analysis and data interpretation

7/31/2019 Analysis and Data Interpretation

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ANALYSIS AND DATA INTERPRETATION

GHEE

TABLE 1

Particulars Oct 2011 Nov 2011

Cost of Sales 28153156 227.39 28458967 229.86

Profit 2237247 42.61 1931436 40.14

B.E.P.

B.E.P. Units (x)

X = TFC(P-V) 123810 126372

B.E.P. Sales (S)

S=X*P=TFC/CMR 412700 421240

P/V RAT 41.04% 40.84%

GRAPH 1

41.04%

40.84%

40.70%

40.75%

40.80%

40.85%

40.90%

40.95%

41.00%

41.05%

Oct 2011 Nov 2011

P/V Ratio

CURD

TABLE 2


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Cost of Sales 23483524 23.77 23281728 24.64

Profit 2203124 2.23 1275064 1.35

B.E.P.

B.E.P. Units (x) 379970 363266

X = TFC(P-V)

B.E.P. Sales (S)

S=X*P=TFC/CMR 2779664 2756197

P/V RAT 21.08% 21.08%

GRAPH 2

21.08% 21.08%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

Oct 2011 Nov 2011

P/V Ratio

PEDA

TABLE 3


Cost of Sales 1961412 183.07 2089803 186.34

Profit 609948 56.93 601797 53.66

B.E.P.


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B.E.P. Units (x)

X = TFC(P-V) 3246 2756

B.E.P. Sales (S)

S=X*P=TFC/CMR 8797 11807

P/V RAT 39.10% 37.73%

GRAPH 3

39.10%

37.73%

37.00%

37.50%

38.00%

38.50%

39.00%

39.50%

Oct 2011 Nov 2011

P/V Ratio

MYSORE PAK

TABLE 4


Cost of Sales 441630 210.3 516191 210.69

Profit 188370 89.7 188370 89.31

B.E.P.

B.E.P. Units (x)

X = TFC(P-V) 42462 49931

B.E.P. Sales (S)


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S=X*P=TFC/CMR 177814 150440

P/V RAT 46.64% 46.56%

GRAPH 4

46.64%

46.56%

46.52%

46.54%

46.56%

46.58%

46.60%

46.62%

46.64%

Oct 2011 Nov 2011

P/V Ratio

MASALA MAJIGE

TABLE 5


Cost of Sales 416217 14.67 449773 15.26

Profit 434943 15.33 434447 14.74B.E.P.

B.E.P. Units (x)

X = TFC(P-V) 6747 6917

B.E.P. Sales (S)

S=X*P=TFC/CMR 20624 21543

P/V RAT 67.50% 65.47%


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GRAPH 5

67.50%

65.47%

64.00%

64.50%

65.00%

65.50%

66.00%

66.50%

67.00%

67.50%

Oct 2011 Nov 2011

P/V Ratio

LASSI

TABLE 6


Cost of Sales 673345 24.8 651135 24.9

Profit 276940 10.2 264115 10.1

B.E.P.

B.E.P. Units (x)

X = TFC(P-V) 6136 5910

B.E.P. Sales (S)

