Sulphuric Acid Case solution IIMA Management accounting

1. SULPHURIC ACID PLANT
Particulars
Variable expenses
Sulphur
Electricity
Canal Water
Soft Water
Wages
Supplies
Repairs
Fixed expenses
PF, Employee insuranc
Maintenance
Salaries
Depreciation
Insurance
Interest
Overheads
Capacity =
Capacity utilization =
Selling Price/tonne=
Cost/ tonne =
Investment =
ROI =
Cost/tonne
120.00
4.00
5.30
1.20
1.20
1.40
0.80
133.90
0.40
1.20
27.00
15.00
0.50
5.00
15.00
4,800
14,400
3,24,000
1,80,000
7,69,200
6,000
60,000
1,80,000
15,000
80%
200.00
198.00
9,30,000
3%
Scenario Summary
Current Values:
50%
70%
80%
100%
80%
50%
70%
80%
100%
198.00
3%
236.46
‐29%
207.16
‐8%
198.00
3%
185.18
24%
Changing Cells:
Utilization
Result Cells:
Cost
ROI
Utilization for break even =
78%