MAC 2 Mridula

7/30/2019 MAC 2 Mridula

1/17

Plant Capacity 2000000

Past Year's level of operation 1500000

Average unit SP 1.2

Total fixed cost 520000

Avg variable unit cost 0.75

Current

Agg. A B C

Sales at full capacity(units)(A) 2000000

Actual sales volume(units)(B) 1500000 600000 400000 500000

Unit sales price(C) 1.2 1.67 1.5 0.4

Total sales revenue(D=B*C) 1800000 1000000 600000 200000

Variable cost per unit(E) 0.75 1.25 0.625 0.25

Total variable cost(F=B*E) 1125000 750000 250000 125000

Fixed Cost(G) 520000 170000 275000 75000

Net profit(H=D-F-G) 155000 80000 75000 0

Taxes 77500

Dividends 50000

Union bonus 0

Profit after tax 77500

RE 27500

Ratios

Variable cost to sales(F/D) 0.625 0.75 0.42 0.625

Variable income to sales 0.375 0.25 0.58 0.375Utilization of capacity 75.0% 30.0% 20.0% 25.0%

Break Even unitwise 1155556 408000 314285.7 500000

Break even revenuewise 1386667 680000 471428.6 200000


2/17

0.708333

Next Year

A B C Agg

400000 400000 950000 1750000

1.67 1.5 0.8 1.158857

668000 600000 760000 2028000

1.375 0.6875 0.275 0.620714

550000 275000 261250 1086250

170000 275000 195000 640000

-52000 50000 303750 301750

0 25000 151875 150875

0

0

-52000 25000 151875 150875

0.823353 0.458333 0.34375 0.535626

0.176647 0.541667 0.65625 0.46437420.0% 20.0% 47.5% 87.5%

576271.2 338461.5 371428.6 1189275

962372.9 507692.3 297142.9 1378200


3/17

Purchase Price(Rs/kg) 12

Estimated Monthly Expense

Cahier's salary 600

Counter Boys 600

Rent 150Electricity 400

Misc 210

Expected average monthly volume(kg) 3000

Expected Operating Cost/kg 0.653

SP computation

Unit Size (g)

Purchase

Price@12

Operating

[email protected]/

kg

Total

cost/unit

50 0.6 0.033 0.708

100 1.2 0.065 1.345

250 3 0.163 3.263

500 6 0.327 6.447

1000 12 0.653 12.813

Income statement for April

Revenue

50 g 4687*0.8 3749.6

100 g 3130*1.5 4695

250 g 1640*3.6 5904

500 g 1000*7.1 71001000 g 543*14.1 7656.3

Less: Cost

Purchase Price 2000*12 24000

Operating expenses

Cahier's salary 600

Counter Boys 600

Rent 150

Electricity 400

Misc 210 1960

Packing/container

50 g 4687*0.075 351.525

100 g 3130*0.08 250.4

250 g 1640*0.1 164

500 g 1000*0.12 120

1000 g 543*0.16 86.88 972.805

PBT


4/17

taxes

PAT

1 No.of orders

2No.of pieces

sold

3 Total weight

4 Total weight

5 Total weight

67

8(6/7) Rs./kg.

9 Rs./piece

10

11

12

13

14

Product Line (gms)

Revenues (Rs.) 50

Sales Price per piece 0.80

Sales (in units) 4,687

Revenues (Rs.) 3,749.60

Variable cost

Purchase Price @ Rs. 12/kg 0.600Containers Cost/unit 0.075

Loss due to melting (5% per unit) 0.030

Total Cost/unit 0.705

Contribution/unit Rs. 0.095

Contribution/kg Rs. 1.900

Total contribution 445.265

Misc expenses

Ex

Mridula Ice-

Schedule fo(Based on Pr

S.No.

Common Cost Basis of

Allocation

Cashiers salary(ignoring as Fra

Counter boys salary

Rent

Electricity

Total cost/unit

110% of cost

Price (nearest 10 p)

Mridula Ice-Cream Parlo

Total (1 to 5)Total weight (kgs)

Operating cost/kg.

Operating cost/kg.

Purchase price/unit @ Rs.12/kg.

