A PROJECT REPORT ON
SUBMITTED BY MFM FIRST YEAR
Batch I - II
Group Members Roll No.
Mr. Vimal Ghudka 31
Mr. Sanil Chorge 13
Mr. Shrikant Hire 36
Mr. Dipesh kumbhar 56
Mr. Amol Nagmal 63
Mr. Ajinkya Devale 19
Submitted to
Prof. Sardesai
LIST OF CONTENTS
Sr. No. Particulars Page No.
1 ACKNOWLEDGMENT 1
2 Introduction to Costing 2-4
3 Direct Material Cost 5
4 Labour Cost 6
5 Overheads Cost 7
6 Profit 8
7 History Of Brand Corelle 9-14
8 M/S Sachin Enterprises 15-19
9 Cost Sheet For Sachin Entereprises 20-21
10 Break Even and Marginal Costing 22-23
11 Conclusion 24
ACKNOWLEDGMENT
We would like to thank the Owner and Proprietor MR. Bipin C.
Karania at M/S Sachin Enterprises for helping us in completing
the project and giving out confidential information about the
cost incurred by them for carrying on Distributorship.
We would also like to thank Prof. Serdesai for giving us an
opportunity on working on such a project.
COSTING
COST in accounting means expenses. It is the price paid for attaining the
objective. For understanding, the term of costs needs an analysis of
expenses or expenditure.
Costing is ascertainment of costs. It is different from cost accounting. It
is referred to as classifying, recording and appropriate allocation of
expenditure for determination of the costs of the products or services.
Costing is a process of ascertaining costs. It consists of rules and
principles of ascertainment of costs of a product or service.
Cost can be classified as
1. Direct Cost.
2. Indirect Cost
1. DIRECT COST
Direct Cost is a cost that can be directly traced to producing
specific goods or services.
For example, the cost of product can be attributed directly to
the cost of manufacturing that product. Other costs, such as
depreciation or administrative expenses, are more difficult to assign
to a specific product, and so are not considered direct costs. Another
example can be, the wages of an employee engaged in producing a
product can be attributed directly to the cost of manufacturing that
product.
Therefore Direct Cost can be classified in three elements.
1. Direct Material
2. Direct Labour
3. Direct Expenses
1. INDIRECT COST:
A cost that is not directly related to the production of a specific
Good or service but that is indirectly related to a variety of goods or
services. For example, the cost of administering a large firm is an
indirect cost that must be spread over a number of products or services.
It is also as called overhead.
It is that portion of total cost, which can't be identified and charged
directly to the product. It has to be allocated, apportioned and absorbed
over the unit’s manufactured on a suitable basis. It consists of following
three elements:
1. Indirect Material
2. Indirect Labour
3. Indirect Expenses
DIRECT MATERIALS COST
Direct material cost is that component of a product that has not yet been
placed into the product or into work in process inventory. This account
contains the cost or the standard cost (depending on the cost accounting
system) of the direct materials on hand. A manufacturer must disclose in
its financial statements the cost of materials on hand as well as its cost of
work in process and finished goods.
In the case of crockery, the Inventory would be the finished product
from the company & their computation would be given as:
= Fixed Cost + Variable Cost
= Cost of Material + (Carrying Cost + Ordering cost)
LABOUR COSTS
Total labour costs are the sum of wages and salaries paid by an employer
to an employee, plus any other costs incurred by the employer. As well
as wages and salaries, total labour costs include employer's social
contributions (including national insurance, contributions and pensions,
paid on behalf of the employee) and other non-wage costs including
sickness, maternity and paternity costs, vocational training costs,
recruitment costs and benefits in kind. The latter include company cars,
mobile phones and accommodation.
In our case, Labour costs include the costs of salesman and service by
the workers. Also included are Social Security taxes, retirement and
other benefits such as health or life insurance. To determine labour costs
per hour, keep a time log. When placing a value on your time, consider
the following:
? Your skill and reputation
? Wages paid by employers for similar skills
? Location of Stay
Other pricing factors include image, inflation, supply and demand, and
competition. In case of distributorship, the remuneration given to the
salesman would contribute majorly as the labour costs.
