MA FINAL Project REPORT

Submitted By:
M Mohsin Khan Lodhi 10362
Syed Bilawal Shah 10371
Maaz Ali 10564

Faculty: Sir Muhammad Arsalan

PRODUCT COSTING BY ELIMINATION METHOD
 KFC PRODUCT COST:

A= Zinger Burger
B= Chicken Piece
C= Dinner Roll
D = Drinks
E = Krunch Burger
F = Fries
G = Coleslaw
H = Mighty Zinger Burger
I = Crispy Chicken
J = Large Fries

KFC SELLING PRICE PER PRODUCT:

1 Chicken Piece = 200

1 Coleslaw = 50
1 Regular Fries = 190
1 Large Fries = 230
1 Krunch Burger = 195
1 Zinger Burger = 470
1 Mighty Burger = 595

PRODUCT # 1:
Family Festival 2:
4 Zinger + 4 Chicken Piece + 2 Dinner Rolls+ 1.5 Drinks = 1895

Family Festival 3:
2 Zinger + 2 Kruch Burger + 4 Crispy Chicken + 2 Dinner Rolls + 1.5 Drinks = 1695

For Elimination Method:

4A+4B+2C+1.5D=1895
2A+2E+4B+2C+1.5D=1695
- - - - - -
______________________
2A-2E = 200
Put A Value of Kruch Burger = 195
2A-2(195) = 200
2A-390 = 200
A = 295
Cost of Zinger Burger is Rs 295.

PRODUCT # 2:
1 Kruch Burger + 1 Fries + 1 Drink = 375
1 Kruch Burger + 1 Drink = 270

For Elimination Method:

1E+1F+1D=375
1E +1D=270
- - -
______________
1F = 105
Cost of Fries is Rs 105.

PRODUCT # 3:

1 Kruch Burger + 1 Crispy Chicken + 1 Drinks = 435

1 Kruch Burger + 1 Fries + 1 Drinks = 375

For Elimination Method:

E + B + D = 435
E + F + D = 375
- - - -
_____________
B – F = 60
Putting Fries value:
B -105=60
B=165
Cost of Chicken Piece is Rs 165.

PRODUCT # 4:
1 Zinger Burger + 1 Drink= 375
Put a value of Zinger Burger 295
295+D = 375
D = 80
Cost of Drink is Rs 80.

PRODUCT # 5:

2 Kruch Burger + 2 Drink = 450

2E+2(80) = 450
2E = 450-160
E = 145
Cost of Krunch Burger is Rs 145.

PRODUCT # 6:
1 Mighty Zinger + 1 Regular Drink = 560
H + D = 560
H+80 = 560
H = 560-80
H = 480
Cost of Mighty Zinger is Rs 480.

PRODCUT # 7
2 Crispy Chicken + 1 Fries + 1 Drinks + 1 Coleslaw = 495
2I + 1F + 1D+ 1G = 495
2I + 105 + 80 + 50 = 495
2I + 235 = 495
2I = 495-235
2I = 260
I = 130
Cost of Crispy Chicken is Rs 130.

PRODUCT # 8:
2 Zinger Burger + 2 Crispy Chicken + 1 Large Fries + 2 Drinks = 1175
2A + 2I + 1J + 2D = 1175
2(295) +2(130) + J+ 2(80) = 1175
590+ 260+ J + 160 = 1175
J + 1010 = 1175
J = 1175-1175
J = 165
Cost of Large Fries is Rs 165.

CVP STATEMENT:
 Income Statement
FOR THE MONTH OF NOVEMBER:

Sales Rs 4,500,000
Variable Cost:
Direct labor. 200,000
Direct Material 350,000
Overheads 100,000
Admin 50,000
Total variable Cost. (700,000)
Contribution Margin: 3,800,000
Fixed cost:
Salaries 4,000,000
Advertisement 150,000
Rent 300,000
Utilities 150,000
Total (1,000,000)
Net profit 2,800,000

Yearly Net Profit is 2,800,000 x 12 = Rs 33,600,000