Monthly Annual

Opportunity cost 2500 30000

Watch
phone booth
photocopy
business (100 units) for 300 days 30000 100 Refurbished Units
Interest@15%
Interest@10%
paper
toner
Power

FC
drum 800
film 2000
bill 250
rent 100
maintenance 1000
ANNUAL FC 4150
 9 am - 10 pm
costs costs
Per unit cost 35000 New 50000
26250 37500
17500 25000
0.2 0
0.032 0
0.04 0
 Monthly Annual
Opportunity cost 2500/3 833.3333 10000
Watch
phone booth
photocopy
VOLUMNEbusiness (100 units) for 300 days 30000 100 Refurbished
Interest@15%
Interest@10%
paper
toner
Power
SP
Contribution
Contribution net
net profit (contributions-
totalfc)
BREAKEVEN

COSTS
FIXED COSTS
drum
film
bill (assume 1/3 attribute
to photocopy)
rent (assume 1/3 attribute
to photocopy)
maintenance
ANNUAL FC
Interest
Annual Depreciation
Annual Opportunity cost
Total
Variable costs
Paper
Toner
Power Consumption
 9 am - 10 pm
costs costs
Units Per unit cost 35000 New 50000
5250 37500
3500 25000
30000 0.2 6000
30000 0.032 960
30000 0.04 1200
1
0.728
21840

-2460
33379.120879 24300

400
1000

1000

400
1000
3800
3500
7000
10000
24300

6000
960
1200
 Monthly Annual
Opportunity cost 2500/3 833.3333 10000
Watch
phone booth
photocopy
VOLUMNEbusiness (100 units) for 300 days 30000 100 Refurbished
Interest@15%
Interest@10%
paper
toner
Power
SP
Contribution
Contribution net
net profit (contributions-
totalfc)
BREAKEVEN

COSTS
FIXED COSTS
drum
film
bill (assume 1/3 attribute
to photocopy)
rent (assume 1/3 attribute
to photocopy)
maintenance
ANNUAL FC
Interest
Annual Depreciation
Annual Opportunity cost
Total
Variable costs
Paper
Toner
Power Consumption
 9 am - 10 pm
costs costs
Units Per unit cost 35000 New 50000
5250 37500
3500 25000
30000 0.2 6000
30000 0.032 960
30000 0.04 1200
0.75
0.478
14340

-9960
50836.820084 24300

400
1000

1000

400
1000
3800
3500
7000
10000
24300

6000
960
1200
 Monthly Annual
Opportunity cost 2500/3 833.3333 10000
Watch
phone booth
photocopy
VOLUMNEbusiness (100 units) for 300 days 30000 100 Refurbished
Interest@15%
Interest@10%
paper
toner
Power
SP
Contribution
Contribution net
net profit (contributions-
totalfc)
BREAKEVEN

COSTS
FIXED COSTS
drum
film
bill (assume 1/3 attribute
to photocopy)
rent (assume 1/3 attribute
to photocopy)
maintenance
ANNUAL FC
Interest
Annual Depreciation
Annual Opportunity cost
Total
Variable costs
Paper
Toner
Power Consumption
 9 am - 10 pm
costs costs
Units Per unit cost 35000 New 50000
5250 37500
3500 25000
30000 0.2 6000
30000 0.032 960
30000 0.04 1200
0.5
0.228
6840

-17460
106578.94737 24300

400
1000

1000

400
1000
3800
3500
7000
10000
24300

6000
960
1200
 Monthly Annual
Opportunity cost 2500/3 833.3333 10000
Watch
phone booth
photocopy
VOLUMNEbusiness (100 units) for 300 days 30000 100 Refurbished
Interest@15%BANC
Interest@10%
paper
toner
Power
SP
Contribution
Contribution net
net profit (contributions-
totalfc)
BREAKEVEN

COSTS
FIXED COSTS
drum
film
bill (assume 1/3 attribute
to photocopy)
rent (assume 1/3 attribute
to photocopy)
maintenance
ANNUAL FC
Interest
Annual Depreciation
Annual Opportunity cost
Total
Variable costs
Paper
Toner
Power Consumption
 9 am - 10 pm
costs costs
Units Per unit cost 35000 New 50000
5250 37500
3500 25000
30000 0.2 6000
30000 0.032 960
30000 0.04 1200
1
0.728
21840

