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Case stats

Work ex (years)
Earning per month
Village population
Volume projection per day
Annual operation in days
Price range of new machines
Price of refurbished machine
Depreciation
Bank loan tenure (years)
Interest rate per annum
Loan from relative tenure (in years)
Interest rate per annum
Life of refurbished machine (years)
Additional overhead cost
Working hours (hrs per day)
Manpower
Paper cost (Rs)
Toner life (No of copies)
Toner cost (per kg)
Power consumption per copy (Rs)
Avg market price per copy (Rs)
Expected copies per day
Life of film (years)
Cost of film (Rs)
Life of drum (Years)
Cost of drum (Rs)
Monthly electricity bill
Rent per month
Repair and maintenance cost per year

Q2
4
2500
170000
100
300
50000
35000
7000
5
15%
5%
10%
5
0
13
2
0.2
25000
800
0.04
1
30
2
2000
2
800
250
100
1000

250000

Q1
Q3

Q4
Q5
Q6

Assume there is no beginning and closing inventory


All costs will be taken for per day consumption

Paper cost
Toner cost
Electricty Cost
Prime Cost
Film Cost
Drum Cost
Electricity bill
Rent
Maintenance
Depreciation
Manufacturing Cost=COGS
Sales
Gross margin=operating margin
Less Interest
PBT=PAT

No of copies per year


30000
6000
960
1200
8160
1000
400
3000
1200
1000
7000
21760
30000
8240
3500
4740

Marginal Cost

0.272

Sales
Less Variable Cost
Contribution
Less Fixed Cost
PBT

30000
10560
19440
14700
4740

Break-even by volume (Sales=Variable cost+Fixed cost)

22685

Feasibility of Long run


Price for college students

Yes
0.842

No of copies per year


9000
1800
288
360
2448
1000
400
3000
1200
1000
7000
16048
9000
-7048
3500
-10548

9000
4848
4152
14700
-10548
Can't get break even
No
2.172

A
Plant capacity (in units)
Past year's production
% of total volume
Selling price ($)
Total sales revenue
Fixed Costs
Avg variable cost per unit
Total variable cost
PBT
VC to sales ratio
Variable income to sales
Capacity utilization
Tax (@50% of PAT)
PAT
Dividends
Dividend percent
Retained Earnings

2000000
1500000
100%
1.2
1800000
520000
0.75
1125000
155000
0.63
0.38
75%
77500
77500
50000
32%
27500

Break even volume


Variable cost per unit of selling price
Break even revenue

1155556
63%
1386667

Previous Year
B
C
2000000 2000000 2000000
600000
400000
500000
40%
27%
33%
1.67
1.5
0.4
1002000
600000
200000
170000
275000
75000
1.25
0.625
0.25
750000
250000
125000
82000
75000
0
0.75
0.42
0.63
0.25
0.58
0.38
30%
20%
25%

404762
75%
675952

314286
42%
471429

500000
63%
200000

Scenario 1
A
2000000
510000
26%
1.67
851700
211200
1.25
637500
3000
0.75
0.25
26%

502857
75%
839771

Assumptions
Dividend fixed to 82%
No increase in variable c
No changes in volume %
Increase in volume of C

C
2000000
540000
27%
1.5
810000
339200
0.625
337500
133300
0.42
0.58
27%

2000000
950000
48%
0.8
760000
89600
0.25
237500
432900
0.31
0.69
48%

387657
42%
581486

162909
31%
130327

Assumptions
Dividend fixed to 82%
No increase in variable cost
No changes in volume % of B
Increase in volume of C by 45000

Actual figures
2000000
2000000
100%
1.32
2421700
640000
0.71
1212500
569200
0.50
0.50
100%
284600
284600
233372
82%
51228

Scenario 2
A
B
C
Actual Figures
2000000 2000000 2000000
2000000
715932
417477
866591
2000000
36%
27%
43%
106%
1.67
1.5
0.8
1.32
1195606.8 626215.4 693272.7 2515094.9
211200
339200
89600
640000
1.38
0.69
0.28
0.78
984406.78 287015.4 238312.5 1509734.7
0
0
365360
365360
0.82
0.46
0.34
0.60
0.18
0.54
0.66
0.40
36%
21%
43%
100%
182680
182680
58458
32%
124222
715932
82%
1195607

417477
46%
626215

170667
34%
136533

Assumptions
Dividend fixed to previous value of 32%
Increased variable cost due to wages
No changes in volume % of B
Increase in volume of C by 45000

Scenario 3
A
B
C
2000000 2000000 2000000
2000000
715932
417477
866591
2000000
36%
27%
43%
106%
1.67
1.5
0.8
1.32
1195606.8 626215.4 693272.7 2515094.863
211200
339200
89600
640000
1.38
0.69
0.28
0.78
984406.78 287015.4 238312.5 1509734.654
0
0
365360
365360
0.82
0.46
0.34
0.60
0.18
0.54
0.66
0.40
36%
21%
43%
100%
182680
182680
149798
82%
32882
715932
82%
1195607

417477
46%
626215

170667
34%
136533

Assumptions
Dividend fixed to 82%
Increased variable cost due to wages
No changes in volume % of B
Increase in volume of C by 45000