Hindustan IT Service

(1) Goals of the company

1.1) To expand their services to pan India.

1.2)To generate more leads and sales
1.3) To maximize profit of the company.
1.4) To build's company's identity by providing best services in the industry.
Total Utility
500
(2) Total Utility
400
300

Utility
200
1 meter of cable Utility per meter
100
Copper cable 1
0
CAT6 cable 3 280 300 320 340 360 380 400
OFC 5 Quantity

3) Marginal utility

Month Quantity Total Utility Marginal Utility

January 300 300 300
February 350 340 40
March 380 370 30
April 400 390 20
May 420 390 0
June 450 360 -30

4) Posibility of Combo:
Combination of two differe types of cable CAT6 and OFC for more economical approach
Decision Making:
from the given graph, it is clearly visible that with the increase in the quantity, marginal utility is decreasing. We can try
to maintain the maximum utility by offering combos .

(5) Factors affecting Demand/Sale

Increasing digitalization
External factors such as Covid-19
Growing competiton in the industry

(6) Price Elasticity of Demand

ELASTICITY OF DEMAND =PERCENTAGE CHANGE IN QUANTITY/ PERCENTAGE IN PRICE
ELASTICITY OF DEMAND =PERCENTAGE CHANGE IN NO. OF PROJECTS/ PERCENTAGE IN PRICE

Approx. price of a percentage change percentage

Month No. of Projects project(in lac) in no. of projects change in price
January 7 10 0 0
February 6 12 0.1428 -0.2
March 5 14 0.1667 -0.1667
April 4 15 0.2 -0.0714
May 3 16 0.25 -0.0666
June 1 17 0.6667 -0.0625

Decision Making:
From the graph, it is clearly visible that as the price of a project is increasing, the demand is decreasing. So,
the company should decide an optimal price where it can achieve maximum profit and demand.

PRICE
10000
(7) Cross Elasticity of demand 9000
8000
7000
Substitute
6000
5000
QUANTITY PRICE 4000
10 7500 3000
20 8250 2000
32 8750 1000
41 9500 0
5 10 15 20 25 30 35 40 45

8) SUPPLY CURVE Chart Title

25000
QUANITY PRICE 20000
20 15000 15000
10000
50 18500 5000
70 23000 0
1 2 3

9) linear trend method QUANITY PRICE

Time Sales
2018 4.01 crores
2019 4.95 crores
2020 5.59 crores Chart Title
35
10) least cost factor combination 30
25
20
Capital Labour 15
10
2.1 18 5
0
1 2

Capital Labour
 30
25
20
15
10
5
3.4 24 0
1 2
5.89 29
Capital Labour

13) MARGINAL COST CURVE

QUANTITY OF FINSIHED AVERAGE TOTAL COST PER AVERAGE VARIABLE C AVERAGE FIXED COSMARGINAL COST
175 2200 1490 725 400
245 1560 1250 450 1100
345 1450 1100 320 1390
565 1590 1180 305 1620
620 1560 1230 236 1390

14) MARGINAL PRODUCTION

NUMBER OF CONSUMERTOTAL PRODUCTION AVERAGE PODUCTIONMARGINAL PRODUCTION

5 85 17 45 350
7 195 24 45 300
9 265 30.9 12 250
200
15 298 24 5 150
100
16) COST BENEFIT ANALYSIS 50
0
4 6
COST (MONTHLY) PARTICULAR Column1
TOTAL
2250 Insurance (per employee) Loyalty of employees MARG
1590 Food (day) Health of employees
2290 Food and Refreshment (oveProductivity
5495 Transportation (petrol) (moEfficiency

17) ECONOMIES OF SCALE (BUY MATERIAL FROM COMPANY) (B2B)

(18) Fixed cost, Variable Cost, Total cost, Marginal Cost, average marginal cost in short run

Month Fixed Cost Variable Cost Total Cost

January 400000.00 470000.00 870000
February 400000.00 450000.00 850000
March 400000.00 500000.00 900000
April 400000.00 510000.00 910000
May 400000.00 550000.00 950000
June 400000.00 550000.00 950000

(19) Total Production, Marginal production, Avg. production in long run and short run

Cable laying in mtr (Total

No. of workers production) Marginal Production Average Production
3 40 0.00 13.33
5 70 15.00 14.00
9 110 10.00 12.22
13 140 7.50 10.77
17 160 5.00 9.41

(20) Type of market for the company

It is Perfect competion as it has many buyers and sellars
 Total Utility

320 340 360 380 400 420 440 460

Quantity

Marginal Utility
350
300
250
200
Utility

150
100
50
0
1 2 3 4 5 6
-50
Quantity

creasing. We can try

 18

Approx. Price of a Project

16
14
12
Elasticity 10
8
6
-0.714 4
-1 2
0
-2.80112 0 1 2 3 4 5 6 7 8
-3.753754 No. of Projects
-10.6672

30 35 40 45

Labour
 3

Labour

marginal cost curve

2500
GINAL COST 2000
1500
1000
500
0
1 2 3 4 5

QUANTITY OF FINSIHED PRODUCT (IN THOUSAND)

AVERAGE TOTAL COST PER THOUSAND
AVERAGE VARIABLE COST PER THOUSAND
AVERAGE FIXED COST PER THOUSAND
Chart Title COST
MARGINAL

350
300
250
200
150
100
50
0
4 6 8 10 12 14 16

TOTAL PRODUCTION AVERAGE PODUCTION

MARGINAL PRODUCTION

600000.00

500000.00

400000.00

300000.00

200000.00

100000.00
400000.00

300000.00

200000.00

100000.00

0.00
January February March April May June

Chart Title
200
150
Axis Title

100
50
0
1 2 3 4 5
Axis Title
 Submitted By: Khushbu Soni
211030
MBA FT(A)

Undertaking:

To whomsoever it may concern:

I Khushbu Soni declare that this assignment is my original work and not copied from
found similar to other resources, I shall be held responsible of the action taken the

Dated: 07/09/2021
ginal work and not copied from anywhere/anyone. If
onsible of the action taken thereof.
Goals of the Company
Utility, Diminishing Marginal Utility, Possibility of combo, Consumer’s probable budget for a flagship product
Factors affecting demand/sale
Price Elasticity of demand
Cross Elasticity of demand
Ideal method of measurement of elasticity for product
Factors affecting supply of raw materials of product
Price Elasticity of supply
Probable method for measurement of Price Elasticity of supply
Possibility of automated market mechanism for Price determination.
Appropriate forecasting method for product
Total production, marginal production, average production in long run and short run.(3/5 years)
Least cost factor combination
Fixed cost, variable cost, total cost, average cost, marginal cost and average marginal cost in short run
Long run cost behavior
Identify dominating economies and diseconomies to scale
Total revenue, average revenue, marginal revenue
Break-even point
Identify the type of market for this product and company
Profit/loss in the short run or long run for this product
Reasons for market failure in price determination.
ship product