Rs. Rs.

A. Purchase price (Rs./ Kg.) 12.00

B. Estimated monthly expenses in Rs. 1,960.00
Details
Cashier's salary
600
Counter boys (2)
600
Rent
150
Electricity
400
Misc.expenses
210
3,000
65.33 paise
Unit size
Purchase price @
Rs.12/kg
Operating cost @
65.3 ps/kg
Containers
cost/unit
TotaI
cost/unit 110% of cost Unit Price
gms. Rs. Rs. Rs. Rs. Rs. Rs.
50 0.60 0.03 0.075 0.708 0.778 0.80
100 1.20 0.07 0.080 1.345 1.480 1.50
250 3.00 0.16 0.100 3.263 3.590 3.60
500 6.00 0.33 0.120 6.447 7.091 7.10
1000 12.00 0.65 0.160 12.813 14.095 14.10
TotaI weight
(kgs)
50 3,640 4,687 234
100 2,200 3,130 313
250 720 1,640 410
500 340 1,000 500
1000 100 543 543
TotaI: 7,000 11,000 2,000
No. of orders 3640 2200 720 340 100 7000
No. of units 4687 3130 1640 1000 543 11000
Total Weight 234.35 313 410 500 543 2000.35
50 100 250 500 1000
gms. gms. gms. gms. gms.
Rs. Rs. Rs. Rs. Rs. Rs.
1
No.of orders
312 189 62 29 9
2
No.of pieces sold
256 171 89 55 30
3
Total weight
4
Total weight 89 119 156 190 206