S=X*P=TFC/CMR 23556 22784P/V RAT 47.60% 47.31

GRAPH 6


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47.60%

47.31%

47.15%

47.20%

47.25%

47.30%

47.35%

47.40%

47.45%

47.50%

47.55%

47.60%

Oct 2011 Nov 2011

P/V Ratio

P/V ratio = sales variable cost / sales

Ghee = 270-159.18/270 = 41.04

= 270-159.74/270 = 40.84

Curds = 26-20.52/26 = 21.08

= 26=21./26 = 21.08

Peda = 240-146.17/240 = 39.10

= 240-149.44/240 = 37.73

Mysore Pak = 300-160.08/300 = 46.64

= 300-160.31/300 = 46.56

Masala Majige = 30-9.75/30 = 67.50

= 30.10.36/30 = 65.47

Lassi = 35-18.34/35 = 47.60

= 35-18.44/35 = 47.31


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GRAPH 7

GRAPH SHOWING P/V RATIO OF THE PRODUCTS


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0

10

20

30

40

50

60

70

Ghee Curd P eda Mysore P ak Masala Majige Lassi

Oct-11 11-Nov

TABLE 7

MARGIN OF SAFETY

Margin of safety = Profit / P/V Ratio


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GHEE 15.8% 15.2%

CURDS 8.6% 5.2%

PEDA 23.7% 22.4%

MYSORE PAK 29.9% 29.8%MASALA MAJIGE 51.1% 49.1%

LASSI 29.1% 28.9%

GRAPH 8

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Ghee Curds Peda Mysore Pak Masala Majige Lassi

Oct-11 Nov-11

OCTOBER 2011

TOTAL SALES = 641.18

LESS: TOTAL COST = 551.29

PROFIT = 89.89


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NOVEMBER 2011

TOTAL SALES = 639.03

LESS: TOTAL COST = 554.48

PROFIT = 84.56

COMPARATIVE CVP GRAPH FOR THE MONTHS OF OCTOBER 2011

AND NOVEMBER 2011

TOTAL SALES = 2.15

LESS: TOTAL COST = (3.18)

PROFIT = 5.33

COST SHEET OF MILK FOR THE MONTH OF OCTOBER 2011

TABLE 8

Items of Cost Amount Unit Cost

Procurement 13737027 kgs or 13336919 liters 248455095 18.63

Levy 137370 0.01


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SMP used for standardization 1033850 0.08

PTC from DCS 5160084 0.39

PTC from chilling centers / other dairies 632006 0.05

Chilling center expenses (sal, wages and others) 846906 0.06

P&I expenses 4653954 0.35

Depreciation chilling center 110970 0.01

Cost of milk at dairy Total A 261030235 19.57

PROCESSING COST

Employees cost 4950570 0.37

Consumables 169269 0.01

Conversion 981136 0.07

Electricity, power, water (utilities) 2449324 0.18

Entry tax 45926 0.00

Repairs and maintenance of machineries 650883 0.05

Depreciation 998730 0.07

Total B 10245838 0.77

ADMINISTRATIVE EXPENSES


General administration 2499645 0.19

Employees welfare cost 925158 0.07

Vehicle maintenance 104405 0.01

Interest on loan 420000 0.03

6362319 0.48

Less: amount allocated to other products 1132492 0.08

Total C 5229827 0.39

MARKETING EXPENBSESEmployees cost 2036712 0.15

Marketing expenses 207203 0.03


2348320 0.18


Total D 1930319 0.14

Grand Total = Total A to D 278436219 20.88

Less: Value of excess FAT extracted 21203700 1.59

COST OF MIOLK PROCURED 257232519 19.29

ADD: SELLING AND DISTRIBUTION COSTPouch film 3945692 0.56

Distribution and transportation 2548849 0.36

Parlor / depot expenses 53633 0.01

Incentive to agents 190000 0.03

Advertisement and publicity 0.00 0.00


6842579 0.97


12/33

COST OF MILK SOLD (excluding commission) 264075098 20..26

COST SHEET OF GHEE FOR THE MONTH OF OCTOBER 2011

TABLE 9


Butter 135369 kgs at Rs. 130 17597970 142.14

(quality of ghee produced 123810 liters)


Utilities electricity, power, water etc. 216572 1.75


Administrative expenses 475873 3.84

Repairs and maintenance 59225 0.48

Depreciation 100974 0.82KMF product levy 201156 1.62

Production Cost 19684173 158.99


Agmark charges 24934 0.20

Cost excluding packing 19884751 160.61

Add: Packing cost

Film 184113 1.49

Boxes 184560 1.49

Jars 535176 4.32

Tins 28231 0.23TOTAL COST 20816831 168

TOTAL COST = 168.14

COMMISSION = 27.00

TAXES = 32.25

COST OF SALES = 227.39


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COST SHEET OF CURD FOR THE MONTH OF OCTOBER 2011