Containers (estimates)


5/17

Fixed Costs (Actuals for June)

Counter boy's salary

Rent

Electricity

Misc Expenses

Profit Before Tax

(less) Tax

Profit After Tax


6/17

Unit Size (g) No of order total no units Total wt

50 3640 4687 234

100 2200 3130 313

250 720 1640 410500 340 1000 500

1000 100 543 543

Total 7000 11000 2000

110% of cost Unit SP

0.7788 0.8

1.4795 1.5

3.5893 3.6

7.0917 7.1

14.0943 14.1

Income statement for April(modified)

Revenue

50 g 4687*0.8 3749.6

100 g 3130*1.5 4695

250 g 1640*3.6 5904

500 g 1000*7.1 710029104.9 1000 g 543*14.1 7656.3 29104.9

Less: Cost


Operating expenses

Cashier's salary 0 (Not considering as Frank is cashier

Counter Boys 600

Rent 150

Electricity 400

Misc 210 1360

Packing/container

50 g 4687*0.075 351.525

100 g 3130*0.08 250.4

250 g 1640*0.1 164

500 g 1000*0.12 120

26932.805 1000 g 543*0.16 86.88 972.805 26332.81

2172.095 PBT 2772.095


7/17

868.838 taxes 1108.838

1303.257 PAT 1663.257

50 100 250 500 1000

gms. gms. gms. gms. gms.

Rs. Rs. Rs. Rs. Rs. Rs.

- - - - - -

263 175 92 56 30616

106 141 185 225 245 902

369 316 277 281 275 1518234 313 410 500 543 2,000

1.577 1.010 0.676 0.562 0.506 0.759

0.079 0.101 0.169 0.281 0.506

0.600 1.200 3.000 6.000 12.000

0.075 0.080 0.100 0.120 0.160

0.754 1.381 3.269 6.401 12.666

0.829 1.519 3.596 7.041 13.933

0.800 1.500 3.600 7.000 13.900

(gms) (gms) (gms) (gms)

100 250 500 1000 Total

1.50 3.60 7.10 14.10

3,130 1,640 1,000 543

4,695.00 5,904.00 7,100.00 7,656.30 29,104.90

1.200 3.000 6.000 12.0000.080 0.100 0.120 0.160

0.060 0.150 0.300 0.600

1.340 3.250 6.420 12.760 26,177.22

0.160 0.350 0.680 1.340 2,927.69

1.600 1.400 1.360 1.340

500.8 574 680 727.62 2927.685

ibit 3

Cream Parlour

Price revisionoper allocation)

Actual for

June

r


8/17

600

150

400

210

1,360.00

1,567.69

627.07

940.61


9/17

Income statement for April(higher prices)

Revenue

50 g 4687*0.9 4218.3

100 g 3130*1.6 5008

250 g 1640*3.6 5904

500 g 1000*7.1 71001000 g 543*14.1 7656.3 29886.6

Less: Cost


Operating expenses

Cashier's salary 0

Counter Boys 600

Rent 150

Electricity 400

Misc 210 1360

Packing/container

50 g 4687*0.07 351.525

100 g 3130*0.08 250.4

250 g 1640*0.1 164

500 g 1000*0.12 120

1000 g 543*0.16 86.88 972.805 26332.81

PBT 3553.795


10/17

taxes 1421.518

PAT 2132.277


11/17

Sales 2152500

Direct Labour 271250

Direct Material 458000

Manufacturing overhead

Machine related 336000Set up labour 40000

Receiving amd production control 180000

Engg 100000

Packaging and shipping 150000

Total manufacturing overhead 806000

Gross Margin 617250 28.68%

GAS 559650

operating income 57600 2.68%

Valves Pumps Flow controller

Direct Labour 10 12.5 10

Direct Material 16 20 22

Manufacturing overhead@300% 30 37.5 30

Std unit cost 56 70 62

target SP 86.15 107.69 95.38

planned GM 35.00% 35.00% 35.00%

Actual SP 86 87 105

Actual GM 34.88% 19.54% 40.95%

Valves Pumps Flow controller

Material per unit

parts@1 4

parts@2 4 6 10

parts@6 12

parts@7 14

parts@8 8

Material cost per unit 16 20 22

DL per unit 0.4 0.5 0.4DL $ per unit @ 25/ DL hr 10 12.5 10

m/c hr per unit 0.5 0.5 0.3

Valves Pumps

Flow

controller Total

Productions (units) 7500 12500 400 20400

M/c hrs 3750 6250 1200 11200

Production runs 10 50 100 160
mailto:parts@2mailto:parts@6mailto:parts@7mailto:parts@8mailto:parts@8mailto:parts@7mailto:parts@6mailto:parts@2


