Molded Chalks

Round Dustless Round Coated Triangular

Chalk Dustless Chalks dustless Chalks
18% 27% 19%
Production 36750 56160 40160
Labour (Hours) 3969 9491 6787
Per hour Production 9.26 5.92 5.92
Per Unit Labour 0.11 0.17 0.17
Labour wage per hour 52
Labour Wage per unit 5.6 8.8 8.8

Total Cost 206388 493534 352926

 Extruded Chalks

Round & Triangular

jumbo Chalks Total
36%
74250 207320
10247 30494
7.25 6.80
0.14 0.15

7.2

532818 1585666
 Molded Chalks

Round Coated
Round Dustless Chalk Dustless Chalks

Production 36,750.00 56,160.00

Plaster of Paris per unit Kg 4.80 4.00
Glue per Unit Liter 1.60 1.33
white cement per unit Kg 1.60 2.67
Caco3 Per Unit Kg - -

Total Material Needed

Plaster of Paris 176,400.00 224,640.00
Glue 58,800.00 74,880.00
white cement 58,800.00 149,760.00
Caco3 - -

Ending Planned Material

Plaster of Paris 1,550.00 1,450.00
Glue 780.00 1,460.00
white cement 890.00 1,870.00
Caco3 - -

Total Needed
Plaster of Paris 177,950.00 226,090.00
Glue 59,580.00 76,340.00
white cement 59,690.00 151,630.00
Caco3 - -

Beginning
Plaster of Paris 1,890.00 1,950.00
Glue 1,350.00 1,350.00
white cement 2,230.00 2,110.00
Caco3 - -

Material To Be Purchased
Plaster of Paris 176,060.00 224,140.00
Glue 58,230.00 74,990.00
white cement 57,460.00 149,520.00
Caco3 - -

Cost Of Material
Plaster of Paris 55.00 55.00
Glue 200.00 200.00
white cement 40.00 40.00
Caco3 3.90 3.90

Material Cost to Be purchased

Plaster of Paris 9,683,300.00 12,327,700.00
Glue 11,646,000.00 14,998,000.00
white cement 2,298,400.00 5,980,800.00
Caco3 - -
Total
halks Extruded Chalks

Triangular Round & Triangular

dustless Chalks jumbo Chalks Total

40,160.00 74,250.00 207,320.00

4.57 -
1.14 1.33
2.29 2.67
- 4.00

183,588.57 - 584,628.57
45,897.14 99,000.00 278,577.14
91,794.29 198,000.00 498,354.29
- 297,000.00 297,000.00

1,560.00 - 4,560.00
870.00 1,240.00 4,350.00
1,760.00 950.00 5,470.00
- 8,706.00 8,706.00

185,148.57 - 589,188.57
46,767.14 100,240.00 282,927.14
93,554.29 198,950.00 503,824.29
- 305,706.00 305,706.00

1,830.00 - 5,670.00
1,520.00 1,210.00 5,430.00
2,170.00 3,250.00 9,760.00
- 9,750.00 9,750.00

183,318.57 - 583,518.57
45,247.14 99,030.00 277,497.14
91,384.29 195,700.00 494,064.29
- 295,956.00 295,956.00

55.00 55.00 55.00

200.00 200.00 200.00
 40.00 40.00 40.00
3.90 3.90 3.90

10,082,521.43 - 32,093,521.43
9,049,428.57 19,806,000.00 55,499,428.57
3,655,371.43 7,828,000.00 19,762,571.43
- 1,154,228.40 1,154,228.40
108,509,749.83
 Raw Material
Molded Chalks Units Produced Per Unit Cost
Rounded Dustless Chalk 36,750.0 648.0
Rounded Coated Dustless Chalk 56,160.0 593.3
Triangular Dustless Chalk 40,160.0 571.4