-4210
35782.967033 26050

400
1000

1000

400
1000
3800
5250
7000
10000
26050

6000
960
1200
 Monthly Annual
Opportunity cost 2500/3 833.3333 10000
Watch
phone booth
photocopy
VOLUMNEbusiness (100 units) for 300 days 30000 100 Refurbished
Interest@15%
Interest@10%
paper
toner
Power
SP
Contribution
Contribution net
net profit (contributions-
totalfc)
BREAKEVEN

COSTS
FIXED COSTS
drum
film
bill (assume 1/3 attribute
to photocopy)
rent (assume 1/3 attribute
to photocopy)
maintenance
ANNUAL FC
Interest@10%
Annual Depreciation
Annual Opportunity cost
Total
Variable costs
Paper
Toner
Power Consumption
 9 am - 10 pm
costs costs
Units Per unit cost 35000 New 50000
5250 7500
3500 5000
30000 0.2 6000
30000 0.032 960
30000 0.04 1200
1
0.728
21840

-4102.86
35635.792779 25942.86

400
1000

1000

400
1000
3800
5000
7142.8571429
10000
25942.857143

6000
960
1200
If Ravinder targets profit of Rs. 2000 per month how many copies he should make at different prices?
Monthly Annual
Opportunity cost 2500/3 833.3333 10000
Watch
phone booth
photocopy
VOLUMNEbusiness for 300 days 38383.046 100 Refurbished
Interest@15%
Interest@10%
paper
toner
Power
SP
Contribution
Contribution net
net profit (contributions-
totalfc)
BREAKEVEN

COSTS
FIXED COSTS
drum
film
bill (assume 1/3 attribute
to photocopy)
rent (assume 1/3 attribute
to photocopy)
maintenance
ANNUAL FC
Interest@10%
Annual Depreciation
Annual Opportunity cost
Total
Variable costs
Paper
Toner
Power Consumption
erent prices?

9 am - 10 pm
costs costs
Units Per unit cost 35000 New 50000
5250 7500
3500 5000
38383.045526 0.2 7676.609
38383.045526 0.032 1228.257
38383.045526 0.04 1535.322
1
0.728
27942.86

2000
35635.792779 25942.86
`

400
1000

1000

400
1000
3800
5000
7142.8571429
10000
25942.857143

7676.6091052
1228.2574568
1535.321821
If Ravinder targets profit of Rs. 2000 per month how many copies he should make at different prices?
Monthly Annual
Opportunity cost 2500/3 833.3333 10000
Watch
phone booth
photocopy
VOLUMNEbusiness for 300 days 58457.86 100 Refurbished
Interest@15%
Interest@10%
paper
toner
Power
SP
Contribution
Contribution net
net profit (contributions-
totalfc)
BREAKEVEN

COSTS
FIXED COSTS
drum
film
bill (assume 1/3 attribute
to photocopy)
rent (assume 1/3 attribute
to photocopy)
maintenance
ANNUAL FC
Interest@10%
Annual Depreciation
Annual Opportunity cost
Total
Variable costs
Paper
Toner
Power Consumption
erent prices?

9 am - 10 pm
costs costs
Units Per unit cost 35000 New 50000
5250 7500
3500 5000
58457.860132 0.2 11691.57
58457.860132 0.032 1870.652
58457.860132 0.04 2338.314
0.75
0.478
27942.86

2000
54273.759713 25942.86
`

400
1000

1000

400
1000
3800
5000
7142.8571429
10000
25942.857143

11691.572026
1870.6515242
2338.3144053
 Monthly Annual
Opportunity cost 2500/3 833.3333 10000
Watch
phone booth
photocopy
VOLUMNEbusiness (60units) for 300 days 18000 60 Refurbished
Interest@15%
Interest@10%
paper
toner
Power
SP
Contribution
Contribution net
net profit (contributions-
totalfc)
BREAKEVEN

