PRESENTED BY :
AFROZE – 06
ANURADHA - 02
ASHWIN – 10
MALVIKA – 11
NAMRATA – 08
POOJA – 07
VAIBHAV - 02







COMPANY PROFILE
WHY LIMON?
PROCESS
INGREDIENTS
COST SHEET
MARGINAL COSTING
 SEVEN

LEMON PRIVATE LIMITED



ESTABLISHED IN 2013



INITIAL INVESTMENT : RS. 98,00,000/-



DIRECTOR : MR. AFROZE ...


PARTNERS : AFROZE MANSURY, ANURADHA
REDDY, ASHWIN PATIL, MALVIkA BANSAL,
NAMRATA jEURkAR, POOjA LAkHANI &
VAIBHAV ZUNjA...
 LOCATION

:INDUSTRIAL ESTATE,
BUILDING NO – 17
EASTERN EXPRESS

HIGHWAY
BHIWANDI – 421302
MAHARASHTRA
 CONTACT

NO : 02...
1) To facilitate home-made like nimbu pani
refreshment anywhere on the go.
2) To attain number 1 position
amongst lemon dr...
4) To become omnipresent by being
available in colleges, school
canteens, hospitals, gyms etc.
5) To be an economical hydr...
 CREATING…………..
 ONSET OF SUMMERS
 NATURAL HEALTH DRINK
 REFRESHING
 MEDICINAL PROPERTIES
 PREFERRED OVER SOFT DRINKS
 LOW COST
FILTRATI
ON OF
WATER

ADDITIO
N OF
SUGAR
SYRUP

FINAL PRODUCT

ADDITION OF
SALT &
PRESERVATIV
ES

ADDITION
OF CONC.
LEMON
...
1) Entire process will be based on high-end automated
technology.
2) Water from tube well reservoir will be filtered and
p...
Raw material
Outsourced bottles

Per unit
(Rs.)
1.6 /bottle

Units
1500

Amount
(Rs.)
2400

Corrugated boxes

5/box

100

...
 Cost

Sheet is a periodical statement
of cost designed to show in detail the
various elements of cost of goods
produced ...
 Comparative

figures of the various
period may also be shown in the cost
sheet so that assessment can be
made about the ...
Particulars

Per unit
(Rs.)

Units

Amount (Rs.)

(A)Direct material
Opening stock of raw material

5.68

1500

8520

(+)P...
Particulars

Per Unit
(Rs.)

Units

Amount (Rs.)

Factory stationery

0.33

1500

500

Factory overheads

141.63

1500

21...
PARTICULARS

PER UNIT UNITS
(Rs.)

AMOUNT
(Rs.)

Transportation expenses

0.8

1500

1200

Packaging & Labeling

2.13

150...
 Initially,

the Fixed Cost has been
decided on the basis of the cost of
the materials used in the process
and so was the...
 The

per unit cost incurred for the overall
process is estimated to be Rs. 5.70 and
profit margin of Rs. 10.00 is our ai...
cost is the change in the total
cost that arises when the quantity
produced changes by one unit

 Marginal

 That

is, i...


Fixed cost has been calculated on the
basis of the cost of raw materials used
i.e. is Rs 8566/-



Variable cost has b...
QUANTIT S.P
Y
.

FIXED
COST
(FC)

VARIABL
E
COST(VC)
RS. 2.3
P.U.

TOTAL
COST
(FC +
VC)

SALES
(S.P. *
QUANTITY
)

0

15

...
 P/V

RATIO : CONTRIBUTION/SALES *

100
QUANTITY = 1500
P/V RATIO = (SALES-VC)/SALES *100
= (22500-12016)/22500
*100
= 47...


MARGIN OF SAFETY =
PROFIT/PVRATIO
= (SALESTC)/PV
= (2250012016)/47%
= RS.22306.38 /-



ThEREFORE, MOS IS RS.
1) Being a start up we have decided to
produce only 1500 units in the first
month.
2) After sale of almost 628 units we
wi...
4) It is expected that on sale of 50,000
units we will be able to recover the total
cost of production.
5) At the end, as ...
ThAN
YOU
K
…
Limon : New Product Development and its Cost-Benefit Analysis
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Limon : New Product Development and its Cost-Benefit Analysis