5
Total weight
6
657 478 307 274 244 1,980
7
234 313 410 500 543 2,000
8
(6/7) Rs./kg. 2.806 1.528 0.749 0.547 0.450 0.990
9
Rs./piece 0.130 0.147 0.198 0.303 0.519
10
" 0.600 1.200 3.000 6.000 12.000
11
" 0.075 0.080 0.100 0.120 0.160
12
" 0.805 1.427 3.298 6.423 12.679
13
" 0.886 1.570 3.623 7.065 13.947
14 " 0.900 1.600 3.600 7.100 13.900
Rs. Rs.
MriduIa Ice-Cream ParIour
Exhibit 1
E. Computation of price
ScheduIe for Price Fixation
Exhibit 2
MriduIa Ice-Cream parIour
C. Expected average monthly volume (in Kgs.)
D. Expected operting cost/kg. (B)/(C)
Total cost/unit
Misc expenses
Total (1 to 5)
Total weight (kgs)
Operating cost/kg.
Rent
Electricity
AnaIysis of saIes during ApriI
Unit-size
(gms) No.of orders TotaI no.of units
Common Cost
Exhibit 3
MriduIa Ice-Cream ParIour
ScheduIe for Price revision
(Based on "Proper" aIIocation)
S.No.
Basis of
AIIocation
ActuaI for
June
Operating cost/kg.
Purchase price/unit @ Rs.12/kg.
Containers (estimates)
Cashier's salary
Counter boy's salary
110% of cost
Price (nearest 10 p)
Exhibit 4
MriduIa Ice-Cream ParIour
Income Statement for ApriI
A. Revenue
29,099.30
Product line No. of Kgs Price per piece
"50 gms 234 0.80 3,744
"100 gms 313 1.50 4,695
"250 gms 410 3.60 5,904
"500 gms 500 7.10 7,100
"1000 gms 543 14.10 7,656
Total 2000 29,099
B.
Purchase price 2100 12.00 25,200.00
Gross profit 3,899.30
C. Rs. 1,980.00
462
616
154
440
308
Packaging/Containers 972.81
Product line No. of containers Cost per piece
Total cost
"50 gms 4,687 0.075
351.53
"100 gms 3,130 0.080
250.40
"250 gms 1,640 0.100
164.00
"500 gms 1,000 0.120
120.00
"1000 gms 543 0.160
86.88
Total operating expenses
2,952.81
. 946.49
E. 378.60
F.
567.90
Product Line (gms) (gms) (gms) (gms) (gms)
Revenues (Rs.) 50 100 250 500 1000 TotaI
Sales Price per piece 0.80 1.50 3.60 7.10 14.10
Sales (in units) 4,680 3,130 1,640 1,000 543
Revenues (Rs.) 3,744.00 4,695.00 5,904.00 7,100.00 7,656.30 29,099.30
VariabIe cost
Purchase Price @ Rs. 12/kg 0.60 1.20 3.00 6.00 12.00
Containers Cost/unit 0.08 0.08 0.10 0.12 0.16
Loss due to melting (5% per unit) 0.03 0.06 0.15 0.30 0.60
TotaI Cost/unit 0.71 1.34 3.25 6.42 12.76 26,172.28
Contribution/unit #8 0.10 0.16 0.35 0.68 1.34 2,927.02
Contribution/kg #8 1.90 1.60 1.40 1.36 1.34
TotaI contribution 444.6 500.8 574 680 727.62 2927.02
Fixed Costs (ActuaIs for June)
Counter boy's salary 616.00
Rent 154.00
Electricity 440.00
Misc Expenses 308.00
1,518.00
Profit Before Tax 1,409.02
(less) Tax 563.61
Profit After Tax 845.41
ess: Operative expenses
Cashier's salary
Less: Cost of raw materiaI consumed
Counter boy's salary
Rent
MriduIa Ice-Cream ParIour
Profit Before Taxes
Less: Estimated tax IiabiIity (40%)
Profit After Taxes
Electricity
Misc.Expenses
A. Purchase price (Rs./ Kg.) 12.00
B. Estimated monthly expenses in Rs. 1,960.00
Details
Cashier's salary 600
Counter boys (2) 600
Rent 150
Electricity 400
Misc.expenses 210
3,000
65.33 paise
Unit size
Purchase price
Rs.12/kg
Operating cost
65.3 ps/kg
Containers
cost/unit
Total
cost/unit
110 of
cost
Unit
Price
gms. Rs. Rs. Rs. Rs. Rs. Rs.
50 0.60 0.03 0.075 0.708 0.778 0.80
100 1.20 0.07 0.080 1.345 1.480 1.50
250 3.00 0.16 0.100 3.263 3.590 3.60
500 6.00 0.33 0.120 6.447 7.091 7.10
1000 12.00 0.65 0.160 12.813 14.095 14.10
Total weight
(kgs)
50 3,640 4,687 234.35
100 2,200 3,130 313.00
250 720 1,640 410.00
500 340 1,000 500.00
1000 100 543 543.00
Total: 7,000 11,000 2,000.35
50 100 250 500 1000
gms. gms. gms. gms. gms.
Rs. Rs. Rs. Rs. Rs. Rs.
1 No.oI orders 240 145 48 22 7 462
2 No.oI pieces sold 263 175 92 56 30 616
3 Total weight
4 Total weight 106 141 185 225 245 902
5 Total weight
6 609 461 325 303 282 1,980
7 234 313 410 500 543 2,000
8 (6/7) Rs./kg. 2.603 1.473 0.793 0.606 0.519 0.990
9 Rs./piece 0.130 0.147 0.198 0.303 0.519
10 ' 0.600 1.200 3.000 6.000 12.000
11 ' 0.075 0.080 0.100 0.120 0.160
12 ' 0.805 1.427 3.298 6.423 12.679
13 ' 0.886 1.570 3.623 7.065 13.947
14 ' 0.900 1.600 3.600 7.100 13.900
Rs. Rs.
E. Computation oI price
Exhibit 1
Mridula Ice-Cream Parlour
Schedule for Price Fixation
C. Expected average monthly volume (in Kgs.)
D. Expected operting cost/kg. (B)/(C)
Exhibit 2
Mridula Ice-Cream parlour
Analysis of sales during April
Unit-size
(gms) No.of orders Total no.of units
Total (1 to 5)
Exhibit 3
Mridula Ice-Cream Parlour
Schedule for Price revision
(Based on ~Proper allocation)
Common Cost Basis of
Allocation
Actual for
1une
Cashier`s salary
Counter boy`s salary
Rent
Electricity
Misc expenses
Income Statement for April
Total weight (kgs)
Operating cost/kg.
Operating cost/kg.
Purchase price/unit Rs.12/kg.
Containers (estimates)
Total cost/unit
S.No.
110 oI cost
Price (nearest 10 p)
Exhibit 4
Mridula Ice-Cream Parlour
A. Revenue 29,099.30
Product line No. oI Kgs Price per piece
'50 gms 234 0.80 3,744
'100 gms 313 1.50 4,695
'250 gms 410 3.60 5,904
'500 gms 500 7.10 7,100
'1000 gms 543 14.10 7,656
Total 2000 29,099
B.
Purchase price 2100 12.00 25,200.00
Gross proIit 3,899.30
C. Rs. 1,980.00
462
616
154
440
308
Packaging/Containers 972.81
Product line No. oI containers Cost per piece Total cost
'50 gms 4,687 0.075 351.53
'100 gms 3,130 0.080 250.40
'250 gms 1,640 0.100 164.00
'500 gms 1,000 0.120 120.00
'1000 gms 543 0.160 86.88
Total operating expenses 2,952.81
. 946.49
E. 378.60
F. 567.90
Less: Estimated tax liability (40)
Profit After Taxes
Rent
Electricity
Misc.Expenses
Profit Before Taxes
Less: Cost of raw material consumed
ess: Operative expenses
Cashier`s salary
Counter boy`s salary