TABLE 10


Milk 956347 liters at Rs. 18.78 per liter 17961096 18.18

SMP-2910 kgs at Rs. 142 413320 0.42

(Curds produced 987948 kgs) 0.00





Administrative expenses 533857 0.54Production Cost 20461479 20.71



Add: Packing cost 849463 0.86

TOTAL COST 21507988 21.77

TOTAL COST = 21.77COMMISSION = 2.00

TAXES = 0.00COST OF SALES = 23.77

COST SHEET OF PEDA FOR THE MONTH OF OCTOBER 2011

TABLE 11


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Sugar 90769 8.47

Production of peda 10714 kgs. 0.00









Add: Packing cost

Covers 27726 2.59

Boxes 59310 5.54

Cello tape 2071 0.19

TOTAL COST 1685889 157.35

TOTAL COST = 157.35

COMMISSION = 25.72

TAXES = 8.46


COST SHEET OF MYSORE PAK FOR THE MONTH OF OCTOBER 2011

TABLE 12



Sugar 47960 10.38

Ghee 2598 kgs at Rs. 158.99 per kg 413056 89.41

Production of Mysore Pak 2100 kgs.

G. flour 25080 5.43


15/33









Add: Packing cost

Covers 18567 4.02

Boxes 137047 29.66

Stickers 7731 1.67

TOTAL COST 832985 180.30

TOTAL COST = 180.30

COMMISSION = 30.00TAXES = 29.23


COST SHEET OF MASALA MAJIGE FOR THE MONTH OF OCTOBER

2011

TABLE 13


Curds issued 10214 kgs at Rs. 20.71 211521 7.46

Masala ingredients 6519 0.23

Production 28372 liters


Utilities electricity, power, water etc. 6433 0.23Repairs and maintenance 1762 0.06






