The document outlines a comprehensive analysis of a drone-based delivery service's monthly business operations, indicating a total of 11200 kgs in weights and 161280 kms in distance covered using four short-range drones. It details the profitability rankings of different pricing plans and highlights that plans A and B are the most feasible for achieving break-even and maximizing profits. The report concludes by recommending the use of short-range drones for lighter items while suggesting long-range drones for heavier packages to enhance overall profitability.

1. Monthly business in weights 11200 kgs ( as per attached sheet - Calculation of monthly business)
Monthly business in kms 161280 kms (as per attached sheet - Calculation of working capacity )
Daily business 10 round trips per drone per day
Particulars
Monthly Daily Total Monthly
(Per drone) (4 drones )
Business kms 40320 1440 161280 kms
Business
weights 2800 100 11200 kgs

2. It is given that 1 drone can carry 10 kgs
1 drone = 10 kgs
Also, short range drones can fly 150 kms
1 drone = 150 kms
Given that drone can fly 5 kms in 15 minutes
5 km = 15 minutes
150 km = 50 minutes
We have assumed that we are working 28 days a month
8 hours per day (normal business working hours)
Thus, 1 month = 28 days
1 month = 224 hours (28 days * 8 hours per day)
1 month = 13440 minutes (224 hours * 60 minutes per hour)
Since, 50 minutes = 150 kms given
then 13440 minutes = 40320 kms (150 kms / 50 minutes) * 13440 minutes
Total monthly business area = 161280 kms (40320 kms * 4 short range drones (It is given in the question that the company has choosen short range drone based services for initial business
Total monthly business hours = 224 hours
Total monthly Business area = 161280 kms
Since, each drone can fly 150 kms and we have 4 drones
So, 1075.2 round trips are required in total per month by all drones
or
Total 1075 (approx) round trips are required in total per (161280 kms per month / 4 drones )
We have 4 drones available
268.8 round trip per drone per month
or

3. Monthly 269 (approx) round trip per drone per month (1075.2 round trips / 4 drones )
Thus per day per drone round trip :
9.6 round trip per day per drone
or
10 (approx) round trip per day per drone
1 drone
business =
10 round trips
per day

4. It is given that, 1 drone can carry 10 kgs of weight
1 drone = 10 kgs
1 drone =
10 round trips
per day (As per calculation of working capacity sheet)
Thus, 10 kgs * 10 round trips per day per drone
100 kgs per day per drone can carry
Also we have 4 drones
So, 100 kgs * 4 drones
400 kgs per day business (in weights)
Monthly 400 kgs * 28 days
11200 kgs per month business (in weights)
Total monthly
business = 11200 kgs

5. Courier plans A B C D
Weights (1 gm - 500 gm) (501 gm - 1 kg)
(1.01 kg - 5
kgs )
(5 kgs - 10
kgs )
Price ₹60 ₹80 ₹100 per kg ₹ 110 per kg
1 drone in one round trip can carry 10 kgs
1 drone = 10 kgs
Assuming business at maximum capacity in each plan, Thus the calculations
will be :
Pricing ₹60 ₹80 ₹100 per kg ₹110 per kg
Weights/
Number of
items, drone
can carry at
maximum
20 items each
of 500 gms
10 items each
of 1kg
2 items each of
5 kgs
1 item of 10 kgs
Total amount
per day per
drone
1200 800 1000 1100
(20 items @ 60
per item)
(10 items @80
per item)
(2 items each of
5 kgs @100
each)
(1 item of 10
kgs @110 per
kg)
RANK (Based
on
profitability)
I IV III II

