $700,000
    Income Tax (40%): $280,000
    Net Income: $420,000

    © BrainMass Inc. brainmass.com June 4, 2020, 3:24 am ad1c9bdddf
    https://brainmass.com/business/business-management/513400
    $2.19

    ADVERTISEMENT