Contribution margin 1449000000 1260000000 189000000

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Contribution margin = 1449000000 – 1260000000 =189000000 Cm ratio = (189000000/1449000000) = 0.1304 Fixed cost= Site Electricity: Tk 60000/ project + Site Salary: Tk 95000/ project + Site Machinery + Tk 105000/ project + Site Common Costs: Tk 267000/ project. + Lift Installation: Tk 568000/ project+ Gardening: Tk 273000/ project = 1368000 Breakeven= 1368000/0.1304 =10490797.55 PROJECT: BAYS SELSTE, GULSHAN: Total Sales (single + rooftop) = [ Tk 22000 x 3950 sqft x 11 ] + 91300000=1047200000 Variable cost=3901- 5000 sqft=Tk 20000 x11 x 3950 + 20000 x 4150 =952000000 Contribution margin=1047200000-952000000 =95200000 Cm ratio=95200000/1047200000=9.09%=0.0909 Breakeven=1502000/0.0909=16523652.37 Fixed cost= Site Electricity: Tk 60000/ project + Site Salary: Tk 95000/ project+ Site Machinery: Tk 105000/ project+ Site Common Costs: Tk 267000/ project.+ Lift Installation: Tk 568000/ project + Gardening: Tk 273000/ project+ Pool installation: Tk 134000/ project = 1502000 7
4. 1 apartment customization at Chayaneer & Lyra Chayaneer Lyra Revenue (3600x25000) 90000000 90000000 (-) less variable cost Food lift/site 42000 42000 Cabinets 72000 72000 CAC 90000 90000 Variable cost (original) 64800000 90000000 Total variable cost (65004000) (90204000) Contribution margin 24996000 13296000 (-) Total fixed cost (1095000) (1368000) Net income 23901000 11928000 In Conclusion, both the project customizations for individual apartments result to a positive net operating income. Personally, it would be more rational to accept the customization of one customer for the apartments in different projects (project Chayaneer and Lyra). 8
5. Particular Budget (m) Actual (m) variance Cash inflow, sales and rental 396 239 157 U Cash outflow for expenses 208 235 27 U Cash inflow variances from sales and rental is unfavorable by 157 m which indicates that Bay has received less money from sale of apartments and rental of apartments than expected. This was an unfavorable variance may have occurred because lower number of potential customers bought and rented the apartment. Cash outflow is unfavorable of 27 this may be because of higher customization costs that the consumers demanded for. 9
6. (PMC) project management cells responsibility is allocating costs & monitoring its overall project life cycle for chayaneer, lyra and seleste. The pmc department at bay needs to fulfill this process to ensure the responsibility budgeting. By adapting different budgetary methods pmc can adjust the fluctuated costspmc can also adapt self imposed budgetary methods, which is more realistic as different departments of the organization can set standards realistically based on their experience and knowledge and will be held accountable if the objectives of the budget aren’t met. The performance can be appraised and feedback can be gained until the decline of the project. 10

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