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


JOE LUBALA





Big chicken is a food joint specializing in chicken items
such fried chicken, chicken pop corn, chicken lollipop,
chicken wings and chicken boneless strips.
One can find the mixture of KFC, McDonald, and
Subway items in their menu.
The outlet where I have done my survey is located in
kammanahalli main road.

Lubala Joe









Rent ₨ 75.000
Machineries ₨ 300.000
Salary ₨ 63.000
Electricity bill ₨ 40.000
Water bill ₨ 5.000
Transport Rs80.000
Plates Rs4.500


Lubala Joe

Total fixed cost ₨5,67,500












Potatoes ₨400
Chicken ₨5000
Buns ₨150
Oil ₨2325
Tomatoes ₨50
Onion ₨100
Cucumber ₨100
Lettuce leaf ₨75
Cheese ₨4750
Mayonnaise ₨1500

Lubala Joe

Daily turnover₨14450


Total variable cost 14450*30= ₨4,33,500

Total cost = variable cost + fixed cost
5,67,500 + 4,33,500 = ₨1,01,000
Total revenue = price unit * quantity, so the quantity is not given.
Quantity= ?
Price per unit= ₨160
Total revenues ₨50,000 per day
Quantity produced per day = Total revenue =50,000= 312.5 units
Price per unit 160
Lubala Joe
Break even point= TFC/( S.U.P –V.C.U.P)
TFC= Total fixed cost
S.U.P= Sale per unit of production
V.C.U.P= Variable cost per unit of production
B.E.P= 5,67,500/(160-50)= 5,159 units per month

Lubala Joe


To reach the break even point they have to sale 5,159
units per month. Knowing that their daily units produced
is 312, so, to find their contribution margin which the
extra sales of the month after reaching their break even
point.



To know in how many days they reach the break even I
divided the break even point with the daily production.
5,159= 16days
312

Lubala Joe
So that means they have 14 days of extra sales. To
know how many extra units they sale, I multiplied the
daily units in to the extra days of sales.
=312 units per day * 14days =4,368 units
This is considered as the margin of safety.


Lubala Joe
Lubala Joe

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Big chicken break even analysis

  • 2.    Big chicken is a food joint specializing in chicken items such fried chicken, chicken pop corn, chicken lollipop, chicken wings and chicken boneless strips. One can find the mixture of KFC, McDonald, and Subway items in their menu. The outlet where I have done my survey is located in kammanahalli main road. Lubala Joe
  • 3.        Rent ₨ 75.000 Machineries ₨ 300.000 Salary ₨ 63.000 Electricity bill ₨ 40.000 Water bill ₨ 5.000 Transport Rs80.000 Plates Rs4.500  Lubala Joe Total fixed cost ₨5,67,500
  • 4.           Potatoes ₨400 Chicken ₨5000 Buns ₨150 Oil ₨2325 Tomatoes ₨50 Onion ₨100 Cucumber ₨100 Lettuce leaf ₨75 Cheese ₨4750 Mayonnaise ₨1500  Lubala Joe Daily turnover₨14450
  • 5.  Total variable cost 14450*30= ₨4,33,500 Total cost = variable cost + fixed cost 5,67,500 + 4,33,500 = ₨1,01,000 Total revenue = price unit * quantity, so the quantity is not given. Quantity= ? Price per unit= ₨160 Total revenues ₨50,000 per day Quantity produced per day = Total revenue =50,000= 312.5 units Price per unit 160 Lubala Joe
  • 6. Break even point= TFC/( S.U.P –V.C.U.P) TFC= Total fixed cost S.U.P= Sale per unit of production V.C.U.P= Variable cost per unit of production B.E.P= 5,67,500/(160-50)= 5,159 units per month Lubala Joe
  • 7.  To reach the break even point they have to sale 5,159 units per month. Knowing that their daily units produced is 312, so, to find their contribution margin which the extra sales of the month after reaching their break even point.  To know in how many days they reach the break even I divided the break even point with the daily production. 5,159= 16days 312 Lubala Joe
  • 8. So that means they have 14 days of extra sales. To know how many extra units they sale, I multiplied the daily units in to the extra days of sales. =312 units per day * 14days =4,368 units This is considered as the margin of safety.  Lubala Joe