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### Cost price calculation

The cost price calculation is separated into two parts: the calculation of the stovetop and the one about the gas delivery:

Stovetop
The stovetop will be bought by Alibaba and then shipped to Kabala, Sierra Leone. There the employees of Atmosierra will assemble the stovetop to a metal framework, which will then be sold to the customers. In addition to the direct material costs, which account to € 13.68, overheads like logistics, rent of office space, labour costs, capital costs and so on have to be taken into account.  The selling price of one stovetop is € 90.- but due to the fact that nobody in Sierra Leone could afford such an expensive product, Atmosierra is offering payment by instalments. The customers will therefore just pay € 2.50 per month for three years. Afterwards the product is completely paid off and the families just have to continue paying for the gas delivery. The gross margin on this product is rather low, as Atmosierra wants to make the product affordable for its customers. As the buyers will not buy the stovetop without subscribing to the weekly gas delivery, Atmosierra will be able to increase its profit with those deliveries, as the gross margin is much higher for this service.

Gas Delivery
Atmosierra picks up the waste from its customers twice a week. When the employees pick up the waste, they also supply the families with gas containers which will then last for the next 3-4 days, after that period they will receive another container full of gas. A family of 6 people (average household size in Sierra Leone) needs approximately 37.5L of compressed gas for one meal, which accounts to a weekly gas consumption of approximately 500L of compressed gas. This means that we will provide the families twice a week with 250L of gas. The price for this amazing service is € 13.- per month, which matches with the people's current spendings on firewood. As the price for wood has been increasing enormously within the last few years, Atmosierra's service will be much cheaper for the people in the long term.

 Stovetop each Year 1 Year 2 Year 3 Year 4 Year 5 supplied households 1,00 300,00 500,00 1.000,00 1.200,00 1.400,00 increase/year 300,00 200,00 500,00 200,00 200,00 Direct Material Costs € 13,68 € 4.104,00 € 2.736,00 € 6.840,00 € 2.736,00 € 2.736,00 + Overheads for Stovetop € 6,93 € 2.078,48 € 2.078,48 € 2.717,72 € 3.996,20 € 5.274,68 + General Overheads incl. Capital Costs € 37,23 € 11.170,00 € 12.682,00 € 27.940,27 € 9.709,72 € 9.725,69 Cost Price/Revenues € 57,84 € 17.352,48 € 17.496,48 € 37.497,99 € 16.441,92 € 17.736,37 + Gross Margin € 32,16 € 32,16 € 2,52 € 15,00 € 7,79 € 1,32 Selling Price € 90,00 € 90,00 € 90,00 € 90,00 € 90,00 € 90,00 Sales 27.000,00 45.000,00 90.000,00 81.000,00 81.000,00 Monthly Fee (first 3 years) € 2,50 Gas Delivery each Year 1 Year 2 Year 3 Year 4 Year 5 supplied households 1,00 300,00 500,00 1.000,00 1.200,00 1.400,00 increase/year 300,00 200,00 500,00 200,00 200,00 Overheads for Gas € 21,95 € 6.583,72 € 7.827,76 € 14.347,80 € 16.872,60 € 19.397,40 + General Overheads incl. Capital Costs € 32,23 € 9.670,00 € 9.682,00 € 9.695,20 € 9.709,72 € 9.725,69 Cost Price € 54,18 € 16.253,72 € 17.509,76 € 24.043,00 € 26.582,32 € 29.123,09 + Gross Margin € 101,82 € 101,82 € 120,98 € 131,96 € 133,85 € 135,20 Selling Price (year) € 156,00 € 156,00 € 156,00 € 156,00 € 156,00 € 156,00 Monthly Fee € 13,00 Revenues € 46.800,00 € 78.000,00 € 156.000,00 € 187.200,00 € 218.400,00 Total Revenues € 73.800,00 € 123.000,00 € 246.000,00 € 268.200,00 € 299.400,00