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More Convenient Store: RENT

This document summarizes the costs of operating a more convenient store over a month. It details the rent at Rs. 2,75,080, electricity charges at Rs. 77,947.53, staff costs of Rs. 1,30,000 for 9 employees, and other costs like promotions, utilities, repairs and maintenance totaling Rs. 2,32,000. The total costs were Rs. 6,64,948 and sales were Rs. 30,95,401.85, giving a gross profit of Rs. 24,30,453.85. A break-even analysis was then performed, identifying fixed costs of Rs. 4,78,000 and variable costs of Rs. 1,86,948.

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Jessica Varma
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© Attribution Non-Commercial (BY-NC)
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53 views

More Convenient Store: RENT

This document summarizes the costs of operating a more convenient store over a month. It details the rent at Rs. 2,75,080, electricity charges at Rs. 77,947.53, staff costs of Rs. 1,30,000 for 9 employees, and other costs like promotions, utilities, repairs and maintenance totaling Rs. 2,32,000. The total costs were Rs. 6,64,948 and sales were Rs. 30,95,401.85, giving a gross profit of Rs. 24,30,453.85. A break-even analysis was then performed, identifying fixed costs of Rs. 4,78,000 and variable costs of Rs. 1,86,948.

Uploaded by

Jessica Varma
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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MORE CONVENIENT STORE

RENT:TOTAL AREA (SFT) RENT (Per SFT) TOTAL RENT Rs. Rs. 2645 104.00 2,75,080.00

ELECTRICITY CHARGES:UNITS DEMAND CHARGES ENERGY CHARGES 52 9185 RATE 200 6.95 TAX 5% TOTAL AMT 10400 63835.75 3711.78 Rs. 77,947.53

STAFF COST:TOTAL NUM OF WORKERS SALES MANGER ASST SALES MANAGER COMMERCIAL WORKERS 1 2 8 TOTAL STAFF COST RS. 17,000.00 RS. 35,000.00 RS. 56,000.00 Rs. 1,30,000.00 NO OF PPL AT THE STORES 1 TOTAL SALARY RS. 22,000.00

OTHER COSTS:SALES PROMOTION & ADVERTISEMENT UTILITIES REPAIRS & MAINTAINENCE HOUSE KEEPING & PEST CONTROL SECURITY Rs. 88,000.00 Rs. 17,000.00 Rs. 33,000.00 Rs. 38,000.00 Rs. 52,000.00

COMMUNICATION TOTAL Rs.

Rs. 4,000.00 2,32,000.00

EBIDTA:TOTAL SALES PER MONTH

Rs. 30, 95,401.85 Rs. 6,64,948.00 Rs. 24, 30,453.85

TOTAL COST EBIDTA

ANALYSIS AND INTERPRETATION:Break-even analysis is a widely used technique to study the cost-volume-profit relationship. It determines break-even point, where the level of sales at which there is no profit and no loss. At this point, total cost is equal to sales revenue.

First all costs are separated into variable and fixed costs:VARIABLE COSTS
UTILITIES REPAITS & MAINTAINENCE Rs. 88,000.00 Rs. 17,000.00

FIXED COSTS
STAFF COST RENT HOUSE KEEPING & PEST CONTROL SECURITY Rs. Rs. 1,30,000.00 2,76,931.50

COMMUNICATION ELECTRICITY CHARGES TOTAL

Rs. 4,000.00 Rs.77,947.53 Rs. 1,86,948.00

Rs. Rs. Rs.

33,000.00 38,000.00 4,78,000.00

CONTRIBUTION:Contribution is the difference between sales and marginal cost of sales. It is also known as Contribution Margin (Cm) or Gross Margin. CONTRIBUTION = = SALES - VARIABLE COST
Rs. 30, 95,401.85 - Rs. 1,86,948.00

Rs.

29,08,453.85

BREAK-EVEN SALES:BREAK-EVEN SALES


(Total Fixed Cost / Contribution Margin)* Sales Rs. 5,08,724.62

BREAK-EVEN CHART:-

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