Scribd Logo
Upload

Welcome to Scribd!

  • Case Analysis-Fly Ash Brick

    Uploaded by

    Amit Dey
    256 views6 pages
    This document provides financial details for a proposed brick manufacturing project, including initial investments, fixed costs, variable costs, sales price, and break-even analysis. It shows that total initial investment is Rs. 10,000,000 with Rs. 6,000,000 as equity investment. Fixed costs are Rs. 5,740,000 per year and variable costs are Rs. 4,500 per 1,000 bricks produced. The break-even point is 2,296,000 bricks or Rs. 16,072,000 in sales. A table then models projected profits and returns on equity at various production capacity utilization levels from 60% to 100%.

    Original Description:

    Accounts

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document provides financial details for a proposed brick manufacturing project, including initial investments, fixed costs, variable costs, sales price, and break-even analysis. It shows that total initial investment is Rs. 10,000,000 with Rs. 6,000,000 as equity investment. Fixed costs are Rs. 5,740,000 per year and variable costs are Rs. 4,500 per 1,000 bricks produced. The break-even point is 2,296,000 bricks or Rs. 16,072,000 in sales. A table then models projected profits and returns on equity at various production capacity utilization levels from 60% to 100%.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    256 views6 pages

    Case Analysis-Fly Ash Brick

    Uploaded by

    Amit Dey
    This document provides financial details for a proposed brick manufacturing project, including initial investments, fixed costs, variable costs, sales price, and break-even analysis. It shows that total initial investment is Rs. 10,000,000 with Rs. 6,000,000 as equity investment. Fixed costs are Rs. 5,740,000 per year and variable costs are Rs. 4,500 per 1,000 bricks produced. The break-even point is 2,296,000 bricks or Rs. 16,072,000 in sales. A table then models projected profits and returns on equity at various production capacity utilization levels from 60% to 100%.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 6

    Initial Investment in Projcet (Rs.

    In'000)
    Items Amount
    Building Modification 1400
    Water Supply Arrangements 100
    Machinery & Equipments 2000
    Trucks 3000
    Payload Machines 1500
    Working Capital 2000
    Total 10,000

    Fixed Cost Per Year (Rs.)


    Items Amount
    Building rent(50000x12) 600000
    Administration 120000
    Office Supply 60000
    Electricity 120000
    Misc 240000
    Salary
    Manager (50000x12) 600000
    Worker 1200000
    Office Assistant 240000
    Watchman 180000
    Drivers 300000
    Depreciation 1600000
    Financing Cost 480000
    Total 5740000
    Varaible Cost per month for 0.20 Million Bricks
    Item Amount
    Fly Ash 250000
    Gypsum 250000
    Lime 300000
    Sand 40000
    Electricity 10000
    Labour 50000
    Total 900000
    VC per '000 Bricks 4500

    RS.
    Selling Price '000 Bricks 7000
    VC per '000 Bricks 4500
    Contribution per '000 Bricks 2500
    Contrbution Margin(P/V Ratio) 35.71%
    FC 5740000

    BEP (unit)'000 Bricks 2296


    BEP (Sales Amount) 16072000
    Selling Price ('000 Bricks)(Rs.) 7000
    Variable Cost ('000 Bricks)(Rs.) 4500
    Fixed Cost(Rs.) 5740000

    QTY(in '000) FC VC TC Sales


    0 5740000 0 5740000 0
    30000000
    100 5740000 450000 6190000 700000
    200 5740000 900000 6640000 1400000 25000000
    300 5740000 1350000 7090000 2100000
    400 5740000 1800000 7540000 2800000 20000000
    500 5740000 2250000 7990000 3500000
    15000000
    600 5740000 2700000 8440000 4200000
    700 5740000 3150000 8890000 4900000 10000000
    800 5740000 3600000 9340000 5600000
    5000000
    900 5740000 4050000 9790000 6300000
    1000 5740000 4500000 10240000 7000000 0
    1100 5740000 4950000 10690000 7700000 0 500 1000 150

    1200 5740000 5400000 11140000 8400000 FC VC


    1300 5740000 5850000 11590000 9100000
    1400 5740000 6300000 12040000 9800000
    1500 5740000 6750000 12490000 10500000
    1600 5740000 7200000 12940000 11200000
    1700 5740000 7650000 13390000 11900000
    1800 5740000 8100000 13840000 12600000
    1900 5740000 8550000 14290000 13300000
    2000 5740000 9000000 14740000 14000000
    2100 5740000 9450000 15190000 14700000
    2200 5740000 9900000 15640000 15400000
    2300 5740000 10350000 16090000 16100000
    2400 5740000 10800000 16540000 16800000
    2500 5740000 11250000 16990000 17500000
    2600 5740000 11700000 17440000 18200000
    2700 5740000 12150000 17890000 18900000
    2800 5740000 12600000 18340000 19600000
    2900 5740000 13050000 18790000 20300000
    3000 5740000 13500000 19240000 21000000
    3100 5740000 13950000 19690000 21700000
    3200 5740000 14400000 20140000 22400000
    3300 5740000 14850000 20590000 23100000
    3400 5740000 15300000 21040000 23800000
    3500 5740000 15750000 21490000 24500000
    3600 5740000 16200000 21940000 25200000
    3700 5740000 16650000 22390000 25900000
    3800 5740000 17100000 22840000 26600000
    3900 5740000 17550000 23290000 27300000
    4000 5740000 18000000 23740000 28000000
    2296 5740000 10332000 16072000 16072000
    CVP Graph
    00000

    00000

    00000

    00000

    00000

    00000

    0
    0 500 1000 1500 2000 2500 3000 3500 4000 4500

    FC VC TC Sales BEP
    Total Investment(Rs.) 10000000
    Equity Investment(Rs.) 6000000
    Selling Price ('000 Bricks)(Rs.) 7000
    Variable Cost ('000 Bricks)(Rs.) 4500
    Fixed Cost(Rs.) 5740000

    Net Income on Various Simulated Volume of Production


    Capacity Utilization 60% 65% 70% 80% 90% 100%
    Sales(in '000 Bricks) 2400 2600 2800 3200 3600 4000
    Revenues 16800000 18200000 19600000 22400000 25200000 28000000
    Variable Cost 10800000 11700000 12600000 14400000 16200000 18000000
    Conribution 6000000 6500000 7000000 8000000 9000000 10000000
    Fixed Cost 5740000 5740000 5740000 5740000 5740000 5740000
    Profit 260000 760000 1260000 2260000 3260000 4260000
    Return on Equity (ROE) 4.33% 12.67% 21.00% 37.67% 54.33% 71.00%

    You might also like