  1. 1. PRESENTED BY : AFROZE – 06 ANURADHA - 02 ASHWIN – 10 MALVIKA – 11 NAMRATA – 08 POOJA – 07 VAIBHAV - 02
  2. 2.       COMPANY PROFILE WHY LIMON? PROCESS INGREDIENTS COST SHEET MARGINAL COSTING
  3. 3.  SEVEN LEMON PRIVATE LIMITED  ESTABLISHED IN 2013  INITIAL INVESTMENT : RS. 98,00,000/-  DIRECTOR : MR. AFROZE MANSURY
  4. 4.  PARTNERS : AFROZE MANSURY, ANURADHA REDDY, ASHWIN PATIL, MALVIkA BANSAL, NAMRATA jEURkAR, POOjA LAkHANI & VAIBHAV ZUNjARRAO  FIRM TYPE : PARTNERSHIP WITH EqUAL CONTRIBUTION & PROFIT SHARING
  5. 5.  LOCATION :INDUSTRIAL ESTATE, BUILDING NO – 17 EASTERN EXPRESS HIGHWAY BHIWANDI – 421302 MAHARASHTRA  CONTACT NO : 022-6131191 9664503093  DISTRIBUTION AREAS : MUMBAI &
  6. 6. 1) To facilitate home-made like nimbu pani refreshment anywhere on the go. 2) To attain number 1 position amongst lemon drinks. 3) To provide a desirable substitute in beverage category.
  7. 7. 4) To become omnipresent by being available in colleges, school canteens, hospitals, gyms etc. 5) To be an economical hydrating agent. 6) To reach the masses. 7) Finally, in the long run, to be the
  8. 8.  CREATING…………..
  9. 9.  ONSET OF SUMMERS  NATURAL HEALTH DRINK  REFRESHING  MEDICINAL PROPERTIES  PREFERRED OVER SOFT DRINKS  LOW COST
  10. 10. FILTRATI ON OF WATER ADDITIO N OF SUGAR SYRUP FINAL PRODUCT ADDITION OF SALT & PRESERVATIV ES ADDITION OF CONC. LEMON JUICE & ACIDITY REGULATOR S
  11. 11. 1) Entire process will be based on high-end automated technology. 2) Water from tube well reservoir will be filtered and processed sugar syrup will be added. 3) Further, squeezed and concentrated lemon juice will be added along with acidity regulators, preservatives and salt. 4) Thus the final product (drink) will be bottled, apped and sealed.
  12. 12. Raw material Outsourced bottles Per unit (Rs.) 1.6 /bottle Units 1500 Amount (Rs.) 2400 Corrugated boxes 5/box 100 500 Sugar 30/kg 35 1050 Lemon 0.33/lemon 6000 2000 Acidity regulators (8ml/unit) Preservatives (12ml/unit) 80/ltr 12 960 90/ltr 18 1620 Salt (2g/unit) 12/kg 3 36
  13. 13.  Cost Sheet is a periodical statement of cost designed to show in detail the various elements of cost of goods produced like Prime Cost, Factory Overheads, Cost of Production, Total Cost, etc.  It is prepared at regular intervals e.g., weekly, monthly ,quarterly, yearly etc.
  14. 14.  Comparative figures of the various period may also be shown in the cost sheet so that assessment can be made about the progress of the business  In the assigned project, estimated Cost Sheet of a month has been shown
  15. 15. Particulars Per unit (Rs.) Units Amount (Rs.) (A)Direct material Opening stock of raw material 5.68 1500 8520 (+)Purchases 0.024 1500 36 Direct expenses 80 1500 120000 Direct wages/Labor 14 1500 21000 149566 PRIME COST (B)Factory overheads Factory manager’s salary 12.67 1500 19000 Unproductive wages 1.33 1500 1950 Factory insurance 10 1500 15000 Factory lightning 33.33 1500 50000 Depreciation on plant & machinery (@5%) 83.33 1500 125000
  16. 16. Particulars Per Unit (Rs.) Units Amount (Rs.) Factory stationery 0.33 1500 500 Factory overheads 141.63 1500 212500 362066 Factory Cost (C)Office & administration o/h Director’s fees 5 1500 7500 Telephone expenses 0.13 1500 200 Office insurance 5.33 1500 8000 Legal expenses 66.66 1500 100000 Depreciation on building (@10%) 133.33 1500 200000 Misc.expenses 1.66 1500 2500 Office overheads 21.21 1500 318200 680266 Cost of Production (D) Selling & distribution o/h Depreciation on delivery van (@5%) 3.33 1500 5000 Sales & Promotion expenses 0.13 1500 200
  17. 17. PARTICULARS PER UNIT UNITS (Rs.) AMOUNT (Rs.) Transportation expenses 0.8 1500 1200 Packaging & Labeling 2.13 1500 3200 Commission on sales (3.25%) 0.03 1500 50 1500 18650 Selling & Distribution O/H Cost of sales/ Total Cost 12.42 698916
  18. 18.  Initially, the Fixed Cost has been decided on the basis of the cost of the materials used in the process and so was the S.P.  This is done keeping in mind the pricing technique followed by the competitors (Nimbooz)
  19. 19.  The per unit cost incurred for the overall process is estimated to be Rs. 5.70 and profit margin of Rs. 10.00 is our aim  Considering competitor’s S.P. i.e. Rs. 18, we have decided ours to be Rs. 15, which in turn also fulfills our aim
  20. 20. cost is the change in the total cost that arises when the quantity produced changes by one unit  Marginal  That is, it is the cost of producing one more unit of a good  Marginal costs include all costs that vary
  21. 21.  Fixed cost has been calculated on the basis of the cost of raw materials used i.e. is Rs 8566/-  Variable cost has been calculated including the variable factory overheads (i.e. Repairs & Maintenance, Unproductive wages and Factory stationery).  Both these cost are being fixed after
  22. 22. QUANTIT S.P Y . FIXED COST (FC) VARIABL E COST(VC) RS. 2.3 P.U. TOTAL COST (FC + VC) SALES (S.P. * QUANTITY ) 0 15 8566 - 0 0 500 15 8566 1150 9716 7500 1000 15 8566 2300 10866 15000 1500 15 8566 3450 12016 22500
  23. 23.  P/V RATIO : CONTRIBUTION/SALES * 100 QUANTITY = 1500 P/V RATIO = (SALES-VC)/SALES *100 = (22500-12016)/22500 *100 = 47%  SO, ThE P/V RATIO IS 47%.
  24. 24.  MARGIN OF SAFETY = PROFIT/PVRATIO = (SALESTC)/PV = (2250012016)/47% = RS.22306.38 /-  ThEREFORE, MOS IS RS.
  25. 25. 1) Being a start up we have decided to produce only 1500 units in the first month. 2) After sale of almost 628 units we will start gaining. 3) On sale of 1500, profit estimated is Rs. 10484/-
  26. 26. 4) It is expected that on sale of 50,000 units we will be able to recover the total cost of production. 5) At the end, as per budgeting, we got a product that is high on lemon and low on money.
  27. 27. ThAN YOU K …

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