Scribd Logo
Upload

Welcome to Scribd!

  • 6 views

    The Case of A Summer Project Report

    Uploaded by

    vishalanand2206
    The document provides cost and revenue information for a company's distribution of ghee and skimmed milk powder (SMP) through 7 offices over a month. Total monthly costs for the 7 offices are Rs. 420000. Additional fixed costs to set up distribution were Rs. 737000. Assuming sales of 4 metric tons per office per month of each product, the estimated net monthly contribution per office is Rs. 1346.27, resulting in a total contribution of Rs. 9423.86. The break-even time period for the total fixed costs is calculated to be 78.21 months.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content

    You might also like

    The Case of A Summer Project Report

    Uploaded by

    vishalanand2206
    6 views4 pages
    The document provides cost and revenue information for a company's distribution of ghee and skimmed milk powder (SMP) through 7 offices over a month. Total monthly costs for the 7 offices are Rs. 420000. Additional fixed costs to set up distribution were Rs. 737000. Assuming sales of 4 metric tons per office per month of each product, the estimated net monthly contribution per office is Rs. 1346.27, resulting in a total contribution of Rs. 9423.86. The break-even time period for the total fixed costs is calculated to be 78.21 months.

    Original Description:

    Original Title

    8787

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document provides cost and revenue information for a company's distribution of ghee and skimmed milk powder (SMP) through 7 offices over a month. Total monthly costs for the 7 offices are Rs. 420000. Additional fixed costs to set up distribution were Rs. 737000. Assuming sales of 4 metric tons per office per month of each product, the estimated net monthly contribution per office is Rs. 1346.27, resulting in a total contribution of Rs. 9423.86. The break-even time period for the total fixed costs is calculated to be 78.21 months.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    6 views4 pages

    The Case of A Summer Project Report

    Uploaded by

    vishalanand2206
    The document provides cost and revenue information for a company's distribution of ghee and skimmed milk powder (SMP) through 7 offices over a month. Total monthly costs for the 7 offices are Rs. 420000. Additional fixed costs to set up distribution were Rs. 737000. Assuming sales of 4 metric tons per office per month of each product, the estimated net monthly contribution per office is Rs. 1346.27, resulting in a total contribution of Rs. 9423.86. The break-even time period for the total fixed costs is calculated to be 78.21 months.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 4

    The Case of a summer Project Report

    6/23/12

    (1) Cost incurred per office per month: ASM salary : 20000 Sales Representatives : 24000 Travel Bills and Rent : 16000 Total for an office : 60000

    Total cost incurred for seven offices/month=60000*7=420000. (2)Fixed cost incurred to setting up Distribution Channel : 737000
    6/23/12

    Selling price of Ghee to distributor= 84.61RS Selling price of SMP to distributor= 78.26 RS Expense/KG of Ghee and SMP
    Ghee Central sales Tax Transportation cost State Sales Tax on Landing price C & F agent Second Leg Freight Total SMP 4 3 5.0 0.42 0.75 13.18 2.5 3 4.8 0.42 0.75 11.49

    Net margin to the company for Ghee =22-13.18= 8.82. Net margin to the company for SMP =18-11.49= 6.51. 6/23/12

    By assuming sales of 4MTS/month

    Net Margin/office/month : 4000*8.82+4000*6.51=61346.27 Rs. Cost for each office : 60000 Contribution/office : 1346.27 Total Contribution : 9423.86 Total Fixed Cost : 737000 Time period for breakeven : 737000/9423.86
    6/23/12

    :78.21 months

    You might also like