Packing cost


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Film 31363 1.11

TOTAL COST 309961 10.92

TOTAL COST = 10.92

COMMISSION = 3.75

TAXES = 0.00COST OF SALES = 14.67

COST SHEET OF LASSI FOR THE MONTH OF OCTOBER 2011

TABLE 14


Curds issued 13982 kgs at Rs. 20.71 per kg. 289567 10.67

Sugar 140019 5.16

Production 27151 literseEmployees cost 36213 1.33








Add: Packing cost

Film 34922 1.29TOTAL COST 537674 19.80

TOTAL COST = 19.80

COMMISSION = 5.00

TAXES = 0.00



17/33

COST SHEET OF MILK FOR THE MONTH OF NOVEMBER 2011

TABLE 15


Procurement 13605055 kgs or 13208791 liters 252870708 19.14

Levy 141350 0.01

SMP used for standardization 899300 0.07

PTC from DCS 5195090 0.39

PTC from chilling centers / other dairies 642160 0.05

Chilling center expenses (sal, wages and others) 897090 0.07

P&I expenses 4834110 0.37

Depreciation chilling center 110970 0.01

Cost of milk at dairy Total A 265590778 20.11PROCESSING COST



Conversion 958235 0.07

Electricity, power, water (utilities) 3146023 0.24

Entry tax 24025 0.00

Repairs and maintenance of machineries 630400 0.05


Total B 10854252 0.82

ADMINISTRATIVE EXPENSESEmployees cost 2413111 0.18

General administration 2619650 0.20

Employees welfare cost 925158 0.07


Interest on loan 420000 0.03

6487069 0.49



18/33

Total C 5239019 0.40

MARKETING EXPENBSES




2348320 0.18


Total D 1915319 0.15

Grand Total = Total A to D 283599368 21.47

Less: Value of excess FAT extracted 21768300 1.65

COST OF MIOLK PROCURED 261831068 19.82

ADD: SELLING AND DISTRIBUTION COST

Pouch film 3966750 0.56

Distribution and transportation 2526718 0.36

Parlor / depot expenses 68810 0.01

Incentive to agents 205000 0.03

Advertisement and publicity 0.00 0.00


COST OF MILK SOLD (excluding commission) 268702751 20.80

COST SHEET OF GHEE FOR THE MONTH OF NOVEMBER 2011

TABLE 16


Butter 138170 kgs at Rs. 130 17962100 142.14

(quality of ghee produced 126372 liters)





19/33




KMF product levy 201156 1.59



Agmark charges 24934 0.20


Add: Packing cost

Film 188294 1.49

Boxes 188560 1.49

Jars 550125 4.35

Tins 28645 0.23

TOTAL COST 21294516 168.55

TOTAL COST = 168.55COMMISSION = 27.00

TAXES = 32.25


COST SHEET OF CURD FOR THE MONTH OF OCTOBER 2011

TABLE 17



SMP-2875 kgs at Rs. 142 413320 0.42

(Curds produced 944492 kgs) 0.00




Depreciation 113277 0.11Administrative expenses 533857 0.54




Add: Packing cost 849463 0.86

TOTAL COST 22376629 22.65


20/33

TOTAL COST = 22.65

COMMISSION = 2.00

TAXES = 0.00


COST SHEET OF PEDA FOR THE MONTH OF NOVEMBER 2011

TABLE 18



Sugar 94970 8.47

Production of peda 11215 kgs. 0.00









Add: Packing cost

Covers 29076 2.59

Boxes 62310 5.56

Cello tape 2171 0.19

TOTAL COST 1801395 160.62

TOTAL COST = 160.62



21/33


COST SHEET OF MYSORE PAK FOR THE MONTH OF NOVEMBER

2011

TABLE 19



Sugar 55960 10.38

Ghee 3031 kgs at Rs. 159.02 per kg 481990 89.42

Production of Mysore Pak 2450 kgs.

G. flour 29380 5.45




Depreciation 9957 1.85Administrative expenses 46340 8.60




Add: Packing cost

Covers 21767 4.04

Boxes 160047 29.69

Stickers 9020 1.67

TOTAL COST 973893 180.69

TOTAL COST = 180.69

COMMISSION = 30.00

TAXES = 29.23



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COST SHEET OF MASALA MAJIGE FOR THE MONTH OF

NOVEMBER 2011

TABLE 20


Curds issued 10610 kgs at Rs. 21.59 229070 8.07

Masala ingredients 6680 0.23

Production 29474 liters





Administrative expenses 14156 0.48Production Cost 292440 10.22



Packing cost

Film 32820 1.11

TOTAL COST 330485 11.51

TOTAL COST = 11.51



BREAKEVEN POINT OF EACH PRODUCT

TABLE 21


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GHEE


COST OF SALES 28735729 227.39 39218564 227.86

LESS: RM 17597970 142.14 17962100 142.14

11137759 85.25 14074676 85.72

LESS: VC 2158434 17.08 1311670 17.60

8979325 68.17 12763007 68.12

LESS: FC 1132293 8.96 3213413 8.80

TOTAL VARIABLE COST

PER UNIT (V)

17.08 17.60

CONTRIBUTION MARGIN

PER UNIT (CM) = P-V

51.09 50.52

CMR

(CMR)=1-V/P=CM/P 30.00% 30.00%

B.E.P. UNITS (X)

X=TFC (P-V) 123810 126372

B.E.P. SALES (S)

S=X*P=TFC/CMR 412700 421240

TABLE 22

CURDS


COST OF SALES 23483524 23.77 23281728 24.65

LESS: RM 17961096 18.60 18829837 19.48

5522428 5.17 4451891 5.17

LESS: VC 1896860 1.92 1813425 1.92

2702142 3.25 2382533 3.25

LESS: FC 1234935 1.25 1180615 1.25


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PROFIT 1467207 2.00 1201918 1.07

