Managerial Acct Project Final Draft.docx - United Arab...

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No.Student’s NameStudent’s ID1.Nayef Ahmed Saeed Al Mahri2010062092.Mohammed Huzaifa Shekfah2011506381United Arab Emirates UniversityCollege of Business & EconomicFoundations of Accounting DepartmentFly AshBrickProject(CVPAnalysis)
Spring 2016Fly Ash Brick Project(CVP Analysis)Introduction:Rajiv Sharma had worked in the construction industry. In April 2013, he had done a business plan and market research to explore the potential of using fly ash bricksin construction projects such as housing and infrastructure projects.Establishing a fly ash brick manufacturing unit was the “dream project” of Rajiv Sharma and his long-time friend Alok Gupta.According to the initial analysis, he decided to establish a plant to produce four million bricks per year.1-Analyze various expanses into fixed costs, variable cost and initial investment. Capital Cost: It is be one-time expensed as a fixed value for the project, or it is the total cost that can be required to prepare a project to a commercially operable position.Capital Cost Building Modification 1,400,000 Water Supply Arrangement 100,000 Machinery 2,000,000 Trucks 3,000,000 Payload Machine 1,500,000 Total 8,000,000 2
Fixed Cost:It is the cost value that does not change by increasing or reduction in the quantity of merchandise or services produced such as Employees costs or Routine Expenses.Fixed Cost Monthly Annual Per 5 years Routine Expenses Building Rent 50,000 600,000 3,000,000 Administrative cost 10,000 120,000 600,000 Office supply 5,000 60,000 300,000 Electricity 10,000 120,000 600,000 Miscellaneous 20,000 240,000 1,200,000 Total 95,000 1,140,000 5,700,000 Personnel Cost Workers 100,000 1,200,000 6,000,000 Office Assistant 20,000 240,000 1,200,000 watchman 15,000 180,000 900,000 Drivers 25,000 300,000 1,500,000 Production Manager 50,000 600,000 3,000,000 Total 210,000 2,520,000 12,600,000 Total Fixed Cost 305,000 3,660,000 18,300,000 Variable Cost:

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