This document contains a case study analysis for Harsh Electricals. It identifies 16 costs including salaries, lease amounts, material costs, and more. It then classifies the costs as either variable costs that change with production quantity, or fixed costs that remain the same regardless of production. Finally, it calculates the per unit costs, selling price, and resulting profit for the company's Standard and Baleno models, showing profits of Rs. 353.517 and Rs. 440.047 per unit respectively.
This document contains a case study analysis for Harsh Electricals. It identifies 16 costs including salaries, lease amounts, material costs, and more. It then classifies the costs as either variable costs that change with production quantity, or fixed costs that remain the same regardless of production. Finally, it calculates the per unit costs, selling price, and resulting profit for the company's Standard and Baleno models, showing profits of Rs. 353.517 and Rs. 440.047 per unit respectively.
This document contains a case study analysis for Harsh Electricals. It identifies 16 costs including salaries, lease amounts, material costs, and more. It then classifies the costs as either variable costs that change with production quantity, or fixed costs that remain the same regardless of production. Finally, it calculates the per unit costs, selling price, and resulting profit for the company's Standard and Baleno models, showing profits of Rs. 353.517 and Rs. 440.047 per unit respectively.
15 Miscellaneous Costs for every additional 1000 units 5,000
16 Distribution Cost (Rs. / Unit) 100 CLASSIFICATION OF COSTS FROM THE CASE S.No. Variable Cost (Rs. / Unit) Amount S.No. Fixed Cost Amount (Rs./Annum)
1 Raw Material 1,778 1 Nagesh Salary 600,000
2 Transportation 8.89 2 Lease 115,200
3 Labour 3.33 3 Electricity 37800
4 Drilling 10 4 Security Deposit 0
5 Distribution 100 5 Depreciation 86,000
6 Salary of Staff 36,000
Members
7 Insurance 25,000
8 Miscellaneous Costs 45,000
Total Fixed Costs 907,200
Fixed Cost / 4000 236.25
Units CALCULATION OF PROFIT FROM THE CASE Standard Baleno S.No. Cost (Rs. / Unit) Model Model 1 Raw material 1778 2185 2 Transportation 8.89 10.925 3 Labour 3.333 2.7778 4 Drilling 10 10 5 Distribution 100 100 Total Variable Cost (Rs. / Unit) 1900.223 2308.703 Fixed Cost (Rs. / Unit) 226.8 226.8 Cost of Electricity 19.45 24.45 Total Cost (Rs. / Unit) 2146.483 2559.953 Selling Price (Rs. / Unit) 2500 3000 Profit (Rs. / Unit) 353.517 440.047