A feasibility study on what\u27s up rack?

B.I.M.O.H.R. Corporation is a profit organization formed by six incorporators to manufacture and sell What\u27s up rack?. It is a 38 X 10 inches CD rack designed to be hanged on the wall. What\u27s up rack? is made out of wood and abaca rope wherein the cut wood looks like a series of polygons put together in one column. The abaca rope on the other hand, will be used for weaving the CD holder. This feasibility study was conducted by the proponents to determine the feasibility of manufacturing and selling What\u27s Up Rack?. The proponents used random sampling in gathering information from 280 respondents. The respondents are limited to students of Assumption Antipolo, residents of San Miguel and Navy Village. Results of the survey showed that there is a demand of 73 units per month for CD racks and that B.I.M.O.H.R. Corporation has a 44% market share. What\u27s Up Rack? will be sold at P 420.00 per unit which will yield to a contribution margin of 51%. For the mean time, the proponents will employ personal selling and participation in Practicum bazaars as distribution strategies. Consignment will be considered by the proponents as another distribution strategy in the future. Based on the time and motion study done by the proponents, assembly line is the best method in producing What\u27s Up Rack?. Using this method, the proponents can produce units of What\u27s Up Rack? per production day and 32 units in a month. The proponents have projected a net income of P 40,986.70 after ten months of operations. Based on this projection, return on equity and return on investment were computed as 2.27 or 227%