12/17

Number of shipments 10 70 220 300

Hrs of engg hrs 250 375 625 1250


13/17

Cost driver Valves Pumps Flow contr

Machine related Machine hr 3750 6250 1200

Percentage 33.48% 55.80% 10.71%

Activity cost 112500 187500 36000

Units 7500 12500 4000Cost/unit 15.00 15.00 9.00

Set up labour Production run 10 50 100

Percentage 6.25% 31.25% 62.50%

Activity cost 2500 12500 25000

Cost/unit 0.33 1.00 6.25

Receiving amd

production control Production run 10 50 100

Percentage 6.25% 31.25% 62.50%

Activity cost 11250 56250 112500

Cost/unit 1.5 4.5 28.125

Total 1.83 5.50 34.38

Engg Hr of engg work 250 375 625

Percentage 20.00% 30.00% 50.00%

Activity cost 20000 30000 50000

cost/unit 2.67 2.40 12.50

Packaging and shipping No of shipment 10 70 220

Percentage 3.33% 23.33% 73.33%

Activity cost 5000 35000 110000

cost/unit 0.67 2.80 27.50

Total overhead/unit 20.17 25.70 83.38

Valve Pump FC

Direct Material 16 20 22

Direct Labour 10 12.5 10

Overhead 20.17 25.7 83.38

Total CP 46.17 58.2 115.38

SP 86 87 105

Profit/loss per

unit 39.83 28.8 -10.38GM % 46.31% 33.10% -9.89%

Production run

Machine hr

Engg hr

Shipment


14/17


15/17

Total

336000

40000

180000

100000

150000


16/17

Mumbai Poster Paint CommercialEX 3 EX 4 EX 5

Income 355,231 206,261 81,363

Variable Variable Cost 107,621 72,305 54,719

Contribution to Mumbai Fixed OH 247,610 133,956 26,644Fixed Sunk Cost 96,155 32,344

Escapable Fixed Cost 89,651 51,502 2,300

Total Fixed Cost 185,806 83,846 2,300

Contributin to Local Company OH 61,804 50,110 24,344

Mumbai OH

Contribution to Company OH and Profits

Fixed Cost to Sales 0.52 0.41 0.03

Break Even Income 185,806 83,846 2,300

Location Cont./ Sales Ratio 0.17 0.24 0.30

Cont to Sales (P/v Ratio) 0.70 0.65 0.33

Delhi Poster Paint CommercialEX 6 EX 7 EX 8

Income 99,899 23,318 14,516

Variable Cost 40,619 3,867 9,884

Contribution to Delhi Fixed OH 59,280 19,451 4,632

Sunk Cost 13,608 4,068Escapable Fixed Cost 15,938 5,518 592

Total Fixed Cost 29,546 9,586 592

Contributin to Local Company OH 29,734 9,865 4,040

Delhi OH

Contribution to Company OH and Profits

Company OH

Company Profit/Loss

Fixed Cost to Sales 0.30 0.41 0.04

Break Even Income 29,546 9,586 592

Location Cont./ Sales Ratio 0.30 0.42 0.28

Cont to Sales (P/v Ratio) 0.59 0.83 0.32


17/17

Location Total Company TOTAL

642,855

234,645

408,210128,499 185,806

143,453

271,952

136,258

89,482

46,776

0.42

271,952

0.21

0.63

137,733 780,588

54,370 289,015

83,363 491,573

(28,993) 99,506112,356 255,809

83,363

43,639 179,897

31,011 120,493

12,628 59,404

100,061

(40,657)

0.61 0.58

83,363

0.32

0.61

MAC 2 Mridula

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