C2 Football

Limited
(CFL)
Working Group C2
PGDM Marketing

21M110- Dhyey Salot

21M123- Pritha Mitra
21M124- Rajat Ramesh Nayak
21M132- Shubham Sood
21M134- Sparsh Parashar
About Us

• C2 football Limited is a company committed to provide the best-in-class

football products

• Our product portfolio consist of Football, Football jerseys, Football shoes

and Goalkeeping gloves

• We supply our products to various retail outlets, sports academies, e-

commerce websites and big brand outlets such as Decathalon.
 Objectives
• Identify Direct, Indirect, Fixed & Variable cost

• Identify strategic role of cost allocation

• Identify method of cost allocation as required

by industry

• Describe the difference between Support

departments & Production departments
 Plant Layout
Staff Entry/Exit gate

Rest room Football production

HR and Admin

Jersey production
Meeting Room
Finance
Logistics area

Shoes Production

Maintenance
Dispatch Gate

Goalkeeping Gloves
Storage yard

R&D, Product
Management Warehouse

Unloading dock

Material Entry Gate Material Exit Gate

 Assumptions:
All inbound logistical
Inventory costs Cost of outbound
costs are negotiated
have not been logistics is included
within the raw
considered per unit
material prices

Basis to rent is
Production is
considered in terms Direct labour wage
considered for only
of percentages rate changes per
8 hrs a day; 6 days
rather than in terms product line
a week
of absolute units

All costs are in INR

 C2
Manufacturing

Football Football Goalkeeping

Football Gloves
Shoes Jersey

Trainer Training Goalkeeping

Shoes
Football Jersey Gloves

Premium
Champion
Pro Shoes Sports Jersey Goalkeeping
Football
Gloves

Premium
Sports Shoes Messi Jersey
Football

Premium
Shoes
 Football Production Process

Cutting Panels
Design & Planning Lamination Process
(Hexagons & Pentagons)

Hand Stitching Soccer

 Printing Process
Balls
 Football
Departments:
Operating Departments Raw material Cost/Trainer Cost/Champion Cost/Premium
Components Football Football Football
Production
Rubber bladders 25 30 50
Logistics
Synthetic lather 12 20 40
Quality (Polyurethane)
Support Departments: Poly cotton 18 30 40
HR and Admin Special Stitches 22 40 50
Finance and controlling
Nylon waxed cord 13 20 30
Maintenance 90 140 210
Total
Product Management and R&D
 Football
Total Cost per Trainer football 1162
Cost Head Amount/day Allocation Base Direct Labour Costs 36
Manufacturing Overheads 1036
Power 2,692 Horsepower of m/c Direct Material 90
Margin @ 30% 349
rent and rates 769 Floor space Selling Price 1511

Total Cost per Champion football 2288

Insurance machinary 1,044 Cost of m/c
Direct Labour Costs 75
Depreciation on Manufacturing Overheads 2073
Machinery 2,088 Cost of m/c
Direct Material 140
Margin @ 30% 686
lighting 769 No of lights
Selling Price 2974

Transpotation, Shipment Total Cost per Trainer football 3383

& Distribution 2,308 Number of units Direct Labour Costs 150

Shop head salaries Manufacturing Overheads 3023

(35lpa) 3,205 Hour worked Direct Material 210
hours worked Margin @ 30% 1015
staff salaries (3*10lpa) 641 Selling Price 4398
 Jersey Production Process

Design & Planning Cutting Fabrics Stitching Components

Finishing  Printing Process

 Jersey
Departments:
Raw material Cost / Cost / Sports Cost / Messi
Components Training Jersey Jersey
Operating Departments Jersey
Production
Logistics Rice knit fabric 40 55 70
Quality
Thread 3 5 10
Support Departments:
HR and Admin Printing Slate 20 35 50
Finance and controlling
Maintenance Elastane 13 16 20
Product Management and R&D
Stitching needles 12 14 30
 Jersey
Total Cost per Training Jersey 1390
Cost Head Amount/day Allocation Base Direct Labour Costs 46
Manufacturing Overheads 1163
Horsepower of
Power 3,077 m/c Direct Material 88
Margin @ 20% 260
rent and rates 2,462 Floor space Selling Price 1557

