1. HARVEY BATTERY HOUSE,BHOPAL
MR. HARSH BAJPAI
HEAD OFFICE : House no. 76/121, shop no. 1 noor mahal ashok colony Bhopal
CONTACT : 7828093238,8269575505
ASSIGNMENT OF
MANAGERIAL ECONOMIC
SUBMITTED TO : SUBMITTED BY :
Prof. Amit Tiwari Vinit Khushalani
Section 1st, MBA SEM 1st

2. Expenditure profile of the firm (on monthly basis) :
The majority of car batteries are lead-acid batteries.
The battery produces energy through a chemical process involving lead, lead oxide and a
liquid electrolyte solution.
This battery is heavy and full of acid but can produce huge electric currents for long periods
of time.
Harvey Batteries having turnover around ₹ 1 crore.
Months Production (₹) Months Production (₹)
January 507100 July 715500
February 532100 August 628200
March 611650 September 613800
April 570150 October 536500
May 774600 November 500800
June 697300 December 511200
Copper lead : 2000 kg to 2500 kg per month
CP Acid (dilute) is used to fill the gap of plates : 50 to 60 liter per month
Separator : 12000 to 13000 plates
Nylon (container) : 500 to 700 container per month
Red oxide : 40 to 50 liter per month
Grey oxide : 50 to 60 liter per month
Dynaform : 50 to 60 liter per month
Lignin : 20 to 30 liter per month

3. Types of Batteries to Manufacture :
S.NO. MODEL AMP* PLATES KILOGRAM COGS*
1 350 35 9 10 3157
2 750 75 11 14 4851
3 900 90 13 18 5621
4 1000 100 15 22 6270
5 1200 120 17 35 7546
6 1500 150 21 41 9009
7 1800 180 25 48 10395
*AMP: Ampere,*COGS: Cost Of Goods Sold.
Categorization of expenses under fixed and variable heads :
Fixed Cost :
Labours : 9 labours each paid amount ₹10000 per month = ₹ 90000
Rent : ₹ 2000 rent per month for the room which is used to manufacture the batteries
Water : ₹ 200 bill per month for the water which is used in the manufacture of batteries.
Electricity: ₹700 (approx.) for used in the manufacture the batteries.
Variable Cost:
According to the quantity of batteries:
Copper Lead ₹ 130 to ₹150 per kg
Separator used ₹ to ₹5 per plate
3
Nylon container ₹350 to ₹500 per container
Cp acid ₹ 550 to ₹700 per can
Red oxide ₹ 120 to ₹135 per kg
Grey oxide ₹115 to ₹120 per kg
Lignin ₹300 to 450 per kg
Dynaform ₹250 to ₹275 per kg
Transport charges ₹ 5000 to ₹6000 per month

4. Controllable and Uncontrollable Expenses:
Controllable Expenses:
Intensive to the workers on the any occasion
Avoid manufacture the batteries in the night time.
Reduce waste the production process.
Use actual measure to manufacture the batteries.
Uncontrollable Expenses:
Payment to the workers
Paid rent for the room which use to manufacture the Batteries
Electricity expenses.
Raw material which is used to manufacture the batteries.

5. Highest and Lowest expenses months in the duration of one year:
Highest Expenses Months :
May
June
July
August
December
Lowest Expenses Months:
April
October
Possible Break Even with existing cost structure:
Now calculating Break Even Point each Battery :
Let suppose I take 12 volt (35 AMP) Battery.
If he deal only 12volt (35 AMP) Battery, then how many batteries he sale to come his Break
Even Point (no profit, no loss).
Suppose he sale 12 volt (35 AMP) each battery in ₹4100, variable cost is ₹2800 of each battery
And fixed cost is ₹92900.
Contribution = Sale price – Variable cost
Contribution = ₹4100- ₹2800
Contribution = ₹1300
(i)Break Even Point (Qtty) = Fixed Costs
Contribution per unit
Break Even Point (Qtty) =₹92900
₹1300
Break Even Point (Qtty) = 72 units (approx.)

6. In the 72 units of 12 volts (35 AMP) battery firm cover his fixed cost.Firm sale above 72 units to
make his profit of the firm.
(ii)Break Even Point (in ₹) =Fixed Costs
PV Ratio
[PV Ratio = Contribution per unit
Sales price per unit
PV Ratio = ₹1300
₹4100
PV Ratio = .32]
Break Even Point (in ₹ = ₹
) 92900
₹.32
Break Even Point (in ₹ = ₹290300 (approx.)
)
If the firm sale above ₹290300 the amount to make his profit.