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Assumptions
The following table details important financial assumptions.
GENERAL ASSUMPTIONS
YEAR 1

YEAR 2

Current Interest Rate

10.00%

10.00%

10.0

Long-term Interest Rate

10.00%

10.00%

10.0

Tax Rate

30.00%

30.00%

30.0

Plan Month

Other

The best way to find out what may be possible to build in your yard and what it may cost is to
have us visit. We have found, however, that many of our customers benefit from having
realistic expectations before we arrive. The following outlines some basics that will help you
create a wish list and prepare for budgeting before we meet.

The Pool
Naturally, the first cost we should outline is that of the Pool itself!

YEA

A typical 16' x 32' pool with average options (gas heater, lights, salt water) costs
approximately P1,710,000 plus tax.
The shape does not generally affect the price. The size of the pool can affect the price by
approximately $400 per foot of length or width as a general rule. Jameson pools are built
using the highest quality materials and techniques. Pool Equipment options can impact the
price of a pool by up to P450,000.

The Patio
Just as important as the size of the patio is the material selection when

it comes to cost. The minimum patio area associated with a pool is 275 sq.ft., and the
average project we design has 800 sq.ft.. It is not uncommon for larger projects to have
1,200 sq.ft. or more!
Concrete materials range in price from P405 to P630 per sq.ft., with brushed concrete priced
at the low end of the range and patterned concrete options priced toward the upper end.
Typical patios of interlocking stone cost $19 per sq.ft., though differing product choices can
result in a range anywhere from P720 to P1,080 per sq.ft. and beyond.
Natural stone ranges from P1,125 to P2,025 per sq.ft. When using stone products, a
concrete subdeck is often required which a cost that is typically in the range of P112,500 to
P135,000.
Patio coping (the material choice at the edge of the pool) will affect the price as well.
There are many other considerations for backyard projects such as retaining walls and steps
for elevation changes, fireplaces, outdoor kitchens, outdoor washrooms, pergolas, privacy
screens, sprinklers, garden lighting, wood decks and plants to soften and complete the look.

Sample Pool Construction Project

Common Pool Costs
Pool, 16 x 32 pool with
popular options
300 sq.ft. of concrete deck
Gas hook up, pool heater

P1,710,000.00
126,000.00
36,000.00

located at side of house

near meter
Electrical hook up to pool
system
Remove damaged sod
and replace (1,000 sq.ft.
@ P112.50/sq.ft.)
Fence repair (4 sections
removed for access and
reinstalled)
Permit fees (varies by city
and scale of job, assume
Oakville average)
Pool Subtotal

103,500.00
112,500.00

27,000.00

63,000.00
2,178,000.00

Common Project Upgrade Costs

Upgrade to 700 sq.ft.
of interlocking stone
deck @ P855/sq. ft.

P598,500.00

Common Construction Concerns

Gas and Electrical Connections
We arrange and schedule licensed tradespeople to handle these

tasks. There are municipal regulations for placement of pool equipment. When the pool
equipment requires underground lines the costs go up. The gas quote is usually straight
forward but there are regulations as to placement of the heater as well. Electrical hook up is
regulated by the ESA and an electrical permit is taken out as part of the cost. Power for
cabanas can be quoted as well.

Access for Construction

Many projects require using a neighbor's property in order to gain access. It is very important
to talk to them prior to booking a project. A typical job can mean a minimum of 500 passes
for a machine over the access route in various weather conditions. Considerations that can
push up the project costs significantly are: the size of machines that can be brought in,
tree/garden damage or removal, a/c unit or gas meter removal, steel plate protection for
patios, damage to driveway and patios, damage to sprinklers, fence removal, and anything
else that might get in the way or be traversed frequently during construction.

Length of Construction
This is usually the first question asked after we start digging. The typical pool is built in 3 to 5
business days. The landscaping and patios can take from one week to many weeks
depending on the scale of the project. The average pool landscape project takes just 2 to 3
weeks before we are ready to fill your new pool!

Financial aspect
Spatify expects to raise P495,000 of its own capital, and to borrow
P450,000 guaranteed by the SBA as a ten-year loan. This provides the bulk
of the current financing required.

Break-even Analysis
Spatify's Break-even Analysis is based on the average of the firstyear figures for total sales by units, and by operating expenses. These are
presented as per-unit revenue, per-unit cost, and fixed costs. These
conservative assumptions make for a more accurate estimate of real risk.
Spatify should break even by the fourth month of its operation as it
steadily increases its sales.

BREAK-EVEN ANALYSIS
Monthly Units Break-even
Monthly Revenue Break-even

17,2

$38,3

Assumptions:
Average Per-Unit Revenue

$2

Average Per-Unit Variable Cost

$0

Estimated Monthly Fixed Cost

$32,3