FUSION BOARDS

PROJECT BY - ADITI AGARWAL

HARSH TECKCHANDANI
SIDDHANT CHAWLA
NIDHI KALRO
DESCRIPTION

▸ Mirror + Iron board = Fusion Boards

PER PRODUCT

FIXED COST

List Rupees

Rent 58

Welding Machine 4

Salaries 164

Electrodes Machine 8

TOTAL 234
WELDING MACHINE

▸ 63000 Rupees for Machinery estimating life 3 years.

▸ 63000/3 = 23000 rupees costing per year.

▸ 23000/12 = 1917 per month estimated

▸ 1917/26 = 74 rupees per day

▸ 74/20 = 4 rupees per product

▸ ( 20 Ironing boards estimated everyday )

ELECTRODES MACHINERY

▸ 2,50,000 Rupees for machinery estimated life 5 years.

▸ 2,50,000/5 = 50,000 Rupees for 1 year.

▸ 50,000/12 = 4167 Rupees estimated per month

▸ 4167/26 = 160 Rupees per day

▸ 160/20 = 8 Rupees per product

▸ ( 20 Ironing boards estimated everyday )

RENT

▸ Vasai 30,000 Rupees/ 3600 Sq. ft per month.

▸ Total rent for 1 year 3,60,000 Rupees.

▸ 30,000/26 = 1,155 Rupees per day

▸ 1,155/20 = 58 Rupees per product

▸ ( 20 Ironing boards estimated everyday )

SALARIES
▸ 9 number of employees and 1 technical supervisor

▸ Per Employee 7,000 Rupees/ per month

▸ Salary for the Tech Supervisor 22,000 Rupees per month

▸ 85,000 total for salaries per month

▸ 85,000/26 = 3,270 Rupees per day

▸ 3,270/20 = 164 Rupees per product

▸ ( 20 Ironing boards estimated everyday )

PER PRODUCT

VARIABLE COST

List Rupees

Raw Materials 1,150

Electricity 8

Freight out 22

TOTAL 1,180
PER PRODUCT

RAW MATERIALS
LIST Rupees
Cold rolled Steel rods 240
Metal rivets 10
Rubber Tips 4
Oil based paint 50
Degreasing agents 30
Wooden Base 186
Mirror ( Already in shape ) 560
Pasting agents ( glue ) 50
Cushion with cover 20
ELECTRICITY

▸ 4167 Rupees per month (estimated)

▸ 4167/26 = 160 Rupees per day

▸ 160/20 = 8 Rupees per product

▸ ( 20 Ironing boards estimated everyday )

PER PRODUCT

TOTAL COST

▸ TC = Fixed cost + Variable cost

▸ Fixed cost = 234 Rupees

▸ Variable cost = 1,180 Rupees

▸ TC = 1,414 Rupees
BREAK EVEN POINT
▸ BEP (in units) = TFC/ (SP - TVC)

▸ TFC = 14,53,000 Rupees Yearly

▸ TVC = 1,180 Rupees

▸ SP = 1,999 Rupees

▸ 14,53,000/ (1,999 - 1,180) = 1,774th unit

▸ Each month we produce 520 units (20*26)

▸ Therefore our BEP will be achieved in 4th month of our business.

EQUATIONS

FUNCTIONS
▸ Cost Function

TC = 1180x + 234 (TC = Vx + Fixed)

▸ Revenue Function

TR = 1999x (Selling Price*No. of units)

▸ Profit Function

n = R - C = (1999x) - (1180x + 234)

= 1999x - 1180x - 234

= 819x - 234
EQUATIONS

▸ Average Cost Function

AC = 1180 + 234/x

▸ Average Revenue Function

AR = 1999