OVERHEAD COSTS
Overhead costs may be variable or fixed expenses that must be covered
to stay in business. Variable costs are those expenses that fluctuate
including vehicle expenses, rental expenses, utility bills and supplies.
Fixed costs include the purchase of equipment and service ware. After
overhead costs are determined, the total overhead costs are divided
among the total number of catering jobs expected.
In our case, the overhead costs would involve the following:
? Cost incurred towards the Delivery boy
? Cost of Packaging
? Rent and Electricity
? Also includes expenditure made on Storing.
PROFIT
It is a desired percentage added to ones total costs. You will need to
determine the percentage of profit added to each crockery item. In our
case determining a price is not easy. There is no one exact price. The
price is based on the type of order we received, special services offered
and your competition.
To operate a profitable Wholesale business, there is a need to decide on
a price that is appropriate for the services rendered. Determining the
costs of storing and transportation expenses and earning profits.
Distributers price their services using different methods. The pricing
formula that covers the costs and provides a profit is as follows:
Materials + Labour + Overheads + Profit = Price
Therefore, in case of Crockery distribution the cost will include the
following components:
-The Materials would include the Cost finished product by company.
-The Selling cost would include the cost of salesman, delivery boy.
-The Overheads would include the cost of storage and maintenance.
HISTORY OF BRAND CORELLE
More than 40 years ago, R&D scientists at Corning Glass Works
developed a special hub lamination process that thermally bonds
three layers of glass—a core centre surrounded by top and bottom
layers of “skin” or “glaze” glass. The glass was decorated using
unique enamels that actually became a part of the glass, creating
durable, scratch-resistant designs. The result? Corelle glass
dinnerware, today known worldwide for its legendary strength and
durability.
First introduced to consumers in 1970, Corelle was the first brand
of glass dinnerware to meet a variety of consumer demands
through features that included Dishwasher and oven safe Break-,
chip-, and fade-resistant under normal use Lightweight, yet durable
Easy to clean Affordable, yet attractive at the same time, Corelle
offered two revolutionary guarantees to consumers. First, the brand
promised to replace any dinnerware that broke, chipped, stained or
cracked within the first two years of normal use, without requiring
proof of purchase. Second, Corelle® committed to pattern
continuity—a feature extremely important to consumers. Even
today, Corelle tests and refreshes its design portfolio based on
extensive consumer research.
During its first decade, Corelle glass dinnerware was virtually sold
out even before it was made. Within 18 months after Corelle was
first placed on sale, more than 40 million pieces had been sold – an
unprecedented record.
Today it is estimated that nearly half of all households have
Corelle break- and chip-resistant dinnerware in their kitchens.
PHILOSOPHY
Corelle glass dinnerware is designed to make an impact and take
one. Our patterns are inspired by the latest trends in fashion and
home décor, delivering a variety of styles that will make a
statement in any household. Every piece of Corelle glass
dinnerware is break- and chip-resistant, making it perfect for
everyday dining and entertaining… proving once again that
beauty can be tough.
CORNINGWARE CORELLE
The Corningware Corelle & more stores are the retail operations of
World Kitchen, LLC in the United States and World Kitchen
manufactures and/or markets well-known brands including
CorningWare, Pyrex, Corelle, Revere, EKCO, Baker's Secret,
Magnalite, Chicago Cutlery, Visions, Snapware and OLFA.
Corningware Corelle & more stores carry all World Kitchen brands as
well as a wide selection of Corelle Accessories, flatware, glassware and
other kitchen essential products.
The first retail store opened Flemington, NJ in 1981. Our Stores are
located in outlet centers across North America with over 80 stores
operating in the United States and 5 in Canada.
BRANDS
FEATURES & BENEFITS
Everybody has their own sense of style. Which is why we offer our
Corelle dinnerware in so many different patterns and shapes. But one
thing everybody agrees on is durability. Dinnerware needs to last. We
use a unique material called Vitrelle, which gives our plates and bowls
that legendary Corelle durability. It also gives them a number of other
benefits that other brands can't offer.
