BUSINESS SCHOOL

Microeconomics
Final Project (III)
Cost Analysis

Submitted by:
Moater Imran L1S19BBAM0137
Anam Khan L1S19BBAM0169
Abdul Qadir L1S19BBAM0752
M pehlwan L1S19BBAM0494

Submitted to:
Dr. Kanwal Zahra

Cost Analysis

Fixed Cost Detail

Cost of Sales 2019 2017 2016
Depreciation & 20,00,00 956,987 769,765
Amortization
Utilities 295,567 285.676 81.745
Insurance 121,529 118,738 110,812
Transportation 69,564 61,069 58,976
Rent 345,674 237,756 213,345
High staff salaries 897,909 897,909 897,909
Social security 354,870 354,870 354,870
Advertising 17,12111 8,00,000 7,00,000
Interest 783,790 780,568 78,943
Equipment 789,879 789,879 789,879
Property Tax 789,987 784,786 770,564
Employ Benefits 690,897 690,879 690,879
Total 98,00,000 92,87,876 89,76,987

Explanation

 Fixed costs are expenditures which are independent in case of production

 Cost are vary due to the facts of supply and demand. These costs are also relatively
connected with supply and demand relation. The demand of coke decreased at the year
when other sodas were getting in the trend.
 According to the table shown in the above fixed cost have been increasing over the years
(2017-2019)
 Salaries, equipment and employ benefits remain constant.
 In 2019 Fixed costs increased due to the high increase of advertising expense.