1) calculation of future maintainable profit

Particulars 2011 2012 2013 2014

Sales 1,20,00,000 1,44,00,000 1,72,80,000 2,07,36,000

Less: cogs 1,09,20,000 1,31,04,000 1,57,24,800 1,88,69,760
Gross profit 10,80,000 12,96,000 15,55,200 18,66,240
Less: expenses 3,24,000 3,88,800 4,66,560 5,59,872
Future maintainable profit 7,56,000 9,07,200 10,88,640 13,06,368
Less: capital employed 1,62,500 1,62,500 1,62,500 1,62,500
excess fmp 5,93,500 7,44,700 9,26,140 11,43,868

excess fmp weight product

5,93,500 4 23,74,000
7,44,700 3 22,34,100
9,26,140 2 18,52,280
11,43,868 1 11,43,868
76,04,248

Average 7604248/10= 7,60,424.8

Valuation of goodwill 760424.8 * 3= 22,81,274.40

Pizza share of goodwill 22,81,274.40 * 2/ 8 = 5,70,318.60