Break & Chip Resistant
Microwave Safe
Oven Safe to 350 degrees
Easy to clean & Dishwasher Safe
Stackable & Space Saving
Lightweight
Made in USA
Sachin Enterprises
Sachin Enterprises deals with distributorship of crockery ware and is in the market
from the last 10years. The various brands for which Sachin Enterprises deals with
are as follows.
? Corelle
? Curver
? Mag-Lite
? Victorinox
? Apex
? ServeWell
? Solitaire
? Symphony
? RCR
? Gimi
? Sunev
Below are the details of the dinner sets available from Brand Corelle.
Corelle Dinner Sets
MRP Rs.
Consumer Price
Rs.
Benefit
Rs.
Dinner set - 30pc set (Essential Series)
Design : CC, FF, FLT, MB, NL, PB, RF, SEG, SPP
Deinner Plate 6 Pc
small Plate 6 Pc
Vagetable bowl 6 Pc
Katori 6 Pc
1LServing Bowl 2 Pc 7700 6945 755
LID for 432 (1L Serving bowl) 2 Pc
Curry Bowl 1 Pc
Oval Serving Platter (Big) 1 Pc
TOTAL 30
Dinner set - 30pc set (Winter Frost White)
Design : Winter Frost White
Deinner Plate 6 Pc
small Plate 6 Pc
Vagetable bowl 6 Pc
Katori 6 Pc
1LServing Bowl 2 Pc 7165 6445 720
LID for 432 (1L Serving bowl) 2 Pc
Curry Bowl 1 Pc
Oval Serving Platter (Big) 1 Pc
TOTAL 30
Dinner set - 21 pc set (Essential Series)
Design : CC, FF, FLT, MB, NL, PB, RF, SEG, SPP
Deinner Plate 6 Pc
small Plate 6 Pc
Vagetable bowl 6 Pc
1LServing Bowl 1 Pc 5745 5145 600
Curry Bowl 1 Pc
Oval Serving Platter (Big) 1 Pc
TOTAL 21
Dinner set - 21 pc set (Winter Frost White)
Design : WFW
Deinner Plate 6 Pc
small Plate 6 Pc
Vagetable bowl 6 Pc
1LServing Bowl 1 Pc 5420 4845 575
Curry Bowl 1 Pc
Oval Serving Platter (Big) 1 Pc
TOTAL 21
Dinner set - 14 pc set (Essential Series)
Design : CC, FF, FLT, MB, NL, PB, RF, SEG, SPP
Deinner Plate 6 Pc
Katori 6 Pc 3820 3095 725
Curry Bowl 2 Pc
TOTAL 14
Dinner set - 14 pc set (Winter Frost White)
Design : WFW
Deinner Plate 6 Pc
Katori 6 Pc 3420 3045 365
Curry Bowl 2 Pc
TOTAL 14
Awards & Achievements by Sachin Enterprises
Top Performer West year 2012: Servewell
All India Top Distributor: Servewell
Certificate of Excellence for outstanding
contribution 2012: Corelle
Outstanding Sales performance year 2010: Corelle
Cost Sheet for Sachin Enterprises
For the period ended 2012 - 13
Particulars Monthly Amount Amount
Contribution in
%
Op Stock of FG 698370 8380444
Add : Purchases of FG 6783432 81401178.6
Add : Transportation / Octroi 2048981
Less : Closing Stock of FG -1055376 -12664506
Material Consumed 79166097.63 89.06862%
Administrative Expenses
Account writing fees 3000 36000
Audit fees 2083 25000
Professional Fees 708 8500
Professional Tax 208 2500
Bank Charges 9825 117900.5
Bank Interest 75727 908720
Interest 1219 14625
Late Payment Charges 225 2699
Salary 67033 804400
Emp.Pro.Tax 3317 39800
General Expenses 7953 95432
Electricity Charges 5007 60080
Insurance 3048 36576
Printing and stationery 992 11900
Conveyance 9231 110772
Depriciation 14682 176179.62
Telephone Expenses 3217 38598.01
2489682.13 2.80110%
Particulars Monthly Amount Amount
Contribution in
%
Selling & Distribution Expenses
Discount 1274 15290.99
Maintenance 729 8752
Petrol expenses 5382 64580
Salary 100550 1206600
MVAT 400030 4800361
6095583.99 6.85805%
Cost of sale 87751363.75
Profit 1130779.18
Sales 7406845 88882142.93
Average margin received
Sales - Material
Consumed
9716045
% of Margin 10.93
10.93% of Sales 9716045
Total Expenses 8585266
Profit Available for Distributor 1130779
