Date post: | 17-Dec-2014 |
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Business |
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PRESENTED BY :AFROZE – 06
ANURADHA - 02ASHWIN – 10
MALVIKA – 11NAMRATA – 08
POOJA – 07VAIBHAV - 02
COMPANY PROFILE WHY LIMON? PROCESS INGREDIENTS COST SHEET MARGINAL COSTING
SEVEN LEMON PRIVATE LIMITED
ESTABLISHED IN 2013
INITIAL INVESTMENT : Rs. 98,00,000/-
DIRECTOR : Mr. AFROZE MANSURY
partners : Afroze mansury, anuradha reddy, ashwin patil, malvika bansal, namrata jeurkar, pooja lakhani & vaibhav zunjarrao
firm type : partnership with equal contribution & profit SHARING
LOCATION :INDUSTRIAL ESTATE, BUILDING NO – 17 EASTERN EXPRESS HIGHWAY BHIWANDI – 421302 MAHARASHTRA
CONTACT NO : 022-6131191 9664503093DISTRIBUTION AREAS : MUMBAI & NAVI
MUMBAI.
1) To facilitate home-made like nimbu pani refreshment anywhere on the go.
2) To attain number 1 position amongst lemon drinks.
3) To provide a desirable substitute in beverage category.
4) To become omnipresent by being available in colleges, school canteens, hospitals, gyms etc.
5) To be an economical hydrating agent.
6) To reach the masses.
7) Finally, in the long run, to be the leading sports drink.
CREATING…………..
ONSET OF SUMMERSNATURAL HEALTH DRINKREFRESHINGMEDICINAL PROPERTIESPREFERRED OVER SOFT
DRINKSLOW COST
FILTRATION OF WATER
ADDITION OF SUGAR SYRUP
ADDITION OF CONC. LEMON JUICE & ACIDITY REGULATORS
ADDITION OF SALT & PRESERVATIVES
FINAL PRODUCT
1) Entire process will be based on high-end automated technology.
2) Water from tube well reservoir will be filtered and processed sugar syrup will be added.
3) Further, squeezed and concentrated lemon juice will be added along with acidity regulators, preservatives and salt.
4) Thus the final product (drink) will be bottled, apped and sealed.
Raw material Per unit (Rs.)
Units Amount (Rs.)
Outsourced bottles 1.6 /bottle
1500 2400
Corrugated boxes 5/box 100 500
Sugar 30/kg 35 1050
Lemon 0.33/lemon
6000 2000
Acidity regulators (8ml/unit)
80/ltr 12 960
Preservatives (12ml/unit)
90/ltr 18 1620
Salt (2g/unit) 12/kg 3 36
Cost Sheet is a periodical statement of cost designed to show in detail the various elements of cost of goods produced like Prime Cost, Factory Overheads, Cost of Production, Total Cost, etc.
It is prepared at regular intervals e.g., weekly, monthly ,quarterly, yearly etc.
Comparative figures of the various period may also be shown in the cost sheet so that assessment can be made about the progress of the business
In the assigned project, estimated Cost Sheet of a month has been shown
Particulars Per unit (Rs.)
Units Amount (Rs.)
(A)Direct material
Opening stock of raw material
5.68 1500 8520
(+)Purchases 0.024 1500 36
Direct expenses 80 1500 120000
Direct wages/Labor 14 1500 21000
PRIME COST
149566
(B)Factory overheads
Factory manager’s salary 12.67 1500 19000
Unproductive wages 1.33 1500 1950
Factory insurance 10 1500 15000
Factory lightning 33.33 1500 50000
Depreciation on plant & machinery (@5%)
83.33 1500 125000
Repairs & maintenance 0.67 1500 1000
Particulars Per Unit (Rs.)
Units Amount (Rs.)
Factory stationery 0.33 1500 500
Factory overheads 141.63 1500 212500
Factory Cost
362066
(C)Office & administration o/h
Director’s fees 5 1500 7500
Telephone expenses 0.13 1500 200
Office insurance 5.33 1500 8000
Legal expenses 66.66 1500 100000
Depreciation on building (@10%)
133.33 1500 200000
Misc.expenses 1.66 1500 2500
Office overheads 21.21 1500 318200
Cost of Production 680266
(D) Selling & distribution o/h
Depreciation on delivery van (@5%)
3.33 1500 5000
Sales & Promotion expenses
0.13 1500 200
Advertisement & publicity 6 1500 9000
PARTICULARS PER UNIT (Rs.)
UNITS
AMOUNT (Rs.)
Transportation expenses
0.8 1500 1200
Packaging & Labeling 2.13 1500 3200
Commission on sales (3.25%)
0.03 1500 50
Selling & Distribution O/H
12.42 1500 18650
Cost of sales/ Total Cost
698916
Initially, the Fixed Cost has been decided on the basis of the cost of the materials used in the process and so was the S.P.
This is done keeping in mind the pricing technique followed by the competitors (Nimbooz)
The per unit cost incurred for the overall process is estimated to be Rs. 5.70 and profit margin of Rs. 10.00 is our aim
Considering competitor’s S.P. i.e. Rs. 18, we have decided ours to be Rs. 15, which in turn also fulfills our aim
Marginal cost is the change in the total cost that arises when the quantity produced changes by one unit
That is, it is the cost of producing one
more unit of a good
Marginal costs include all costs that vary with the level of production
Fixed cost has been calculated on the basis of the cost of raw materials used i.e. is Rs 8566/-
Variable cost has been calculated including the variable factory overheads (i.e. Repairs & Maintenance, Unproductive wages and Factory stationery).
Both these cost are being fixed after analyzing the competitor’s cost sheet.
QUANTITY
S.P.
FIXED COST(FC)
VARIABLE
COST(VC)Rs. 2.3
P.U.
TOTAL COST(FC + VC)
SALES(S.P. * QUANTITY)
0 15 8566 - 0 0
500 15 8566 1150 9716 7500
1000 15 8566 2300 10866 15000
1500 15 8566 3450 12016 22500
P/V RATIO : CONTRIBUTION/SALES * 100
QUANTITY = 1500
P/V RATIO = (SALES-VC)/SALES *100 = (22500-12016)/22500
*100 = 47%
So, the P/V ratio is 47%.
MARGIN of SAFETY = PROFIT/PVRATIO
= (SALES-TC)/PV
= (22500-12016)/47%
= Rs.22306.38 /-
THEREFORE, MOS IS RS. 22306.38/-
1) Being a start up we have decided to produce only 1500 units in the first month.
2) After sale of almost 628 units we will start gaining.
3) On sale of 1500, profit estimated is Rs. 10484/-
4) It is expected that on sale of 50,000 units we will be able to recover the total cost of production.
5) At the end, as per budgeting, we got a product that is high on lemon and low on money.
THANTHANKK YOU
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