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SFAD Week 1

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Case Study 1

% 2019 2020
Sales 100% 1,000,000 1,300,000
Less Cost of Good Sold 60% 600,000 780,000
Gross Profit 40% 400,000 520,000
Less Operating Expenses 20% 200,000 260,000
Earning Before Interest and Taxes 20% 200,000 260,000

b)
Sale 6,000,000

EBIT 1,200,000
Less Opportunity Cost 120,000
Net Earning 1,080,000

This proposal is viable as increase in saving by Rs 1,080,000


Annual T/O 52m
Weekly T/O 1,000,000

Daily T/O 200,000

Mon 200,000 197.26


Tues 200,000 147.95
Wed 200,000 98.63
Thurs 200,000 49.32
Fri 200,000 -
Per Week 493.15

Per Year 25,644

Cost 20,800

Savings 4,844

We will agree with the proposal as it will fetch savings of Rs 4,844 and minimize risk as mention above

C)
Online Deposit
Fidelity Insurance
Post Dated Chqs
Q3
% 2014 % 2015 % 2016
Sales 100% 1,200,000 100% 1,349,933 100% 1,400,000
Less COGS 64% 768,000 66.67% 900,000 70% 980,000
GP 36% 432,000 33.33% 449,933 30% 420,000
Less OpEx 288,000 260,942 84,000
EBIT 144,000 188,991 336,000
Less Interest Expenses - - -
EBT 100% 144,000 188,991 336,000
Tax 50% 50% 72,000 50% 94,495 50% 168,000
EAT 50% 6% 72,000 7% 94,495 12% 168,000

Preventive Measures:
Data Warehouse
Back Up
Secondry location
Cloud

Performance
To check feasibility of price

Sales (Unit Price VC Sales VC FC GP


2500 9.50 6.00 23,750.00 15,000.00 20000 (11,250.00)
5000 9.00 5.75 45,000.00 28,750.00 20000 (3,750.00)
7500 8.50 5.63 63,750.00 42,187.50 20000 1,562.50
10000 8.00 5.00 80,000.00 50,000.00 20000 10,000.00
12500 7.00 4.88 87,500.00 60,937.50 30000 (3,437.50)
15000 6.00 4.88 90,000.00 73,125.00 30000 (13,125.00)
17500 5.00 4.88 87,500.00 85,312.50 30000 (27,812.50)
20000 4.00 4.88 80,000.00 97,500.00 30000 (47,500.00)

Rs 8 should be price in order to get maximum GP

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