Group 2: Dakshayani Biscuits (Cost Sheet)

COST SHEET FOR THE YEAR ENDED 31 MARCH 2017 (45000 UNITS)
PARTICULARS PER UNIT AMOUNT (IN RS)
DIRECT MATERIAL
flour 3.38 152000
sugar 0.67 30000
salt 0.22 10000
glucose 0.44 20000
starch 0.11 5000
malted milk 0.33 15000
TOTAL 5.16 232000
DIRECT LABOUR 1.56 70000
DIRECT EXPENSES 0.54 24250
PRIME COST 7.25 326250
FACTORY OVERHEAD
power 0.33 15000
indirect wages 0.11 5000
factory stationery 0.11 5000
factory maintenance 0.16 7000
factory insurance 0.33 15000
electricity 0.11 5000
depriciation 0.57 25750
FACTORY COST 8.98 404000
OFFICE &ADMINISTRATION OVERHEAD
bank charges 0.22 10000
office rent 0.18 8000
general expenses 0.33 15000
COST OF PRODUCTION 9.71 437000
SELLING & DISTRIBUTION OVERHEAD
packaging rates 0.11 5000
salary of salesman 0.03 1480
delivery van maintenance 0.09 4000
advertisement 0.89 40000
COST OF SALES 10.83 487480
PROFIT (15% ON SALES) 4.64 208920.00
SALES 15.48 696400.00
 MARGINAL COST SHEET
FOR THE YEAR ENDED 31 MARCH 2017
45000 UNITS

Particulars Amount Cost per unit 1)

Sales 696400 15.48 2)
Variable cost: 3)
Direct material 232000 5.16 4)
Direct Labor 70000 1.56 5)
Direct expenses 24250 0.54
Packaging Rate 5000 0.11
Total Variable Cost 331250 7.37
Contribution 365150 8.11
Fixed cost:
Power 15000 0.33
Indirect wages 5000 0.11
Factory Maintenance 7000 0.16
Factory Stationary 5000 0.11
Factory insurance 15000 0.33
Electricity 5000 0.11
Depreciation 25750 0.57
Bank Charges 10000 0.22
Office Rent 8000 0.18
General Expenses 15000 0.33
Advertisement 40000 0.89
Salary of Sales man 1480 0.03
Total Fixed Cost 152230 3.37
Profit 212920 4.74
PROFIT VOLUME RATIO 52.43
BREAK EVEN POINT(UNITS) 18770.654
BREAK EVEN POINT (AMT) 290327.19
MARGIN OF SAFETY (UNITS) 26254.007
MARGIN OF SAFETY (AMT) 406072.81

1) P/V RATIO = (CONTRIBUTION/SALES)*100

2) BREAK-EVEN POINT (UNITS)= FIXED COST/CONTRIBUTION PER UNIT

3) BREAK-EVEN POINT (AMT)= FIXED COST/ P/V RATIO

4)MARGIN OF SAFETY (UNITS) = PROFIT / CONTRIBUTION PER UNIT

5) MARGIN OF SAFETY ( AMT) = PROFIT / P/V RATIO

Units Fixed cost Variable cost Total Cost Total Revenue
0 152230 0 152230 0
11250 152230 82912.5 235142.5 174150
22500 152230 165825 318055 348300
33750 152230 248737.5 400967.5 522450
45000 152230 331650 483880 696600
 Data
Units Sum - Fixed cost Sum - Variable cost Sum - Total Cost Sum - Total Revenue
0 152230 0 152230 0
11250 152230 82912.5 235142.5 174150
22500 152230 165825 318055 348300
33750 152230 248737.5 400967.5 522450
45000 152230 331650 483880 696600
Total Result 761150 829125 1590275 1741500

800000

700000

600000

500000
Data
400000 Column C
Column D
300000 Column E

200000

100000

0
Units 0 11250 22500 33750 45000
 Data
Column C
Column D
Column E

0 45000