Group Assignment Man. Acc. - MBA 5023 MANAGERIAL ACCOUNTING GROUP ASSIGNMENT FLY ASH BRICK PROJECT FEASIBILITY STUDY USING CVP ANALYSIS SUBMITTED BY

# Group Assignment Man. Acc. - MBA 5023 MANAGERIAL...

• 5
• 100% (7) 7 out of 7 people found this document helpful

This preview shows page 1 - 3 out of 5 pages.

MBA 5023 MANAGERIAL ACCOUNTING GROUP ASSIGNMENT FLY ASH BRICK PROJECT: FEASIBILITY STUDY USING CVP ANALYSIS SUBMITTED BY: AAKASH SINHA [1261182008] SANTHANA BARATHI [1262182003] RICHARD NYIRENDA [1261181012] AYUEN MALAAK AJOK [1261181009] ARAVIND KUNA SEGRAN [1262182002] S V P K SATYADEVU [1261181006]
Fly Ash Brick Project: Feasibility Study Using CVP Analysis 1. Classifying the company’s costs/expenses into fixed costs, variable cost and initial investment. Fixed costs: No matter how much volume the company produces, it will have to pay these costs. ***Included Rajiv Sharma in personnel cost because he will work full time as the project manager Financial Structure: ***We are including the financial cost as part of our fixed cost for this project Variable costs: Depending on the production volume, the company will pay a varying amount of operating cost per month. The table below is based on a production volume of 200,000 bricks per month Routine Expenses Cost Per Month Cost Per Year Cost for Five Years 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 Rs 95,000 Rs 1,140,000 Rs 5,700,000 Personnel Cost Cost Per Month Cost Per Year Cost for Five Years Workers