Normal

Current Results
Average monthly normal clutch gear demand 4,800
Selling price per normal clutch gear ₹ 10.50
Annual worker labour cost (fully-loaded, including benefits) ₹ 57,500 6
Annual machine and tool depreciation (existing machines) ₹ 14,355
Annual rental cost (including building lease) ₹ 33,000
Annual lighting/ heating/ utilities cost ₹ 29,808
Direct material cost per normal clutch gear ₹ 1.45
Variable energy cost per normal clutch gear ₹ 0.18
Variable supplies cost per normal clutch gear ₹ 0.11
Annual administrative costs ₹ 7,200
Estimated Information
Increase in fixed utility costs due to new Machine ₹ 864
Material costs (per copper-plated pressure plate clutch gear) ₹ 10.44
Utility costs per copper-plated pressure plate clutch gear ₹ 0.46
Supply costs per copper-plated pressure plate clutch gear ₹ 0.14

Only Normal FltNormal + Copper Flywheel

Selling Price ₹ 10.50 ₹ 91.00

Annual Sales (Units) 57600 1517
Revenue ₹ 604,800 ₹ 742,847
Variable Costs
Direct material cost per normal clutch gear ₹ 83,520 ₹ 99,357
Variable energy cost per normal clutch gear ₹ 10,368 ₹ 11,339
Variable supplies cost per normal clutch gear ₹ 6,336 ₹ 6,715
Total Variable Costs ₹ 100,224 ₹ 117,412
Contribution Margin ₹ 504,576 ₹ 625,435
Fixed Costs
Annual worker labour cost (fully-loaded, including benefits) ₹ 345,000 ₹ 460,000
Annual machine and tool depreciation (existing machines) ₹ 14,355 ₹ 19,355
Annual rental cost (including building lease) ₹ 33,000 ₹ 33,000
Annual lighting/ heating/ utilities cost ₹ 29,808 ₹ 30,672
Annual administrative costs ₹ 7,200 ₹ 7,200
Total Fixed Costs ₹ 429,363 ₹ 550,227
Gross Profit Margin ₹ 75,213 ₹ 75,208
 Copper

350
91
workers ₹ 57,500 per worker 8 workers
₹ 19,355
₹ 33,000
₹ 30,672
₹ 10.44
₹ 0.64
₹ 0.25
₹ 7,200

ormal + Copper Flywheel