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END TERM
EXTERNAL ASSIGNMENT
MARCH-APRIL 2024
ON
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New Total Contribution: Rs. 5.00 * 80,000 = Rs. 4,00,000
4. New Total Profit:
New Total Contribution: Rs. 4,00,000
Total Fixed Cost: Rs. 2,50,000
New Total Profit: Rs. 4,00,000 - Rs. 2,50,000 = Rs. 1,50,000
After assessing the figures, the enterprise ought to upgrade dealers' edge by 25% to preserve benefit instead of cut
deals cost by 5%. The method of reasoning is:
comparable to public transportation
Maximizing Profit:
Expanding the dealers' margin by 25% yields Rs. 30,000, compared to Rs. 1,50,000 from bringing down the sales price by
5%.
Effect on Sales:
Bringing down costs may increment deals volume, but in case they do not balanced the lower price, profit may not rise.
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Alternatively, expanding dealers' margins may raise sales and profitability.
In a competitive market with furious competition, the next offering cost can offer assistance the company
keep up a recognition of higher quality or esteem than competitors who may be diminishing costs. The
organization can keep up its offering cost and energize merchants to offer more by boosting their benefit.
At 60% utilization, production can be raised to meet request development from expanding merchant
margins.
QUESTION 2.
AIRTEL ltd
KEY FINANCIAL RATIOS OF REALINACE LT INDIA (in Rs. MAR 23 MAR 22 MAR 21
Cr.)
CURRENT RATIO (X) 1.5 1.2 2.5
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Airtel Ltd. insights.
The proportion has persistently climbed from 1.2 to 1.5 for Airtel. Changes in company liquidity make short-
term commitments easier to meet.
ROCE expanded 10% to 15% in three a long time. Airtel's judicious monetary administration looks to have
expanded operational proficiency and benefit.
Normal nett benefit edge climbed from 8% to 12%. Airtel may have benefitted from lower costs or higher
pay.
Airtel's debt-to-equity proportion declined from 1.5 to 1.2, demonstrating less obligation financing. Trade
intrigued costs and budgetary hazard may diminish with this advancement.
Return on equity expanded from 12% to 18% in three a long time. Way better Airtel shareholder returns
show budgetary victory.
Basic EPS rose from 5 to 8 rupees in 3 a long time. Rising Airtel per-share benefits advantage shareholders.
The P/B ratio has climbed from 1.2 to 1.5, esteeming Airtel more than its book esteem. Suspect speculator
certainty or superior budgetary comes about.
Asset Turnover Proportion rose from 0.8 to 1.0. Comes about appear Airtel upgraded resource income and
operational effectiveness.