Coolers Units (Add) Inventory Units Invenory Units

Baleno 800 810 10

Standard 3200 3260 60
Total 4000

Component Cost

Components Baleno Standard

Direct Material 2185 1778

Direct Labour 30 25

Direct Expenses Freight 10.925 8.89

Drilling/Unit 10 10

Electricity 15 10

Prime Cost 2250.925 1831.89

Overhead Recovery
Rate 8.90

Overhead Recovery
By Product 267.08 222.57
Cost of Production
Per Cooler 2,518.00 2,054.46
 Manufacturing Overheads COGS Calculation

Factory Rent 100800 Opening Direct Raw Material

Factory Insurance 25000

(Add) Purchase of Raw Material

Factory Electricity 71100

Factory Depreciation 64000

(less) Closing Raw Material

Nagesh Salary 600000

Direct Material Consumed
Set up Labor 36000

Consumables 45000
(Add) Direct Labour

Total 941900

(Add) Direct Expense

Prime Cost

Manufacturing Overheads
Cost of Production
(Add) Opening WIP
(Less) Closing WIP

Cost of goods Manufactured

Add: Opening Inventory of Finished Goods

Less: Closing Inventory of Finished Goods

COGS
Calculation Income Statement

0 Revenue 10400000

Baleno 1769850 COGS 8,588,663.24

Standard 5796280 Gross Margin 1,811,336.76

Baleno 0 SG&A Expense 70900

Standard 0 Operating Income/EBITDA 1,740,436.76

7566130 Depreciation 22000

Baleno 24300 EBIT 1,718,436.76

Standard 81500 Interest Earned 8000

Baleno 29099.25 EBT 1,726,436.76

Standard 94181.4 Tax(12%) 207,172.41

7795210.65 PAT 1,519,264.35

941900
8737110.65
0
0
Office Electricity
8737110.65 16500

SG&A
0 Distribution Cost 40000 Expense

148,447.41 Office Rent 14400

8,588,663.24 Office Depreciation 22000
Coolers Units (Add) Inventory Units Invenory Units
Baleno 304 304 0
Standard 1216 1216 0

Total 1520

Component Cost

Components Baleno Standard

Direct Material 2185 1778

Direct Labour 30 25

Direct Expenses Freight 10.925 8.89

Drilling 10 10

Electricity 15 10

Prime Cost 2250.925 1831.89

Overhead Recovery
Rate 24.54

Overhead Recovery
By Product 736.28 613.57
Cost of Production
Per Cooler 2,987.21 2,445.46
 Minimum number of units where
PAT calculated in cell N17 is closest
to zero
harsh
Manufacturing Overheads COGS Calculation

Factory Rent 100800 Opening Direct Raw Material

Factory Insurance 25000 (Add) Purchase of Raw Material

Factory Electricity 99130

Factory Depreciation 64000

(less) Closing Raw Material

Nagesh Salary 600000

Direct Material Consumed
Set up Labor 36000

Consumables 45000
(Add) Direct Labour

Total 969930

(Add) Direct Expense

Prime Cost

Manufacturing Overheads
Cost of Production
(Add) Opening WIP
(Less) Closing WIP

Cost of goods Manufactured

Add: Opening Inventory of Finished Goods

Less: Closing Inventory of Finished Goods

COGS
Calculation Income Statement

0 Revenue 3952000

Baleno 664240 COGS 3,881,789.44

Standard 2162048 Gross Margin 70,210.56

Baleno 0 SG&A Expense 46100

Standard 0 Operating Income/EBITDA 24,110.56

2826288 Depreciation 22000

Baleno 9120 EBIT 2,110.56

Standard 30400 Interest Earned 8000

Baleno 10921.2 EBT 10,110.56

Standard 35130.24 Tax(12%) 1,213.27

2911859.44 PAT 8,897.29

969930
3881789.44
0
0
Office Electricity
3881789.44 16500

0 Distribution Cost 15200

- Office Rent 14400

3,881,789.44 Office Depreciation 22000
The Objective to find BEP is to Minimize EBIT to 0. This is the least we can go given that the collers
are sold in the ratio of 1:5, i.e. The bundle has to be a multiple of 5
 Classification on the basis of Cost
Different Cost Function Component Behaviour
Salary of Nagesh Manufacturing Overheads Fixed
Factory Manufacturing Overheads Fixed
Rent
Office Administration Overheads Fixed
Standard Manufacturing Raw Material Variable
Raw Material
Baleno Manufacturing Raw Material Variable
Standard Procurement Expense Variable
Frieght Cost
Baleno Procurement Expense Variable
Drilling Bits Service Manufacturing Expense Variable
Standard Manufacturing Labour Variable
Casual Labour
Baleno Manufacturing Labour Variable
Setup Labour Manufacturing Overheads Fixed
Factory Manufacturing Overheads Mixed
Electricity Product Electricity Manufacturing Expense Variable
Office Administration Administration Fixed
Distribution Cost Distribution Distribution Variable
Factory Insurance Manufacturing Overheads Fixed
Consumables(Wires &Screws) Manufacturing Overheads Mixed
Factory Manufacturing Overheads Fixed
Depreciation
Office Administration Overheads Fixed
Inventorial Direct/Indirect
Product Indirect
Product Indirect
Period Indirect
Product Direct
Product Direct
Product Direct Function Components Behavior
Product Direct Manufacturing Overheads Fixed
Product Direct Distribution Raw Material Variable
Product Direct Procurement Labour Mixed
Product Direct Selling Expense
Product Indirect Adminstration
Product Indirect R&D
Product Direct
Period Indirect
Period Direct
Product Indirect
Product Indirect
Product Indirect
Period Indirect
Inventorial Direct/Indirect
Period Direct
Product Indirect