INSTITUTE OF PROFESSIONAL EDUCATION AND                    RESEARCH (IPER)    ASSIGNMENT-2, BY MBA, SEC-1, GROUP-6        ...
S.NO.                            TOPICS                              PAGE                                                 ...
Expenditure Profile of the Fidaato Software Solutions,               sonagiri, Raisen Road, Bhopal (on monthly basis)     ...
CATEGORIZATION OF EXPENSES UNDER FIXED &VARIABLE HEADSFIXED EXPENSES   Amount in Rs.   VARIABLE             Amount in Rs. ...
HIGHEST AND LOWEST EXPENSES MONTHS IN THE                     DURATION OF ONE YEAR                         Expenses From  ...
POSSIBLE BREAK EVEN WITH EXISTING COST                   STRUCTURESelling price per unit       10000 BEP=Fixed Cost Contri...
Variable Costs (per unit) = Variable Cost/No. of Units Produced                             =Rs. 86150/60 units (websites ...
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Managerial Economics (Break Even Point)

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Managerial Economics (Break Even Point)

  1. 1. INSTITUTE OF PROFESSIONAL EDUCATION AND RESEARCH (IPER) ASSIGNMENT-2, BY MBA, SEC-1, GROUP-6 OF MANAGERIAL ECONOMICS ON EXPENDITURE PROFILE OF THE FIDAATO SOFTWARE SOLUTION, BHOPAL SUBMITTED BY-SUBMITTED TO- SANDEEP PATELProf. AMIT TIWARI SANJEEV MALVIYA RAHUL GUPTA 1
  2. 2. S.NO. TOPICS PAGE NO. 1 Expenditure Profile of the Firm (on monthly basis ) 03 2 Categorization of expenses under fixed and variable heads 04 3 Controllable and Uncontrollable expenses 04 4 Highest and lowest expense months in the duration of one 05 year 5 Possible Break even with existing cost structure 06 2
  3. 3. Expenditure Profile of the Fidaato Software Solutions, sonagiri, Raisen Road, Bhopal (on monthly basis) Oct. 2011-Sep. 2012 EXPENSES Office Internet & Electricity Salary Transpo- White Other Total (in Rs.) Rent Telephone Bills rtation Board Miscell- Bills Marker aneousMONTHSOCTOBER 7000 1550 1075 10000 2500 150 500 22775NOVEMBER 7000 1550 1050 10000 2700 180 650 23130DECEMBER 7000 1550 1100 10000 3000 210 450 23310JANUARY 7000 1550 1150 10000 2750 180 550 23180FEBRUARY 7000 1550 1025 10000 2800 260 625 23260MARCH 7000 1550 1215 10000 2965 310 720 23760APRIL 7000 1550 1320 10000 3250 320 865 24305MAY 7000 1550 1465 10000 3500 260 890 24665JUNE 7000 1550 1486 10000 3689 350 965 25040JULY 7000 1550 1589 10000 3802 370 1052 25363AUGUST 7000 1550 1580 10000 3850 390 1150 25520SEPTEMBER 7000 1550 1545 10000 4052 430 1265 25842TOTAL 84000 18600 15600 120000 38858 3410 9682 290150 3
  4. 4. CATEGORIZATION OF EXPENSES UNDER FIXED &VARIABLE HEADSFIXED EXPENSES Amount in Rs. VARIABLE Amount in Rs. EXPENSESOFFICE RENT 84,000 INTERNET & 18,600(7000*12) TELEPHONE BILLSSALARY 1,20,000 ELECTRICITY BILLS 15,600(10000*12) TRANSPORTATION 38,858 WHITE BOARD 3,410 MARKER OTHER 9682 MISCELLANEOUSTOTAL 2,04,000 TOTAL 86150CONTROLLABLE & UNCONTROLLABLE EXPENSESCONTROLLABLE UNCONTROLLABLE EXPENSESEXPENSESTELEPHONE BILLS OFFICE RENTELECTRICITY BILLS SALARYOTHER MISCELLANEOUS INTERNET BILLSEXPENSES 4
  5. 5. HIGHEST AND LOWEST EXPENSES MONTHS IN THE DURATION OF ONE YEAR Expenses From (IN Rs.) Oct. 2011-Sep. 2012 26500 OCTOBER 26000 NOVEMBER 25500 25000 DECEMBER 24500 JANUARY 24000 FEBRUARY 23500 MARCH 23000 APRIL 22500 MAY 22000 JUNE 21500 JULY 21000 EXPENSES AUGUST SEPTEMBERINTERPRETATIONS:HIGHEST EXPENSE MONTH: - September 2012The business expansion leads to the rise in the expenses like marketing, variablecost etc. The extensive increase in the usage of websites by SME’S (SMALLMEDIUM ENTERPRISES).LOWEST EXPENSR MONTHS: - October 2011Initially the business was commenced and shortage of capital.Therefore, the expenses were lowest during the October month 5
  6. 6. POSSIBLE BREAK EVEN WITH EXISTING COST STRUCTURESelling price per unit 10000 BEP=Fixed Cost Contribution per unit Contribution Margin=Total Sales (per unit)-Variable Cost (per unit)Source :-http://fast4cast.com/break-even-calculator.aspxFixed Cost =Rs. 2, 04,000Total Sales (per unit) =Total Sales/ No. of units Produced =Rs. 6,00,000/ 60 units =Rs. 10,000 6
  7. 7. Variable Costs (per unit) = Variable Cost/No. of Units Produced =Rs. 86150/60 units (websites Designed) =Rs. 1435.83Contribution Margin=Total Sales (per unit)-Variable Cost (per unit)Contribution per unit = Rs. 10,000 - Rs. 1435.83 =Rs. 8564.17BEP=Fixed Cost Contribution per unitBEP =Rs. 2, 04,000/Rs. 8564.17 =23.82 units =Rs. 2, 38,200The firm BEP is when its sales volume is at 24 units approx. and inRs. 2,38,200. THANK YOU! Valuable Suggestions for further Improvement are always Welcomed, if any. 7

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