TOTAL VARIABLE COST

PER UNIT (V)

1.92 1.92

CONTRIBUTION MARGIN

PER UNIT (CM) = P-V

1.33 1.33

CMR

(CMR)=1-V/P=CM/P 13.67% 13.67%

B.E.P. UNITS (X)

X=TFC (P-V) 379980 ` 363266

B.E.P. SALES (S)

S=X*P=TFC/CMR 2779664 2756192

TABLE 23

PEDA


COST OF SALES 1961412 1830.07 2089803 186.34

LESS: RM 1286033 120.03 1382170 123.24

675379 63.04 707633 63.10

LESS: VC 280064 26.14 293833 26.20

3925315 36.90 413800 36.90

LESS: FC 119783 11.18 125384 11.18PROFIT 275533 25.72 160383 23.61

TOTAL VARIABLE COST

PER UNIT (V)

26.14 26.20

CONTRIBUTION MARGIN

PER UNIT (CM) = P-V

36.90 36.90

CMR 0.94


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(CMR)=1-V/P=CM/P 36.90% 36.90%

B.E.P. UNITS (X)

X=TFC (P-V) 3246 2756

B.E.P. SALES (S)

S=X*P=TFC/CMR 8797 11807

TABLE 24

MYSORE PAK


COST OF SALES 895985 210.30 1047393 210.69

LESS: RM 473035 102.39 552803 102.56

422950 107.91 494590 108.13

LESS: VC 121149 57.69 141488 57.75301801 50.22 353103 57.69

LESS: FC 42462 20.22 49931 20.38

PROFIT 259339 30.00 303172 37.31

TOTAL VARIABLE COST

PER UNIT (V)

57.69 57.75

CONTRIBUTION MARGIN

PER UNIT (CM) = P-V

50.22 50.38

CMR

(CMR)=1-V/P=CM/P 23.88% 23.91%B.E.P. UNITS (X)

X=TFC (P-V) 42462 49931

B.E.P. SALES (S)

S=X*P=TFC/CMR 177814 150440


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TABLE 25

MASALA MAJIGE


COST OF SALES 416356 14.67 441013 15.26

LESS: RM 218040 7.69 235750 8.30

198316 6.98 205263 6.96

LESS: VC 58446 2.06 60716 2.06

139870 4.92 144547 4.90

LESS: FC 33195 1.17 33895 1.15

PROFIT 106674 3.75 85076 3.75

TOTAL VARIABLE COST

PER UNIT (V)

2.06 2.06

CONTRIBUTION MARGIN

PER UNIT (CM) = P-V

4.92 4.90

CMR

(CMR)=1-V/P=CM/P 33.54% 32.11%

B.E.P. UNITS (X)

X=TFC (P-V) 6747 6917

B.E.P. SALES (S)

S=X*P=TFC/CMR 20624 21543

TABLE 26


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LASSI


COST OF SALES 673429 24.80 661966 24.90

LESS: RM 429586 15.83 425903 15.88243843 8.97 236063 9.02

LESS: VC 68149 2.15 66944 2.56

175694 6.46 169119 6.46

LESS: FC 39640 1.46 38179 1.46

PROFIT 136054 5.00 130940 5.00

TOTAL VARIABLE COST

PER UNIT (V)

2.51 2.56

CONTRIBUTION MARGIN

PER UNIT (CM) = P-V

6.46 6.46

CMR

(CMR)=1-V/P=CM/P 26.05% 25.94%

B.E.P. UNITS (X)

X=TFC (P-V) 6136 5910

B.E.P. SALES (S)

