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SUNITA MISHRA 2013PGP413

DIRECT COST Paper Toner Power PRIME COST

0.2 0.032 0.04 0.272

Selling Price Variable Cost Contribution FIXED COST Consumables Maintenance Depeciation Production Overheads Admin Overhead Interest Total Fixed Cost Break Even ( Excluding Opportunity Cost) Opportunity Cost Total Fixed Cost (Including Opportunity Cost) Break Even

1 0.272 0.728

1400 1000 7142.85 9542.85 1400 5000 15942.85 21900 30000

45942.85 63108

Selling Price Variable Cost Contribution FIXED COST Consumables Maintenance Depeciation Production Overheads Admin Overhead Interest Total Fixed Cost

1.1 0.272 0.828

1400 1000 7000 9400 1400 3500 14300

85 0.9 0.272 0.272 0.578 .628 1400 1000 7000 9400 1400 3500 14300 22771 30000 44300 70541 FOR GENERAL CUSTOMERS Selling Price Variable Cost Contribution FOR SCHOOL Selling Price Variable Cost Contribution 1 0.728 0.Break Even ( Excluding Opportunity Cost) Opportunity Cost Total Fixed Cost (Including Opportunity Cost) Break Even 17271 30000 44300 53502 Selling Price Variable Cost Contribution FIXED COST Consumables Maintenance Depeciation Production Overheads Admin Overhead Interest Total Fixed Cost Break Even ( Excluding Opportunity Cost) Opportunity Cost Total Fixed Cost (Including Opportunity Cost) Break Even 0.272 0.

Contribution due to contract with school 17340 FIXED COST Consumables Maintenance Depeciation Production Overheads Admin Overhead Interest Total Fixed Cost Contribution from general customers Opportunity Cost Total Fixed Cost (Including Opportunity Cost) Less: Contribution from School Contract Recoverable Costs Break Even 1400 1000 7000 9400 1400 3500 14300 21840 30000 44300 17340 26960 37033 .

this is not a viable option QUESTION 2 Asset value is 35000 Rs with a life of 5 years . this is a viable option As the expected demand is of 30000 copies.QUESTION 1 Asset value is 50000 Rs with a life of 7 years As the expected demand is of 30000 copies.

this is not a viable option QUESTION 4 .As the expected demand is of 30000 copies. this is a viable option As the expected demand is of 30000 copies. this is a viable option As the expected demand is of 30000 copies. this is not a viable option QUESTION 3 Asset value is 35000 Rs with a life of 5 years As the expected demand is of 30000 copies.

this is not a viable option .Contract for 30000 copies at SP=Rs 0.85 Asset value is 35000 Rs with a life of 5 years As the fixed cost is equal Rs 14300 and from school and outside customers we are getting a contribution of 39190 As the expected demand is of 30000 copies.

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getting a school contract is a viable option .ng a contribution of 39190 Rs (21840+17340).