Maintenance is related to Vehical for delivery
Salary is proportionate as Sales : Office = 6 : 4 2011000
Sales 1206600
Office 804400
Depreciation is on Office Furniture
Break even and marginal Costing sheet
Variable Expenses Total Amount
Material Consumed 79166098
Discount 15290.99
Maintenance 8752
Petrol expenses 64580
MVAT 4800361 84055081.99
Fixed Expenses
Account writing fees 36000
Audit fees 25000
Professional Fees 8500
Professional Tax 2500
Bank Charges 117900.5
Bank Interest 908720
Interest 14625
Late Payment Charges 2699
Salary 2011000
Emp.Pro.Tax 39800
General Expenses 95432
Electricity Charges 60080
Insurance 36576
Printing and stationery 11900
Conveyance 110772
Depriciation 176179.62
Telephone Expenses 38598.01 3696282.13
Fixed + Variable Cost 87751364.12
Particulars Amount
At Break-even
Point
Revenue
88,882,143.00
68,060,767.45
Less: Total Variable Cost
84,055,081.99
64,364,485.32
Contribution
4,827,061.01
3,696,282.13
Less: Total Fixed Cost
3,696,282.13
3,696,282.13
Profit
1,130,778.88 -
Calculations
PV Ratio Calculation
Contribution
4,827,061.01
Sales
88,882,143.00
PVR (Contribution/Sales) 0.05
Sales at Break-Even Point (FC/PVR)
68,060,767.45
Margin of Safety Calculation
Actual Revenue
88,882,143.00
Revenue at Break-Even Point
68,060,767.45
Margin of Safety
20,821,375.55
Conclusion
doc_115820680.docx
SUBMITTED BY MFM FIRST YEAR
Batch I - II
Group Members Roll No.
Mr. Vimal Ghudka 31
Mr. Sanil Chorge 13
Mr. Shrikant Hire 36
Mr. Dipesh kumbhar 56
Mr. Amol Nagmal 63
Mr. Ajinkya Devale 19
Submitted to
Prof. Sardesai
LIST OF CONTENTS
Sr. No. Particulars Page No.
1 ACKNOWLEDGMENT 1
2 Introduction to Costing 2-4
3 Direct Material Cost 5
4 Labour Cost 6
5 Overheads Cost 7
6 Profit 8
7 History Of Brand Corelle 9-14
8 M/S Sachin Enterprises 15-19
9 Cost Sheet For Sachin Entereprises 20-21
10 Break Even and Marginal Costing 22-23
11 Conclusion 24
ACKNOWLEDGMENT
We would like to thank the Owner and Proprietor MR. Bipin C.
Karania at M/S Sachin Enterprises for helping us in completing
the project and giving out confidential information about the
cost incurred by them for carrying on Distributorship.
We would also like to thank Prof. Serdesai for giving us an
opportunity on working on such a project.
COSTING
COST in accounting means expenses. It is the price paid for attaining the
objective. For understanding, the term of costs needs an analysis of
expenses or expenditure.
Costing is ascertainment of costs. It is different from cost accounting. It
is referred to as classifying, recording and appropriate allocation of
expenditure for determination of the costs of the products or services.
Costing is a process of ascertaining costs. It consists of rules and
principles of ascertainment of costs of a product or service.
Cost can be classified as
1. Direct Cost.
2. Indirect Cost
1. DIRECT COST
Direct Cost is a cost that can be directly traced to producing
specific goods or services.
For example, the cost of product can be attributed directly to
the cost of manufacturing that product. Other costs, such as
depreciation or administrative expenses, are more difficult to assign
to a specific product, and so are not considered direct costs. Another
example can be, the wages of an employee engaged in producing a
product can be attributed directly to the cost of manufacturing that
product.
