2. Presented by:
Team: Frantic Six
Name ID No.:
Jahidul Islaam 2-15010124
Md.Benzir Rahmman 2-15010126
Navila Shakhawat 2-15010130
Md. Hafizul Islam 2-15010120
Memore Mehnaj 2-15010136
A. K. M. Nayeemul Hassan 2-15010125
4. Introduction
Form the earliest stages of civilization, bags and purses
were practical everyday articles used by men as well as
women. They were necessary for carrying money and other
personal items, since clothes hadn’t yet been fitted out with
pockets.
The term "purse" originally referred to a small bag for
holding coins. It uses necessary for carrying money and
other personal items, since clothes hadn’t yet been fitted
out with pockets.
5. Short History Using
Purse BagIn the 17th and 18th centuries and most of the 19th century,
women’s clothing was so voluminous that one or two bags or
“pockets” could easily be hidden underneath the skirt.
During the 19th century, the age of the Industrial Revolution,
many new manufacturing methods and techniques were
invented the 20th century, art and fashion movements came
and went in rapid succession and the handbag evolved
alongside.
7. Costing of Production
We choose the Cost Volume Profit
(CVP) method so that it is easy to find
the costs and profits relation. There is
another department or sectors or
variation of products that we produce.
8. For 1,000 Piece Purse Bag
Production Cost Analysis
Asset:
Sewing Machine 30,000/=
Cutting Machine 40,000/=
Pasting Machine 48,000/=
9. Purchase of Direct Material
Cloth/Fabrics 15,000/=
Raxine 7,500/=
Waterproof Cloth 5,000/=
Yarn 200/=
Chain 2,250/=
Board (6 Ounce) 600/=
Glue/Paste (5 Bottle) 1,000/=
Magnetic Button 2,000/=
Lace 400/=
Foam 50/=
34,000/=
Transportation Cost 300/=
(+) Direct Labor 10,000/=
Prime Cost 44,300/=
14. C.V.P. Costing
Sales 80,000/= 1000 unit 80/=
Variable Cost 44,400/= 1000 unit 44.4/=
Contribution
Margin
35,600/= 1000 unit 35.6/=
(-) Fixed Cost 19,100/= 19.1/=
Net Income 16,500/= 16.5/=
15. So, if we get 2,000 purse bag order
then,
Sales 1, 60, 000/=
(-) Variable Cost 1, 11, 000/=
49,000/=
(-) Fixed Cost 37,000/=
Net Income 12,000/=
16. Price of Ingredients of Per Purse
Bag
Mechanism Requirements Price
Cloth 1.5 feet 10 tk/per feet
Raxine 1 feet 15 tk/per feet
Waterproof Cloth 1 feet 6 tk/per feet
Yarn 2 Bundle/Roll 100 tk/per roll
Chain 3 pieces .75 tk/per chain
Board (6 Ounce) 1 piece .6 tk/per piece
Magnetic Button 1 piece 2 tk/ per piece
Lace 1 feet .04 tk/per piece
Foam .05 tk
17. Competitor Price
• Purse bag is available products for girls. So, there are lots
of competitors in this market. We make the profit by
reducing the fixed costs and variable costs.
• If any competitor come with lower price, then we can
survive by reducing the profit. We make profit 26% of
total cost and average 16.5 tk per bag. So, if we reduce
our profit margin and net income reduce by 20% or 15%
then we can hope that, we can lead the market and grab
the market.
18. Risk of Competitive
Pricing The main risk of the business that, the design
cost will be increasing day by day. Because
changing of trends effects the market and
product.
We have to continuously change of variety in
bags. So, it will also effect the cost. Sometime it
may cause the increasing of price.
19. Present & Future of Our
Product
We are selling our per product at 80/= tk. This price is
reasonable. If the middle man wants to make a profit at
least 20/= tk the product finally will be sold to the
customer at 100/= tk. But our competitors are selling their
products more than our price. If they want to reduce their
product price, we can survive in the market by reducing
profit because we have enough profit margin.
20. In near future we will grab the whole bag
market and we can remove foreign products
from here. We will try to give the best product
at this reasonable price so that we can grab our
market from the foreign product. After
fulfillment the local demand, we will export our
product to the foreign. Than we also can lead
the global market.
21. Problems of Purse Bag Industries
in Bangladesh
• Skilled labor
• Lacking’s of environment
• Promotion of products
• New product design idea
• Communication facilities
22. Limitations of Purse Bag Industries
in Bangladesh
• Need capital help from bank at a lowest interest
• Trained labor and experienced them
• Make large and potential market
• Production flexibility
• Enough resources, raw materials and ingredients
• Potential, efficiency of employee
• Update information and technology system
23. Current Situation and Future View of
Bag Industries in Bangladesh
Nowadays this purse bag is a fashionable thing for ladies. But in
our country the current situation of bag industries is too low.
Most of the purse bag come from another country as like China,
India and others. Though now a few industries are start to
manufacture the purse bag but it’s not enough and more
valuable product for us. Bangladesh bag industries has
developed much in recent years in leather, fabric, raxine, cloth
and many other materials. They try to make purse according to
customers need as like which type of purse they really want, what
type of fashion now habitually used to.
24. Conclusion
At last bag industry in Bangladesh is still depend on
outsourcing and import the bag from China and other large
market of outside. Now some big industry S.Alam group,
Jennys, Khan Group produce bags. But those bags cannot
afford by people. As well as if we say about purse bag, then
it can be said the most of small enterprises produce the
purse using resource in reasonable price. If the problem are
being solved, then we can say that girls will use the own
products with enthusiasm.