Insurance Total Cost per Sports Jersey 1615

machinary 1,004 Cost of m/c
Direct Labour Costs 69
Depreciation on Manufacturing Overheads 1421
Machinery 2,510 Cost of m/c
Direct Material 69
Margin @ 20% 323
lighting 769 No of lights
Selling Price 1938
Transpotation,
Shipment & Total Cost per Messi Jersey 2016
Distribution 3,462 Number of units Direct Labour Costs 208
Shop head salaries Manufacturing Overheads 1628
(35lpa) 3,205 Hour worked Direct Material 180
staff salaries hours worked Margin @ 20% 403
(4*10lpa) 1,154 Selling Price 2419
 Shoes Production Process

Design & Planning Cutting Fabrics Fabric is stitched

Finishing  Sole fitted with Fabric

 Shoes
Departments:
Raw material Cost / Cost / Cost / Cost / Pro
Components Shoes Sports Premium Shoes
Operating Departments Shoes Shoes
Production
Logistics Fabric 25 50 55 35
Quality
Thread 2 7 10 4
Support Departments:
HR and Admin sole 12 30 45 17
Finance and controlling Stitching
Maintenance needles 13 25 30 15

Product Management and R&D Total 52 112 140 71

 Shoes
Cost Head Amount/day Allocation Base
Power 2,692 Horsepower of m/c
rent and rates 769 Floor space
Insurance machinary 1,044 Cost of m/c

Depreciation on Machinery 2,088 Cost of m/c

lighting 769 No of lights
Transpotation, Shipment &
Distribution 2,308 Number of units

Shop head salaries (35lpa) 3,205 Hour worked

staff salaries (3*10lpa) 641 hours worked
 Shoes

Total Cost per Shoes 1106 Total Cost per pro shoes 1288
Direct Labour Costs 26 Direct Labour Costs 33
Manufacturing Overheads 1027 Manufacturing Overheads 1184
Direct Material 52 Direct Material 71
Margin @ 20% 221 Margin @ 20% 258
Selling Price 1327 Selling Price 1545

Total Cost per Sports shoes 2210 Total Cost per Premium Shoes 2811
Direct Labour Costs 44 Direct Labour Costs 44
Manufacturing Overheads 2054 Manufacturing Overheads 2627
Direct Material 112 Direct Material 140
Margin @ 20% 442 Margin @ 20% 562
Selling Price 2652 Selling Price 3374
 Gloves Production Process

Design & Planning Latex dipping Leaching & Beading

Stripping  Vulcanization
 Goalkeeping Gloves
Departments:
Raw material Cost / Cost / Premium
Components Goalkeeping Goalkeeping
Operating Departments Gloves Gloves
Production
lather 30 35
Logistics
Quality latex 20 25
Support Departments: Polyurethane 25 30
HR and Admin Stitching needls 25 35
Finance and controlling
Total 100 125
Maintenance
Product Management and R&D
 Goalkeeping Gloves
Cost Head Amount/day Allocation Base
Horsepower of Total Cost per Premium Goalkeeping Gloves 3060
Power 2,692 m/c Direct Labour Costs 88
Manufacturing Overheads 2847
rent and rates 1,923 Floor space Direct Material 125
Insurance Margin @ 20% 612
machinary 1,044 Cost of m/c Selling Price 3672
Depreciation on
Machinery 2,088 Cost of m/c
Total Cost per Goalkeeping Gloves 2370
lighting 769 No of lights
Direct Labour Costs 53
Shop head Manufacturing Overheads 2217
salaries (35lpa) 3,205 Hour worked Direct Material 100

Transpotation, Margin @ 20% 474

Shipment & Selling Price 2843
Distribution 1,923 Number of units
staff salaries hours worked
(3*10lpa) 641
THANK
YOU