6. NOTE :
Rankings are given on the basis of maximum earnings under each
plan
Thus, ranking shows "PREFERENCE OF PLAN OVER THE
OTHER" (considering one plan at a time)
This, we should prefer more items under PLAN A over the others as
much as possible to achieve maximum profitability
Following PLAN A, 2nd preference should be given to plan D, then
followed by plan C and plan B
Total amount 1200 800 1000 1100
Pricing ₹60 per item ₹80 per item ₹100 per kg ₹110 per kg
Per unit
contribution
20 10 10 10
RANKS (based
on per unit
contribution)
I II II II
Note :
Ranking method 2nd based on per unit profitability also shows that
plan A is the most profitable option. Thus more ans more of items
under plan A should be accepted over the other plans

7. Monthly expenditures :
Management
team salary 5*100000 500,000.00
Drone pilots
salary 4*50000 200,000.00
IT team salary 2*70000 140,000.00
support staff 4*20000 80,000.00
Packaging staff 4*15000 60,000.00
Total salaries 980,000.00
Repairs and
Maintenance
expenses 50,000.00
Rental charges 30,000.00
Packaging
expenses 20,000.00
Electricity
expenses 0.00
covered in
rental charges
Marketing
expenses 40,000.00
Miscellaneous
expenses 10,000.00
Insurance
charges 40,000.00
Contingencies
provision
(Includes
replacement
costs, parts and
spares etc as
well) 40,000.00

8. Battery, power
and fuel 41,000.00
Total Monthly
Expenditures 1,251,000.00

9. Plans A B C D
(Break even under one plan at a time) A Or B Or C Or D
Price per unit ₹60 ₹80 ₹100 per kg ₹110 per kg
Maximum items
a drone can
carry under
each plan
20 units 10 units
2 items per 5
kgs
1 item per 10
kgs
Amount 1200 800 1000 1100
(60 * 20) (80*10) (100*2*5kgs) (110*1*10kgs)
No of Drones 4 4 4 4
No of round
trips per day
10 10 10 10
Total business
per day
48000 32000 40000 44000
(₹1200*4*10)
Working days 28 28 28 28
Total monthly
business
1344000 896000 1120000 1232000
Less : Monthly
Fixed cost
1251000 1251000 1251000 1251000
Profit 93000 (355,000.00) (131,000.00) (19,000.00)
Rank based on
overall
profitability
I IV III II

10. NOTE :
Thus, as per profitability and break even achievability, more and
more of plan A is preferable over the others

11. BREAK EVEN ANALYSIS :
Break even point in ₹ :
Fixed monthly
cost
1251000
monthly working
days
28
drones available 4
round trip per
drone per day
10
Break even
point =
1,116.96
(1251000/4dron
es )/ 28 days )/
10 round trips)
Or
₹1117 (approx)
per day per
drone per round
trip
Break even point in units :
Fixed monthly
cost
1251000
monthly working
days
28
drones available 4
round trip per
drone per day
10

12. Break even under each plan :
Plans A B C D
No of break
even units =
Break even in
₹/price per unit
18.62 13.96 11.17 10.15
Approx break
even units
under each plan
(at maximum
capacity, When
only one plan is
followed at a
time)
19 14 12 11
Contribution per
day per drone
per trip
1140 1120 NA NA
(19*60) (14*80) - -
Rank based on
Break even
point
I II - -
1 kg *12 = 12
kgs
5 kgs * 11 = 55
kgs
Not feasible Not feasible

13. Note :
It is not possible to achieve break even if only plan C or only plan D
at a time are followed with current capacity. Thus it is suggested
that only Plan A or plan B can are feasible to execute if only one
plan a time are executed.

14. Plans A B C D
Rank based on
per day
profitability
I IV III II
Rank based on
unit profitability
I II II II
Rank based on
break even
achievability
I II NA NA
CONCLUSION :
More and more of items under plan A should be accepted with short range drone
based services. For items with heavy weights, long range drone are suggested to
use.
It is suggested that company's decision to use only short range drone services is only
useful if items under plan A and plan B are accepted.
Thus company should also use the long range drone based services to achieve higher
profitability and then only items under plan C and plan D can be accepted with goal of
break even and profitability