This presentation will give the help to the students regarding how to do the purchase price cost analysis.

1. TERM REPORT
OF
PURCHASED PRICE COST
ANALYSIS
Prepared By:
Muhammad Khalid Hussain Zia

2. INTRODUCTION:
Kurleez is the product of Snack city which is situated at Hub industrial
area and it is established at 2006 . I visit this company at 2- April-2015
by the reference of my friend he was the native of Hub and as well as his
father also work over there.
Snackcity has various product in its product line such as.
1.FILLZ .
2.PEANUTZ
3.NIMCKO
4.CHILLZ
5.KURLEEZ

3. MANUFACTURINGCOST OF KURLEEZ
Direct Labor cost 20.10%
Rs
Labor involve inslising 1.107
Labor involve infrying 0.3216
Labor involve inPackaging 0.2814
1.71
INDIRECT LABOR: 12%
RS
Labor involve indistribution 0.48
lLaborinvolve inmanagement 0.408
Labor involve inprofessional and 0.312
technical workcost
1.2
DIRECT MATERIAL COST 51.30%
RS
Freshpatato 1.5442
Vegetableoil 1.026
Spices 0.213
salts 0.1052
Packingmaterial cost 1.43
printingcost 0.2052
4.5236
INDIRECT MATERIAL COST RS 0.06
OTHER COST 16.00%
Transportationcost 0.48
Distributioncost 0.528
F.G STORE COST 0.32
1.328
sum 8.8216
PROFIT 1.1784

4. REPORT ON THE PURCHASE PRICE COST ANALYSIS OF THE LAMINATED
ALUMINIUM FOILOF KARLEEZ
KURLEEZ purchased the aluminum foil at the cost of seven dollar per Kg from the
SHANGHAI METAL CORPORATIONdue to which it cost RS 1.43 per pack of KURLEEZ
Of RS 10.
ALLTERNATIVES OF SHANGHAI METAL CORPORATION(SMC) :
There are many alternatives of SHANGHAI METAL CORPORATION in the market such as
1.ANSA(INDIA)
2 MEDICK (MALYSHIA)
3.PRESIM PAKISTAN (PAKISTAN)
4.SOGO (PAKISTAN)
Which can reduces the cost of aluminum foil of kurleez and they can provide the aluminum foil
at four to five dollar It means that the per packet cost of kurleez could be RS 1 or RS 0.816.
Which can give the per packet profit of1.6084 or 1.7924.

5. Shanghai Metal Corporation sold their aluminum foil in the market is about $ 7/kg of the
0.006 mm.
PPCA OF SMC Aluminum foil.
STEP 1:
In step 1 SMC purchased the aluminum at $1916/ton.
This cost at about $1.915 per K.g of Aluminum Foil.
STEP# 2:
In step two they melt about 32 ton aluminum this aluminum in the Gas Furness at about 1380 F
At about 3to 8 hours with Silica, Titanium, Zinc.
The fusion temperature of aluminum is about 1200 F
GAS FURNESS COST:
Gas Furness consumes about 5000 unit per hour.
Which consume at about 5000* 8= 40000 unit in a day which cost at about
40000* $0.2745 = $10980 per day.
Which cost at about one K.g of aluminum foil is about.
10980/32 = $343.125 / ton
343.125/32000= $ 0.01072
Step#3:
Number of Labor = 15

6. Salary= $950/month
This cost at about $ 0.017075/Kg
STEP#4: In step four SMC framing the melt alloy in the length of 40 feet and 5 feet in width and
18 inches thick which carries the weight at about 8 tons.
STEP#5:
In step number 5 block will be moved from one place to another place by the help of crane for
refining impurities.
The expense of labor involve in refining impurities are about $24960 per month which carries
about $0.03 per k.g.
STEP#6:
In step 6 each block of Aluminum will be passes from the double roller at 850 F to 1000 F in
which 95% water and 5% of oil will be passes from the upward and downward side of aluminum
which reduces the width of aluminum and increases the length of aluminums at about 40 feet to
8 miles and in the end it will be become 0.006 mm.
The expense of Labor and the expense of electricity during this process is about $100360 per
month.
This cost $ 0.120627 per kg.
STEP# 7:
The depreciation expense on this machine is.
Book value of this Machine is about: $ 15000,000
Scrap value of machine is : $ 300000
Production Capacity is 35000 batches
15000 batches have been produced

7. The depreciation expense of this Machine is about $0.0525 per K.g of aluminum foil.
ALMUNIUM FOILE MANUFACTURING COST
STRUCTURE
OF SHANGHAI METAL
CORPORATION
DIRECT LABOR COST
Labor involve in refining impurities $0.03
Labor involve in operating machine 0.119525
Labor involve In gas Furness 0.017075
INDIRECT LABORCOST
Labor involve in distribution 0.358575
Labor involve in management 0.092205
Labor involve in technical and professional cost 0.06147
INDIRECT MATERIAL COST
Other cost 0.064885
F.G store cost 0.12977
Transportation
cost 0.454195
Industrial electricity cost 0.03415
DIRECT MATERIALCOST
Aluminum 1.915

8. Conclusion:
MANUFACTURING COST OF ALUMINIUM FOIL:
According to the Hafiz (Sami) pharma experts and the Sales manager Roger of Shanghai metal
Corporationthe manufacturing cost of aluminum foil is 3.415$ per kg . So it can reduces the cost
of Kurleez from 1.43 R.S to 0.6966. Which can give the per packet profit of 1.91174
References
Export Sales Man Franky Wang of SMC
Sales Manager Roger of SMC
And the Expert of Hafiz Aluminum foils company
Titanium +Silica + Zinc 0.0683
Operating Cost 0.000683
Electricity cost on machine 0.001102
depreciation cost 0.0525
Furness cost 0.010722
Aluminum Foil manufacturing COST $3.41
profit 3.59
Profit earning % 105%