Cost Information

Cost Incured (per Fixed/ Direct/ Relevant/I

Sr No Cost Item annum/ per unit) Variable Indirect rrelevant

1 Photocopy Machine (depreciation) 7000 Fixed Direct Relevant

2 Financing Cost- From Cousin@10% 3500 Fixed Direct Relevant
3 Drum and Film 1400 Fixed Direct Relevant
4 Shop Rent 1200 Fixed Indirect Irrelevant
5 Shop Electricity bill 3000 Fixed Indirect Irrelevant
6 Repair and Maintenance 1000 Fixed Direct Relevant
7 Paper Cost 0.2 Variable Direct Relevant
8 Toner Cost 0.032 Variable Direct Relevant
9 Power consumption 0.04 Variable Direct Relevant
Total Fixed& Relevant Cost 12900
Foregone salary 30000
Total Fixed Cost (per annum) 42900
Total Variable Cost (per unit) 0.272

Price/ Unit 1 0.75 0.5 0.33

Variable Cost 0.272 0.272 0.272 0.272
Contribution per unit 0.728 0.478 0.228 0.058
Break-Even point (In Units) 17720 26987 56579 222414
Projected Annual photocopies 30000

a Price at which he reaches break even

exactly in one year 0.702

& Forgone Salary

New Total Fixed Costs
30000
42900

b Price/ Unit
Variable Cost
Contribution per unit
1
0.272
0.728
0.75
0.272
0.478
0.5
0.272
0.228
0.33
0.272
0.058
Break-Even point (In Units) 58929 89749 188158 739655
Projected Annual photocopies 30000
Price at which he reaches break even 1.702
exactly in one year

Loan from bank 5250

Forgone Salary 30000

c New Total Fixed Costs

Price/ Unit
Variable Cost
44650
1
0.272
0.75
0.272
0.5
0.272
0.33
0.272
Contribution per unit 0.728 0.478 0.228 0.058
 Break-Even point (In Units) 61332 93410 195833 769828

Fixed Cost (Per annum)

New Machine expense per annum
(life of 10 years) 5000

d Financing Cost (Cousin at 10%) 5000

New loan
amount=
50000
Drum & Film 1400
Forgone Salary 30000
Total new fixed costs 41400
Price/ Unit 1 0.75 0.5 0.33
Variable Cost 0.272 0.272 0.272 0.272
Contribution per unit 0.728 0.478 0.228 0.058
Break-Even point (In Units) 56868 86611 181579 713793

Annual profit 24000

Total Fixed Costs 42900

e Price/ Unit
Variable Cost
Contribution per unit
1
0.272
0.728
0.75
0.272
0.478
0.5
0.272
0.228
0.33
0.272
0.058
Break-Even point (In Units) 91896 139958 293421 1153448

Total Fixed cost 42900

f Total variable cost for 60 per day

and 300 days in a year
Total Revenue from priniting
4896

13500
Profit/ loss -34296

Total Fixed cost 42900

Retail Institution
Selling Price/Unit 1 0.75

g
Variable Cost/Unit 0.272
Contribution/Unit 0.728 0.478
Total average Contribution 0.603
(considering equal no of sales
Break Even Point 71144

Delivery cost 1500

New Total Fixed Costs 44400

h Price/ Unit 1 0.75 0.5 0.33

h Variable Cost
Contribution per unit
0.272
0.728
0.272
0.478
0.272
0.228
0.272
0.058
Break-Even point (In Units) 60989 92887 194737 765517

Office boy fee 18000

New Total Fixed Costs 60900

i Price/ Unit
Variable Cost
Contribution per unit
1
0.272
0.728
0.75
0.272
0.478
0.5
0.272
0.228
0.33
0.272
0.058
Break-Even point (In Units) 83654 127406 267105 1050000