Burgertown Report Research Paper Example | Topics and Well Written Essays - 1750 words

Burgertown Report - Research Paper compositors case1.2312Staff cost1276640.7494.952Total variant Cost406.952Marginal Contribution2600000.00295.048Fixed Cost83Depreciation Cost25Total Fixed Cost108Profit Before vex 187.048& levy (PBIT)Interest3012% on Rs. 250000Profit Before Tax (PBT)157.048c) Break Even positionFixed Cost / Marginal Contribution 95170.96Per UnitAs you can see above that by producing 95,170.96 units the total sales realized would be equal to the total cost and thus the firm would be under Break Even situation meaning thereby that they would be a no pay no loss situation. d) Margin of Safety Actual Sales - Break Even Sales164829(in volumes)The upstanding is in a better situation as the Margin of Safety is in a a good deal strong position both in terms of quantity as shown above and in role as shown below = Margin of Safety / Total Sales * 100164829 / 260000 * 100 = 63.40% f) No. of units to be produced extra to gain supernumerary profit of Rs. 50,000PARTICU LARSNo. of UnitsRateValueSalesx2.902.90xVariable CostCost of Mealsx1.21.2xStaff Costx0.740.74xTotal Variable Costx1.94xMarginal Contribution0.96x(Sales - Total Variable Cost)Fixed Cost (Break up given below)173000Depreciation Cost25000Total Fixed Cost198000Profit Before Interest 237048& Tax (PBIT)(Stated that the profits would be 50,000 additional than the earlier profitsAlso Marginal Contribution = Fixed Cost + Profit Before Interest & TaxTherefore no. of units produced to achieve an additional profit of Rs. 50,000 would be(237048+198000) /... Some limitations are typically due to the lack of precision in the numbers (e.g., what is the actual price, is it purchase price or animateness cycle price) and getting the precise figures for fixed and variable costs. Beyond that, it is limited by its total concentrate on on the quantitative elements of a business plan and doesnt consider competitive reactions, customer needs, etc.http//books.google.co.in/booksct= vector sum&id=958o8MoaYmM C&dq=high- low+method acting++variable+labour+cost+per+meal+and+the+annual+fixed+labour+cost.&ots=RibYVyeuS7&pg=PA133&lpg=PA133&sig=ACfU3U2ievG4GwJltFY_kQEL94YQYXEaKw&q=high-low+method++variable+labour+cost+per+meal+and+the+annual+fixed+labour+cost.+PPA135,M1