Fiba Pens, based in Kolkata, has been a prominent player in the writing instrument industry for the

past 47 years. Specializing in various types of pens, the company offers a diverse portfolio catering to
different writing needs.

Company Name: Fiba Pens

Location: Kolkata, India
Operating History: 47 years
Industry: Writing Instruments
Contact:

 Address: Rajendra Prasad Sarani, Kolkata - 7000001, India

 Phone: +91 8017325535

 Email: customercare@fibapen.com

Product Portfolio:

Direct Fill Pens: These pens offer a traditional writing experience where ink is directly filled into the
pen barrel.

Ball Pens: Known for their convenience and reliability, ballpoint pens are a staple in the writing
world. Fort Pens likely offers a range of designs and ink types within this category.

Refillable Pens: Environmentally friendly and cost-effective, refillable pens allow users to replace the
ink cartridge instead of disposing of the entire pen.

Sketch Pens: Designed for artists and creatives, sketch pens provide bold and vibrant colors suitable
for drawing and sketching purposes.

Fiba Pens prioritizes quality craftsmanship and durability across its product lines, aiming to provide
customers with writing instruments that offer both functionality and style.

1. Land and Building: ₹5 crore

2. Machinery and Equipment: ₹10 crore

3. Utilities and Infrastructure: ₹3 crore

4. Permits and Licenses: ₹1 crore

5. Raw Materials and Inventory: ₹4 crore

6. Labor and Training: ₹2 crore

Total 25 crore

Units produced every day are 1,00,000 units

Barel : 0.48

Cap : 0.24

Tip: 0.3

Adapter: 0.05

Inl: 0.13

Total Cost 1.2

Packaging Cost: 0.06

Transportation Cost: 0.04

Manufacturing Costs: 0.10

Total cost – 1.40

Selling Cost : 1.60

Profit: 0.20

Cost-Volume-Profit analysis for Fiba Pens

1. Identifying Fixed and Variable Costs:

- Fixed Costs:

- Land and Building: ₹5 crore

- Machinery and Equipment: ₹10 crore

- Utilities and Infrastructure: ₹3 crore

- Permits and Licenses: ₹1 crore

- Total Fixed Costs (TFC) = ₹5 crore + ₹10 crore + ₹3 crore + ₹1 crore = ₹19 crore

- Variable Costs:

- Raw Materials and Inventory: ₹4 crore

- Labor and Training: ₹2 crore

- Total Variable Costs (TVC) = ₹4 crore + ₹2 crore = ₹6 crore

2. Determining Selling Price per Unit:

- Selling Price per Unit = ₹1.60

3. Calculating Contribution Margin:

- Contribution Margin per Unit = Selling Price per Unit - Variable Cost per Unit

= ₹1.60 - ₹1.40 = ₹0.20

4. Finding the Break-even Point:

- Break-even Point (in units) = Total Fixed Costs / Contribution Margin per Unit

= ₹19 crore / ₹0.20 = 95 crore units

- Break-even Sales (in Rs ) = Break even point (in units) * Selling Price per unit

= 95 crore units* Rs 1.60 = Rs. 152 crore

5. What-if Analysis:

Scenario 1: Increase in Selling Price:

- New Selling Price per Unit = ₹1.80

- Break-even Point (in units) = ₹19 crore / (₹1.80 - ₹1.40) = 47.5 crore units

- Break-even sales in Rs. = 47.5 crore units * ₹1.80 = ₹85.5 crore

Scenario 2: Decrease in Variable Costs:

- New Variable Cost per Unit = ₹1.20

- Break-even Point (in units) = ₹19 crore / (₹1.60 - ₹1.20) = 47.5 crore units

- Break-even sales in Rs. = 47.5 crore units * ₹1.60 = ₹76 crore