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MATH REPORT SUBMITTED TO SIR: ABDULLAH. Fantastic six H UZAIFA T ARIQ (4107) I STABRAQ A LIES M OOMAL (4160) M UHAMMAD W ASIF A LI K HAN (4124) S YED.

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Presentation on theme: "MATH REPORT SUBMITTED TO SIR: ABDULLAH. Fantastic six H UZAIFA T ARIQ (4107) I STABRAQ A LIES M OOMAL (4160) M UHAMMAD W ASIF A LI K HAN (4124) S YED."— Presentation transcript:

1 MATH REPORT SUBMITTED TO SIR: ABDULLAH

2 Fantastic six H UZAIFA T ARIQ (4107) I STABRAQ A LIES M OOMAL (4160) M UHAMMAD W ASIF A LI K HAN (4124) S YED M UHAMMAD U ZAIR A BID (4152) M UHAMMAD T AHA S HAMIM (4590) R OOMAN M UHAMMAD K HAN (4615)

3 INTRODUCTION OF ICEBAR  The ICEBAR has started their business on 16 th Feb 2009. This is a family business which is owned by four partner. They all are equally partner in this organization.  Owner`s has also a factory of ice cream namely “PICINIC FOODS”. They also take order for marriages, parties, picnic etc.  They are running their factory from 25 to 30 years. They are one of the largest supplier in ice cream market.

4  Owner usually spent their most of the time in ICE BAR rather than their factory. The owner comes to shop at 06:30 approximately.  There are currently two employees in their organization and their equal income is 17000/=  The Picnic Foods is very famous in Mawa Matka Kulfi.  The product of ICE BAR are: Cones, Ice cream shakes, Kulfi, Faluda, cold coffee, etc INTRODUCTION OF ICEBAR

5 Executive summary At the time of starting business their investment and expenses 250,000/= for machine, 50,000/= for generator, 200,000/= for furniture, 35,000/= on rent expense, 26,000/= for shop expense 17,000/= for wages The cost of 10 litres ice cream is 1,500/= and gets 70 scoops on 10 litres. The price of scoops is 30/= per scoops. ICE BAR sells 160 scoops on normal days. The sells of chocolate flavor is 50% while sells of strawberry is 30% and vanilla is 20%.

6 Description Revenue Total revenue Variable cost Fixed cost Total cost Profit Break-even Product mix Make or buy decision

7 Revenue : Price of 1 scoop = 30/= Revenue = Price*Quantity = 30x X TOTAL REVENUE: Total revenue = 30 X

8 Variable cost per scoops : Cost of 10 litres ice cream =1,500/= Scoops on 10 litres 70 scoops  1,500 70  21.42  21.5/= per Scoops

9 Variable cost per scoops : Variable cost per scoops = 21.5 X /= Fixed cost: Rent expense = 35,000/= Shop expense = 26,000 /= Employees wages expense = 17,000/= Total Fixed cost = 78,000/= TOTAL cost: Variable Cost + Fixed Cost = Total Cost 21.5 X + 78,000 = Total Cost

10 Profit : Total Revenue - Total Cost =Profit Total revenue =30 X Total Cost =21.5 X +78,000  30 X- (21.5 X+ 78,000)  30 X- 21.5 X- 78,000  8.5 X- 78,000 Profit = 8.5 X- 78,000

11 Break-even: Break-even = Fixed cost price-variable cost = 78,000 30-21.5 = 78,000 8.5 = 9176.4 = 9176.4 scoops

12 Product mix: The sells of chocolate flavor is 50% while sells of strawberry is 30% and vanilla is 20%. FlavorsQuantityProfit Margin / Scoop (Price – V.C) Total Profit Margin Chocolate58.542.5 Strawberry38.525.5 vanilla28.517 Total =85

13 Break-even = Fixed cost contribution margin = 78,000 85 = 917.64 Chocolate = 917.64 * 5 = 4588.2 Strawberry = 917.64 * 3 = 2752.92 Vanilla = 917.64 * 2 = 1835.28

14 Buy or make decision: He is the great manufacturer of ice cream that`s why he should have to preferred the make decision. He is the market leader in ice cream market in that particular area because he has the power of taste.


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