Extruded Chalks
Round and triangular jumbo Chalk 74,250.0 388.9

Total Production 207,320.0

Variable Overhead
Fixed Overhead
Total Overhead
Total Cost
aw Material Labor Cost
Total Raw Material Total Labor Per Unit Variable Overhead Total per Unit
23,814,000.0 206,388.0 653.6 12.2 665.8
33,321,600.0 493,534.1 602.1 12.2 614.3
22,948,571.4 352,926.1 580.2 12.2 592.4

28,878,300.0 532,818.0 396.1 12.2 408.3

108,962,471.4 1,585,666.2

2,533,422 12
5,847,240 28
8,380,662 40
118,928,799
 Production
Molded Chalks

Round Dustless Round Coated Triangular dustless

Chalk Dustless Chalks Chalks
Expected Sales 36940 56750 40670
Ending Inventory 8750 7650 6740
Begning Inventory 8940 8240 7250
Units to be produced (budgeted Production) 36750 56160 40160

Ending Inventory (Cost) 6,072,848.22 4,915,470.25 4,183,116.08

Begning Inventory 6,204,715.79 5,294,571.87 4,499,642.67
Units to be produced (budgeted Production) 25,505,962.54 36,085,334.52 24,924,917.20

Sales 27,705,000 42,562,500 30,502,500

 Extruded Chalks TOTAL

Round & Triangular

jumbo Chalks
72560 206920
11250 34390
9560 33990
74250 207320

4,910,997.72 20,082,432.27
4,173,256.73 20,172,187.06
32,412,584.93 118,928,799.19

39,908,000 140,678,000
 Budgeted Cash Flow
Quarter 1 Quarter 2 Quarter 3 Quarter 4

Recipts from Customers 10,154,760 8,462,300 8,462,300 6,769,840

Payment
wages Payable 402,312 402,312 482,775 321,850
Material Payable 36,904,740 30,753,950 30,753,950 24,603,160
Other Expense Payable 1,891,629 1,891,629 1,891,629 1,891,629

Account Receivable
Debit Credit
Begning 48,356,000 Cash Received 33,849,200
Sales - Closing 14,506,800

Total 48,356,000 Total 48,356,000

Wages Payables
Debit Credit
begning 560,000 Paid Amount 1,609,250
wages 1,585,666 closing 536,417

Total 2,145,666 Total 2,145,666

Material Payable
Debit Credit
Begning 45,260,000 Paid Amount 123,015,800
Purchases 108,509,750 Remaining 30,753,950

Total 153,769,750 Total 153,769,750

Other Payable
Debit Credit
Begning 2,560,000 Paid Amount 7,566,516.00
Expenses 5,847,240 Remaining 840,724

Total 8,407,240.00 Total 8,407,240.00

 Income Statement
Round Coated Triangular dustless
Round Dustless Chalk Dustless Chalks Chalks
Sales 27,705,000 42,562,500 30,502,500
C.O.G.S 24595976.7084546 34863862.7832015 24094389.7102991
Gross Profit 3,109,023 7,698,637 6,408,110
Expenses 1041853.39378738 1600573.36484661 1147054.07486012
Net Profit product wise 2,067,170 6,098,064 5,261,056
Depriciation expense
Net Profit

Income Statement with 5% reduced Prices

Round Coated Triangular dustless
Round Dustless Chalk Dustless Chalks Chalks
Sales 26,319,750 40,434,375 28,977,375
C.O.G.S 24,595,977 34,863,863 24,094,390
Gross Profit 1,723,773 5,570,512 4,882,985
Expenses 1,041,853 1,600,573 1,147,054
Net Profit product wise 681,920 3,969,939 3,735,931
Depriciation expense
Net Profit

Sensitivity

Rounded Dustless Rounded Coated

Chalk Dustless Chalk

Cost of the Products 694.04 642.55

Price 750 750
profit/loss per unit 55.96 107.45
Units Sold 36940 56750
Total Profit 2067169.9 6098063.9

if Price Decrease by 5% The demand will increase by 7%

Price 712.5 712.5
Cost 694.04 642.55
Profit/loss per unit 18.46 69.95
units Sold 39525.8 60722.5
Total Profit 729654.290601121 4247834.57158853
If Price decreases by 10% The Demand will Increase by 15%
Price 675 675
Cost 694.04 642.55
Profit/loss per unit -19.04 32.45
units Sold 42481 65262.5
Total Profit -808829.6 2118085.9