S=X*P=TFC/CMR 23556 22784

TABLE 27

BEP RANKING

Product Oct 2011 (Units) Nov 2011 (Units) Rank

GHEE 17547.03 15066.63 II

CURDS 95553.82 72180.94 IV

PEDA 1555.98 1251.05 III


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MYSORE PAK 500.90 447.05 I

MASALA MAJIGE 4033.20 3160.03 V

LASSI 7996.20 6582.94 VI

GRAPH 9

0

50

100

150

200

250

300

350

400450

500

550

600

650

700

750

800

850

900

950

1000

GHEE CURDS PEDA MYSORE PAK MASALA

MAJIGE

LASSI

Hundreds

Oct 2011 (Units) Nov 2011 (Units)

P/V Ratio = Sales Variable Cost / Sales

Ghee = 270-159.18/270 = 41.04

= 270-159.74/270 = 40.84

Curds = 26-20.52/26 = 21.08

= 26=21.4/26 = 21.08

Peda = 240-146.17/240 = 39.10

= 240-149.44/240 = 37.73

Mysore Pak = 300-160.08/300 = 46.64


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= 300-160.31/300 = 46.56

Masala Majige = 30-9.75/30 = 67.50

= 30.10.36/30 = 65.47

Lassi = 35-18.34/35 = 47.60

= 35-18.44/35 = 47.31

TABLE 28

MARGIN OF SAFETY

Margin of safety = Profit / P/V Ratio


GHEE 15.8% 15.2%

CURDS 8.6% 5.2%

PEDA 23.7% 22.4%


30/33

MYSORE PAK 29.9% 29.8%

MASALA MAJIGE 51.1% 49.1%

LASSI 29.1% 28.9%

GRAPH 10

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Ghee Curds Peda Mysore Pak Masala Majige Lassi

Oct-11 Nov-11

SUMMARY, CONCLUSION AND RECOMMENDATIONS

This study was basically done to rank the products base don BEP and their

contribution to the profit and to know the minimum production point that has to be

achieved.

Contribution is the difference between the sales volume and the variable costs of

sales. Contribution is a pool of amount from which we arrive at he operating profit.

The analysis of the contribution per unit each product makes towards fixed and

profit leads to find out the total contribution of each product towards the periodic

costs.


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Breakeven analysis is referred to as the level of operations where total cost is equal

to the total revenue of the organization. In other words, it is no profit no loss

situation. It studies the relationship between the sales, variable cost and fixed cost.

This study was undertaken to study the contribution analysis of the product of

BAMUL, Bangalore. This study revealed that out of the milk products in BAMUL

ranked as the best contributor towards the profits with Rs. 10 contribution per unit

increasing by one month. The BEP is Rs. 42264.58. This implies that the company

has to increase the sales through proper mechanisms since there is very low margin

of safety and it is quite close to BEP per annum.

This study also has to further scope for study by changing the units sold to

maximize the profit and to decide the optimum product mix for any researcher.

CONCLUSION

This study was undertaken to study the contribution analysis of the product of

BAMUL, Bangalore. This study revealed that out of the milk product in KMF

ranked as the best contributor towards the profit with Rs. 10 contribution per unit

increasing by one month. The BEP is Rs. 42264.58. This implies that the company

has to increase the sales through proper mechanisms since there is very low margin

of safety and it is quite close to BEP per annum.

This study also has to further scope for study by changing the units sold to

maximize the profit and to decide the optimum product mix for any researcher.


32/33

KEY WORDS

* Contribution

* Variable cost.

* Prime cost

* Product cost.

* Marginal cost.

* Revenue.

* Breakeven.

BIBLIOGRAPHY

1. Cost Accounting

- Horgren, Foster and Datar.

2. Cost Accounting for Management Applications.

- David H. Li.

3. Cost Accounting

- Jophn G. Locker and W. Keither Weltner

4. Introduction to Management

- Hogren, Sundern and Stratton

5. www.google.com.

6. www.bamul.com.


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7. www.en.wikipedia.org.

analysis and data interpretation

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