Sales

Shirt (A)
(units)
Sale

Shirt (B)
(units)

3,500

3,800

Material to be Consumed Per Shirt

P:C Ratio
Cloth
Coller
Button
Thread(1000m)

Shirt (A)

Shirt (B)

40:60
1.5m
1
5
10m

50,50
1.5m
1
5
10m

Finished Goods @ Beginning and End

Opening (1-07-08)
Closing (31-07-08)

Shirt (A)

Shirt (B)

900
400

200
1,200

Cost of Material Used At Each Shirt

Cloth
Coller
Button
Thread(1000m)

Shirt (A)
(RS)
60/meter
15/Coller
1/Button
90/Roll

Shirt (B)
(RS)
40/meter
15/Coller
1/Button
90/Roll

Opening & Closing Balance of Material (Cloth)

Shirt A
Shirt B

Opening

Closing

600
1,000

1,100
2,000

Opening & Closing Balance Other Material

Opening
330
1,100
75

Coller
Button
Thread(1000m)

Closing
280
800
50

Cost of Sewing,Packaging,Finishing
Sewing
Packaging
Finishing

30/per hrs
20/per hrs
RS2/per Shirt

Direct Labour Hour taken per Shirt

Sewing
Packaging
Finishing

Sewing
Packaging
Finishing

Shirt (A)
Hours
1
0
0

Shirt (B)
Hours
1
0
0

Total Direct Labour Hr Taken

A
1,500
200
150

Working (Labor Hours)

A
(30/60)
(4/60)
(3/60)

B
2,000
200
200

Working
A
3000*0.5
3000*0.067
3000*0.05

Factory Overheads

Rent
Supervisor
Electricity
Power
Maintenance
Gas
Consumables
General Expense

(RS)
20,000
7,500
10,000
4,400
2,100
2,800
3,400
19,600

W1 Depreciation
Asset
=
Rate @
Dep Amount

Depriciation

1,375

Total

71,175

Calculation of Per Unit Cost

Shirt (A)

Shirt (B)

Cloth
Coller
Button
Thread(100/1000*90)
Labour
Sewing
Packaging
Finishing
F.O.H
Total Cost Per Unit

90
15
5
9

60
15
5
9

15
1
2
38.47
176

15
1
2
29.64
137

Profit @ 30%

52.8

41.1

Sale Price

230

180

Sensitivity Analysis Shirt (A)

Formula
SP(Sale Price)
Quantity
Variable Cost
Fixed Cost
Profit

SP*Q=V.C*Q+F.C+Profit
230
3,500
143
32,795
271,705
SPxQ=V.CXQ+F.C+Profit
230X3500=143x3500+32795+271705
805000=805000

To Calculate Sale At Zero Profit

Formula

X=V.C*Q+F.C+Profit
X=143*3500+32795+0

Sale

533295

To Calculate Sale Price Sensitivity

Formula

X*Q=V.C*Q+F.C+Profit
x*3500=143*3500+32795+0

Sale Price Per unit

Sensitivity in %

152.37
Working
230-152.37=77.63
77.63/230*100=33.75%

33.75%

To Calculate Quantity Sensitivity

Formula

Sp*x=V.C*x+F.C+Profit
230*x=143*x+32795+0

Quantity
Sensitivity in %

376(units)
89.25%

Working
3500-376=3124
3124/3500*100=89.25%
77.16/142.84*100=54.01%

To Calculate Variable Cost Sensitivity

Formula

Sp*Q=x*Q+F.C+Profit
230*3500=X*3500+32795+0

Variable Cost

220.63

Sensitivity in %

6.55%

Working
230-220.63=9.37

9.37/143*100=6.55%

To Calculate Fixed Cost Sensitivity

Formula

Sp*Q=V.C*Q+X+Profit
230*3500=142.84*3500+X+0

Fixed Cost
Sensitivity in %

Sale
Sale Price Per Unit
Quantity
Variable Cost
Fixed Cost

304500
828.00%

Working
304500-32795=271705
271705/32795*100=828%

533,295
33.75%
89.25%
6.55%
828%

Sensitivity Analysis Shirt (B)

Formula
SP(Sale Price)
Quantity
Variable Cost
Fixed Cost
Profit

Formula

SP*Q=V.C*Q+F.C+Profit
180
3,800
113
32,795
221,805

SPxQ=V.CXQ+F.C+Profit
180X3800=113x3800+32795+221805
684000=684000

To Calculate Sale At Zero Profit

Formula
Sale

X=113*3800+32795+0
462195

To Calculate Sale Price Sensitivity

Formula

X*Q=V.C*Q+F.C+Profit
x*3800=113*3800+32795+0

Sale Price Per unit

Sensitivity in %

121.63
Working
180-121.63=58.36
58.63/180*100=32.42%

32.42%

To Calculate Quantity Sensitivity

Formula

Sp*x=V.C*x+F.C+Profit
180*x=112*x+32795+0

Quantity
Sensitivity in %

482(units)
87.31%

Working
3800-482=3318
3318/3800*100=87.31%

To Calculate Variable Cost Sensitivity

Formula

Sp*Q=x*Q+F.C+Profit
180*3800=X*3800+32795+0

Variable Cost

171.36

Sensitivity in %

7.63%

Working
180-171.36=8.63
8.63/113*100=7.63%

To Calculate Fixed Cost Sensitivity

Formula

Sp*Q=V.C*Q+X+Profit

180*3800=113*3800+X+0
Fixed Cost
Sensitivity in %

Sale
Sale Price Per Unit
Quantity
Variable Cost
Fixed Cost

254600
676.00%

462,195
32.42%
87.31%
7.63%
676%

Working
254600-32795=221805
221805/32795*100=676%

ng (Labor Hours)
B
(30/60)
(3/60)
(3/60)

B
4000*0.5
4000*0.05
4000*0.05

250,000
0
(250000*5%/12)

1,375