1ST Method

PRODUCTION CAPACITY CALCULATION

AVERAGE NO. OF BAGS THAT CAN BE MADE ON THE MACHINE PER MIN 60 MIN 12 HR 25 DAYS

(Based on a 12 hrs. working on a daily basis and 25 days working / month) 80 4800 57600 1,440,000
COST OF PRODUCTION
S.NO DETAIL COST
1 LABOUR 1 SKILLED @ 15,000/MONTH AND 2 UNSKILLED @ 8,000/MONTH 23,000
2 POWER TOTAL 9 KW POWER (PER MONTH) 8,500
3 RENTALS 1000 SQ FEET AREA 6,000
BANK INTREST ON
4 18 LACS @ 14% PER ANNUM 39,000
LOAN
5 MISC ADMINISTRATION AND OTHER EXPENSES 18,000
TOTAL EXPENSES FOR THE MONTH 94,500

1 COST OF PRODUCTION TOTAL EXP PER MONTH 94,500

2 PRODUCTION CAPACITY PER MONTH 1,440,000
AVERAGE PRODUCTION COST OF EACH BAG 0.066

2ND Method
PRODUCTION CAPACITY CALCULATION

60gsm fabric bag 25Days Per

60 gsm Bag Size Each bag Wt. 60 Min per hr. 12Hr Per Day
size 12” x 16 MONTH

AVERAGE (Kg) material

processing (based on a 12 Each Bag WT.14 12×16bag wt
hr working on a daily basis GRAMS FOR 60 12×16 Bag 14gr 1000gr/14gr 80 Kg 960 Kg 24,000 Kg
and 25 days working / GSM 1kg=71bag
month)

EXPENSE
D-CUT NON-WOVEN BAGS U-CUT NON-WOVEN BAGS
DESCRIPTION

Average cost of Raw 114 per Kg 114 per Kg

material
Per month cost of 114 x 24,000 = 27,36,000 114 x 24,000 = 27,36,000
material
Production cost per 94,500 94,500
month
Total expenses for one
month with material 2,830,500 2,830,500

10% of 24,000 kg = 2400 Kg (wastage can also sale at low

Total wastage 5 % of 24,000 Kg = 1200 Kg (Wastage can also sale at low price) price)
After wastage ready
material 22,800 Kg 21,600 Kg

Average selling price of 135 (Selling price depend on the market) 145 (selling price depends on the market)
Bag per Kg
Total selling price 135 x 22,800 = 30,78,000 145 x 21,600 = 31,32,000
Net Realization per 30,78,000 -28,30,500 = 2,47,500 31,32,000 - 28,30,500 = 3,01,500
month