Group Assignment Man. Acc. - MBA MANAGERIAL ACCOUNTING...

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MBA MANAGERIAL ACCOUNTING GROUP ASSIGNMENT FLY ASH BRICK PROJECT: FEASIBILITY STUDY USING CVPANALYSIS SUBMITTED BY:
SYEDA VIZARATH FATHIMAFly 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. Routine Expenses Cost Per Month Cost Per Year Cost for Five Years Building Rent 50,000 600,000 3,000,000Administrative Cost 10,000 120,000 600,000 Office Supply 5,000 60,000 300,000 Electricity 10,000 120,000 600,000Miscellaneous 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 100,000 1,200,000 6,000,000 Office Assistant20,000 240,000 1,200,000 Watchman 15,000 180,000 900,000 Drivers 25,000 300,000 1,500,000 Sharma as ProductionManager 50,000 600,000 3,000,000 Total Rs 210,000 Rs 2,520,000 Rs 12,600,000 ***Included Rajiv Sharma inpersonnel cost because he will work full time as the project manager Financial Structure: Initial Investment: Rs 10,000,000 Equity 6,000,000 Monthly Interest on Loan Annual Interest on Loan 5 Year Interest on Loan Loan 4,000,000 40,000 480,000 2,400,000

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