Therefore Direct Cost can be classified in three elements.
1. Direct Material
2. Direct Labour
3. Direct Expenses
1. INDIRECT COST:
A cost that is not directly related to the production of a specific
Good or service but that is indirectly related to a variety of goods or
services. For example, the cost of administering a large firm is an
indirect cost that must be spread over a number of products or services.
It is also as called overhead.
It is that portion of total cost, which can't be identified and charged
directly to the product. It has to be allocated, apportioned and absorbed
over the unit’s manufactured on a suitable basis. It consists of following
three elements:
1. Indirect Material
2. Indirect Labour
3. Indirect Expenses
DIRECT MATERIALS COST
Direct material cost is that component of a product that has not yet been
placed into the product or into work in process inventory. This account
contains the cost or the standard cost (depending on the cost accounting
system) of the direct materials on hand. A manufacturer must disclose in
its financial statements the cost of materials on hand as well as its cost of
work in process and finished goods.
In the case of crockery, the Inventory would be the finished product
from the company & their computation would be given as:
= Fixed Cost + Variable Cost
= Cost of Material + (Carrying Cost + Ordering cost)
LABOUR COSTS
Total labour costs are the sum of wages and salaries paid by an employer
to an employee, plus any other costs incurred by the employer. As well
as wages and salaries, total labour costs include employer's social
contributions (including national insurance, contributions and pensions,
paid on behalf of the employee) and other non-wage costs including
sickness, maternity and paternity costs, vocational training costs,
recruitment costs and benefits in kind. The latter include company cars,
mobile phones and accommodation.
In our case, Labour costs include the costs of salesman and service by
the workers. Also included are Social Security taxes, retirement and
other benefits such as health or life insurance. To determine labour costs
per hour, keep a time log. When placing a value on your time, consider
the following:
? Your skill and reputation
? Wages paid by employers for similar skills
? Location of Stay
Other pricing factors include image, inflation, supply and demand, and
competition. In case of distributorship, the remuneration given to the
salesman would contribute majorly as the labour costs.
OVERHEAD COSTS
Overhead costs may be variable or fixed expenses that must be covered
to stay in business. Variable costs are those expenses that fluctuate
including vehicle expenses, rental expenses, utility bills and supplies.
Fixed costs include the purchase of equipment and service ware. After
overhead costs are determined, the total overhead costs are divided
among the total number of catering jobs expected.
In our case, the overhead costs would involve the following:
? Cost incurred towards the Delivery boy
? Cost of Packaging
? Rent and Electricity
? Also includes expenditure made on Storing.
PROFIT
It is a desired percentage added to ones total costs. You will need to
determine the percentage of profit added to each crockery item. In our
case determining a price is not easy. There is no one exact price. The
price is based on the type of order we received, special services offered
and your competition.
To operate a profitable Wholesale business, there is a need to decide on
a price that is appropriate for the services rendered. Determining the
costs of storing and transportation expenses and earning profits.
Distributers price their services using different methods. The pricing
formula that covers the costs and provides a profit is as follows:
Materials + Labour + Overheads + Profit = Price
Therefore, in case of Crockery distribution the cost will include the
following components:
-The Materials would include the Cost finished product by company.
-The Selling cost would include the cost of salesman, delivery boy.
-The Overheads would include the cost of storage and maintenance.
HISTORY OF BRAND CORELLE
More than 40 years ago, R&D scientists at Corning Glass Works
developed a special hub lamination process that thermally bonds
three layers of glass—a core centre surrounded by top and bottom
layers of “skin” or “glaze” glass. The glass was decorated using
unique enamels that actually became a part of the glass, creating
durable, scratch-resistant designs. The result? Corelle glass
dinnerware, today known worldwide for its legendary strength and
durability.
First introduced to consumers in 1970, Corelle was the first brand
of glass dinnerware to meet a variety of consumer demands
through features that included Dishwasher and oven safe Break-,
chip-, and fade-resistant under normal use Lightweight, yet durable
Easy to clean Affordable, yet attractive at the same time, Corelle
offered two revolutionary guarantees to consumers. First, the brand
promised to replace any dinnerware that broke, chipped, stained or
cracked within the first two years of normal use, without requiring
proof of purchase. Second, Corelle® committed to pattern
continuity—a feature extremely important to consumers. Even
today, Corelle tests and refreshes its design portfolio based on
extensive consumer research.