If Price decreases by 15% The Demand will Increase by 18%

Price 637.5 637.5
Cost 694.04 642.55
Profit/loss per unit -56.54 -5.05
units Sold 46640.444 71652.55
Total Profit -2637041.2 -361496.5

If prices Increase by 5% The demand will decrease by 7%

Price 787.5 787.5
Cost 694.04 642.55
Profit/loss per unit 93.4602029712522 144.954869637919
units Sold 34354.2 52777.5
Total Profit 3210750.50491499 7650355.63231527
 Round & Triangular
jumbo Chalks Total
39908000 140,678,000
29628366.3469445 113,182,596
10,279,634 27,495,404
2046477.59212811 5,835,958
8,233,156 21,659,446
856,490.00
20,802,956

Prices
Round & Triangular
jumbo Chalks Total
37,912,600 133,644,100
29,628,366 113,182,596
8,284,234 20,461,504
2,046,478 5,835,958
6,237,756 14,625,546
856,490
13,769,056

Sensitivity

Triangular Dustless Round and triangular

Chalk jumbo Chalk Total

620.64 436.53
750 550
129.36 113.47
40670 72560
5261056.2 8233156.1 21659446.0

712.5 522.5
620.64 436.53
91.86 85.97
43516.9 77639.2
3997446.39987968 6674398.98519231 15649334.2
 675 495
620.64 436.53
54.36 58.47
46770.5 83444
2542427.1 4878709.5 8730392.93

637.5 467.5
620.64 436.53
16.86 30.97
51349.942 91614.256
865741.1 2837006.7 704210.132

787.5 577.5
620.64 436.53
166.859631542681 140.966869637919
37823.1 67480.8
6311148.52980197 9512557.13666248 26684811.8
 Financial Position
Year ended 31 December 2016
Amount in Rupees in 000
Rs Rs

Land 1,250,800
PP&E 962,500
Accumulated Dep 856,490 1,356,810
Current Assets
Finished Inventory 20,002
Raw Material 1,374
Account Recv: 48,356
Cash & Cash equivalent 18,520
Total Assets 2,695,861

Equity
Share Capital Rs. 10 2,550,150
Retained earning 97,331 2,647,481

Liabilities
Wages Payable 560
material Payable 45,260
other Payables 2,560

Total Equity 2,695,861

Making the Ink Of the marker

Quantity Quantity Measure Cost (Rupees) Ratio

preservative Liters 700 1
additives Liters 500 2
solvent Liters 200 1
Water Liters 10 1

Making the Body

Quantity Quantity Measure Cost Ratio

plastic rinse Liter 40 3
Mixture of Powder for TIP KG 20 1
Total

Labor No. of labors labor hours per day chargers per day working days

Making the Ink 2 12 600 26

Making the rinse and marker 4 12 500 26
making the nip 2 12 600 26
finalizing 2 12 500 26

Profit and Loss statement (Markers) Per Unit

Sales 22,500,000 4,500

C.O.G.S 20,365,000 4073
contribution Margin 2,135,000 427
Expenses 316,800
Net Profit 1,818,200

Investment 25,000,000

ROI 7%

Break Even units 58548.0093676814

 cost of producing the ink for
Recipe for producing 1 200 markers (each marker Ink for one
liter ink took 5 ML of INK) Marker per unit
0.2 140 0.7 70
0.4 200 1 100
0.2 40 0.2 20
0.2 2 0.01 1
382 1.91 191

Cost per
Receipe for producing Cost of Producing one marker with
one marker Markers ink
0.75 30
0.25 5 36.91 3691
4073

wages per month Per Year

7200 86400
6000 72000
7200 86400
6000 72000