REPORT

ON AN ECONOMIC PROJECT
UNDERSTANDING THE BUSINESS OF A SMALL
RETAILER

SUBMITTED BY:AMIT MEHLA (PGDM-G LBSITM)

SUBMITTED TO:PROF. MEGHA JAIN

DATE OF SUBMISSION
01 JAN 2015

INTRODUCTION
DevIn Infotech is a small Xerox and internet cafe shop in Vijaynagar,
Indore established by Devendra Kumar on 5 August 2013.
In his shop he has a Xerox machine for providing xerox copy, colour
printer and 7 computers for the use of internet cafe. Besides that he
also sales stationery items and recharge coupons of different mobile
network providers. In this report we try to analyze when his
breakeven point reached and whats his monthly total revenue and
profit.
First of all we summarize his initial capital that he put when he
established his shop followings are the items and there cost:Items

Cost (in Rs.)

Xerox machine
7 computers

2,00,000
70,000

Epson colour printer

Table chairs

10,000
4,500

2 Fan
2 Tube light

3,250
650

fitting charges

13,000

Total

=301400

So Devendra Kumar start with initial capital of Rs. 301400 it doesnt

include initial advance monthly rent that cost him to Rs. 15,000
monthly.

Now let us see his monthly cost on stationery and other items
Items
Shop rent
Electricity charges
Recharge coupons
A4 sheets bundle(100 bundle)
12 dozen pen
File cover(150 cover Rs 7 each)
File cover2 (100 covers Rs 17
each)
Natraj pencil HB (10 pack)
Broadband charges
Envelope white 100 pcs
Envelope A4 size 100 pcs
Calculator citizen 30 piece
Navneet registers ( 100 pcs)
Classmate registers (100 pcs)
Rough registers (100 pcs)
Other expenses
Total

Cost
15,000
4,500 (app.)
5000
17,000
575
1050
1700
250
1100
60
350
3000
3300
5650
2500
1000
=62035

Here we assume he only buy Navneet registers of MRP 35, Classmate

registers of MRP 60, Rough registers of MRP 30 only and MRP Rs. 5
pens only.
We take above listed products on an average he can purchase more
then it if he found demand is very high or even less then it when
demand is low generally during schools and colleges holiday.

Now while listing his sales or profit we are assuming that items that
he purchase in a month he sold out all below is the list that he charges
from the customers
Items
Recharge coupons
A4 sheet printout
A4 sheet xerox
Internet printout

Amount that he charge

Based on customer
requirement
Rs. 1/each printout
Rs. 0.50/each xerox
Rs. 10/each printout

Saving
Rs. 0.075/Rs. 1
Rs. 0.66/printout
Rs. 0.50/Xerox
Rs. 9.66/printout