During its first decade, Corelle glass dinnerware was virtually sold
out even before it was made. Within 18 months after Corelle was
first placed on sale, more than 40 million pieces had been sold – an
unprecedented record.
Today it is estimated that nearly half of all households have
Corelle break- and chip-resistant dinnerware in their kitchens.
PHILOSOPHY
Corelle glass dinnerware is designed to make an impact and take
one. Our patterns are inspired by the latest trends in fashion and
home décor, delivering a variety of styles that will make a
statement in any household. Every piece of Corelle glass
dinnerware is break- and chip-resistant, making it perfect for
everyday dining and entertaining… proving once again that
beauty can be tough.
CORNINGWARE CORELLE
The Corningware Corelle & more stores are the retail operations of
World Kitchen, LLC in the United States and World Kitchen
manufactures and/or markets well-known brands including
CorningWare, Pyrex, Corelle, Revere, EKCO, Baker's Secret,
Magnalite, Chicago Cutlery, Visions, Snapware and OLFA.
Corningware Corelle & more stores carry all World Kitchen brands as
well as a wide selection of Corelle Accessories, flatware, glassware and
other kitchen essential products.
The first retail store opened Flemington, NJ in 1981. Our Stores are
located in outlet centers across North America with over 80 stores
operating in the United States and 5 in Canada.
BRANDS
FEATURES & BENEFITS
Everybody has their own sense of style. Which is why we offer our
Corelle dinnerware in so many different patterns and shapes. But one
thing everybody agrees on is durability. Dinnerware needs to last. We
use a unique material called Vitrelle, which gives our plates and bowls
that legendary Corelle durability. It also gives them a number of other
benefits that other brands can't offer.
Break & Chip Resistant
Microwave Safe
Oven Safe to 350 degrees
Easy to clean & Dishwasher Safe
Stackable & Space Saving
Lightweight
Made in USA
Sachin Enterprises
Sachin Enterprises deals with distributorship of crockery ware and is in the market
from the last 10years. The various brands for which Sachin Enterprises deals with
are as follows.
? Corelle
? Curver
? Mag-Lite
? Victorinox
? Apex
? ServeWell
? Solitaire
? Symphony
? RCR
? Gimi
? Sunev
Below are the details of the dinner sets available from Brand Corelle.
Corelle Dinner Sets
MRP Rs.
Consumer Price
Rs.
Benefit
Rs.
Dinner set - 30pc set (Essential Series)
Design : CC, FF, FLT, MB, NL, PB, RF, SEG, SPP
Deinner Plate 6 Pc
small Plate 6 Pc
Vagetable bowl 6 Pc
Katori 6 Pc
1LServing Bowl 2 Pc 7700 6945 755
LID for 432 (1L Serving bowl) 2 Pc
Curry Bowl 1 Pc
Oval Serving Platter (Big) 1 Pc
TOTAL 30
Dinner set - 30pc set (Winter Frost White)
Design : Winter Frost White
Deinner Plate 6 Pc
small Plate 6 Pc
Vagetable bowl 6 Pc
Katori 6 Pc
1LServing Bowl 2 Pc 7165 6445 720
LID for 432 (1L Serving bowl) 2 Pc
Curry Bowl 1 Pc
Oval Serving Platter (Big) 1 Pc
TOTAL 30
Dinner set - 21 pc set (Essential Series)
Design : CC, FF, FLT, MB, NL, PB, RF, SEG, SPP
Deinner Plate 6 Pc
small Plate 6 Pc
Vagetable bowl 6 Pc
1LServing Bowl 1 Pc 5745 5145 600
Curry Bowl 1 Pc
Oval Serving Platter (Big) 1 Pc
TOTAL 21
Dinner set - 21 pc set (Winter Frost White)
Design : WFW