COSTS
FIXED COSTS
drum
film
bill (assume 1/3 attribute
to photocopy)
rent (assume 1/3 attribute
to photocopy)
maintenance
ANNUAL FC
Interest@10%
Annual Depreciation
Annual Opportunity cost
Total
Variable costs
Paper
Toner
Power Consumption
 9 am - 10 pm
costs costs
Units Per unit cost 35000 New 50000
5250 7500
3500 5000
18000 0.2 3600
18000 0.032 576
18000 0.04 720
0.75
0.478
8604

-17338.9
54273.759713 25942.86

400
1000

1000

400
1000
3800
5000
7142.8571429
10000
25942.857143

3600
576
720
 Monthly Annual
Opportunity cost 2500/3 833.3333 10000
Watch
phone booth
photocopy
VOLUMNEbusiness (100 units) for 300 days 30000 100 Refurbished
Volumne retail (30 units) for 300 days 9000 30 Interest@15%
Interest@10%
paper
toner
Power
Sp@retail
SP@business
Contribution@business
Contribution@retail
Contribution net
net profit (contributions-
totalfc)
BREAKEVEN

COSTS
FIXED COSTS
drum
film
bill (assume 1/3 attribute
to photocopy)
rent (assume 1/3 attribute
to photocopy)
maintenance
ANNUAL FC
Interest@10%
Annual Depreciation
Annual Opportunity cost
Total
Variable costs
Paper
Toner
Power Consumption
 9 am - 10 pm
costs costs
Units Per unit cost 35000 New 50000
5250 7500
3500 5000
30000 0.2 6000
30000 0.032 960
30000 0.04 1200
1
0.75
0.478
0.728
20892

-5050.86
54273.759713 25942.86

400
1000

1000

400
1000
3800
5000
7142.8571429
10000
25942.857143

6000
960
1200
Wehere is the info????
increase FC by 1500
Monthly Annual
Opportunity cost 2500/3 833.3333 10000
Watch
phone booth
photocopy
VOLUMNEbusiness (100 units) for 300 days 30000 100 Refurbished
Interest@15%
Interest@10%
paper
toner
Power
SP
Contribution
Contribution net
net profit (contributions-
totalfc)
BREAKEVEN

COSTS
FIXED COSTS
drum
film
bill (assume 1/3 attribute
to photocopy)
rent (assume 1/3 attribute
to photocopy)
Delievery
maintenance
ANNUAL FC
Interest@10%
Annual Depreciation
Annual Opportunity cost
Total
Variable costs
Paper
Toner
Power Consumption
 9 am - 10 pm
costs costs
Units Per unit cost 35000 New 50000
5250 7500
3500 5000
30000 0.2 6000
30000 0.032 960
30000 0.04 1200
1
0.728
21840

-5602.86
37696.232339 27442.86

400
1000

1000

400
1500
1000
5300
5000
7142.8571429
10000
27442.857143

6000
960
1200
Identify the cost and suggest the cost that would be relevant under following two

decision situations. 1. Should he do the photocopy business and how? 2. Deciding on

which of the three businesses to focus Monthly Annual

Opportunity cost 2500/3 833.3333 10000
Watch
phone booth
photocopy
VOLUMNEbusiness (100 units) for 300 days 30000 100 Refurbished
Interest@15%
Interest@10%
paper
toner
Power
SP
Contribution
Contribution net
net profit (contributions-
totalfc)
BREAKEVEN

COSTS
FIXED COSTS
drum
film
bill (assume 1/3 attribute
to photocopy)
rent (assume 1/3 attribute
to photocopy)
Delievery
maintenance
ANNUAL FC
Interest@10%
Annual Depreciation
Annual Opportunity cost
Total
Variable costs
Paper
Toner
Power Consumption
Check FEASIBILITY OF BREAKEVEN UNITS
IN ALL PREVIOUS CALCULATIONS. IF
DEMAND EXISTS, and SUPPLY iS NOT
SATURATED, WHY NOT UNTIL MR+MC)

9 am - 10 pm
costs costs
Units Per unit cost 35000 New 50000
5250 7500
3500 5000
30000 0.2 6000
30000 0.032 960
30000 0.04 1200
1
0.728
21840

-5602.86
37696.2323390895 27442.86

400
1000

1000

400
1500
1000
5300
5000
7142.8571428572
10000
27442.8571428571

6000
960
1200