Deinner Plate 6 Pc
small Plate 6 Pc
Vagetable bowl 6 Pc
1LServing Bowl 1 Pc 5420 4845 575
Curry Bowl 1 Pc
Oval Serving Platter (Big) 1 Pc
TOTAL 21
Dinner set - 14 pc set (Essential Series)
Design : CC, FF, FLT, MB, NL, PB, RF, SEG, SPP
Deinner Plate 6 Pc
Katori 6 Pc 3820 3095 725
Curry Bowl 2 Pc
TOTAL 14
Dinner set - 14 pc set (Winter Frost White)
Design : WFW
Deinner Plate 6 Pc
Katori 6 Pc 3420 3045 365
Curry Bowl 2 Pc
TOTAL 14
Awards & Achievements by Sachin Enterprises
Top Performer West year 2012: Servewell
All India Top Distributor: Servewell
Certificate of Excellence for outstanding
contribution 2012: Corelle
Outstanding Sales performance year 2010: Corelle
Cost Sheet for Sachin Enterprises
For the period ended 2012 - 13
Particulars Monthly Amount Amount
Contribution in
%
Op Stock of FG 698370 8380444
Add : Purchases of FG 6783432 81401178.6
Add : Transportation / Octroi 2048981
Less : Closing Stock of FG -1055376 -12664506
Material Consumed 79166097.63 89.06862%
Administrative Expenses
Account writing fees 3000 36000
Audit fees 2083 25000
Professional Fees 708 8500
Professional Tax 208 2500
Bank Charges 9825 117900.5
Bank Interest 75727 908720
Interest 1219 14625
Late Payment Charges 225 2699
Salary 67033 804400
Emp.Pro.Tax 3317 39800
General Expenses 7953 95432
Electricity Charges 5007 60080
Insurance 3048 36576
Printing and stationery 992 11900
Conveyance 9231 110772
Depriciation 14682 176179.62
Telephone Expenses 3217 38598.01
2489682.13 2.80110%
Particulars Monthly Amount Amount
Contribution in
%
Selling & Distribution Expenses
Discount 1274 15290.99
Maintenance 729 8752
Petrol expenses 5382 64580
Salary 100550 1206600
MVAT 400030 4800361
6095583.99 6.85805%
Cost of sale 87751363.75
Profit 1130779.18
Sales 7406845 88882142.93
Average margin received
Sales - Material
Consumed
9716045
% of Margin 10.93
10.93% of Sales 9716045
Total Expenses 8585266
Profit Available for Distributor 1130779
Maintenance is related to Vehical for delivery
Salary is proportionate as Sales : Office = 6 : 4 2011000
Sales 1206600
Office 804400
Depreciation is on Office Furniture
Break even and marginal Costing sheet
Variable Expenses Total Amount
Material Consumed 79166098
Discount 15290.99
Maintenance 8752
Petrol expenses 64580
MVAT 4800361 84055081.99
Fixed Expenses
Account writing fees 36000
Audit fees 25000
Professional Fees 8500
Professional Tax 2500
Bank Charges 117900.5
Bank Interest 908720
Interest 14625
Late Payment Charges 2699
Salary 2011000
Emp.Pro.Tax 39800
General Expenses 95432
Electricity Charges 60080
Insurance 36576
Printing and stationery 11900
Conveyance 110772
Depriciation 176179.62
Telephone Expenses 38598.01 3696282.13
Fixed + Variable Cost 87751364.12
Particulars Amount
At Break-even
Point
Revenue
88,882,143.00
68,060,767.45
Less: Total Variable Cost
84,055,081.99
64,364,485.32
Contribution
4,827,061.01
3,696,282.13
Less: Total Fixed Cost
3,696,282.13
3,696,282.13
Profit
1,130,778.88 -
Calculations
PV Ratio Calculation
Contribution
4,827,061.01
Sales
88,882,143.00
PVR (Contribution/Sales) 0.05
Sales at Break-Even Point (FC/PVR)
68,060,767.45
Margin of Safety Calculation
Actual Revenue
88,882,143.00
Revenue at Break-Even Point
68,060,767.45
Margin of Safety
20,821,375.55
Conclusion
doc_115820680.docx