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Managerial Economics Presentation

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Vinit Khushalani
Vinit Khushalani

The document discusses Harvey Battery House, a leading battery manufacturer in India, including details about production quantities and costs, types of batteries produced, sales and profits over the past year. It then calculates the company's break-even point in units and rupees, finding that selling at least 72 batteries priced at Rs. 4,100 each or generating over Rs. 290,300 in monthly revenue would allow the company to cover its fixed costs without profit or loss.

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Submitted to : Submitted by : Prof. Amit Tiwari Vinit Khushalani Section 1st
Introduction • Harvey Battery House, Bhopal • The owner of Harvey Battery is Mr. Harsh Bajpai • Start his Business from his home. • Harvey Battery is the India’s third largest Advanced Battery. • Harvey Battery House believe on manpower. • HBH Manufacture the batteries 500 to 700 per month.
Type of Batteries to be Manufacture S.NO. MODEL AMP* PLATES KILOGRA COGS* M 1 350 35 9 10 3157 2 750 75 11 14 4851 3 900 90 13 18 5621 4 1000 100 15 22 6270 5 1200 120 17 35 7546 6 1500 150 21 41 9009 7 1800 180 25 48 10395
Types and Uses of Batteries AMP* Kilogram Plates Uses of Batteries 35 10 9 Maruti , Santo, Alto, Brio. Etc. 75 14 11 Loading vehicles 90 18 13 Old Tractor 100 22 15 New Tractor 120 35 17 Buses, Truck, 150 41 21 Army Truck, Some Special type of Inventor 180 48 25 Inventor *AMP : AMPERE
Batteries’s Weight cars : Maruti, alto800, Brio, 10 Loading, 14 Inventor, 48 Old Tractor, 18 New Tractor, 22 Army Truck, 41 Buses, Truck, 35
Production Of The Year Production (₹) 900000 800000 700000 600000 500000 400000 Production (₹) 300000 200000 100000 0
Fixed Cost of the Firm (Per Month) • Labours : 9 labours each paid amount ₹ 10000 per month = ₹ 90000 • Rent : ₹ 2000 rent per month for the room which is used to manufacture the batteries • Water : ₹ 200 bill per month for the water which is used in the manufacture of batteries. • Electricity: ₹ 700 (approx.) for used in the manufacture the batteries. • 30% Margin Of the Production.
Variable Cost of the Firm According to the quantity of batteries: • Copper Lead ₹130 to ₹150 per kg • Separator used ₹3 to ₹5 per plate • Nylon container ₹350 to ₹500 per container • Cp acid ₹550 to ₹700 per can • Red oxide ₹120 to ₹135 per kg • Grey oxide ₹115 to ₹120 per kg • Lignin ₹300 to 450 per kg • Dynaform ₹250 to ₹275 per kg • Transport charges ₹5000 to ₹6000 per month
Possible Break Even Point…. • Now calculating Break Even Point each Battery : • Let suppose I take 12 volt (35 AMP) Battery. • If he deal only 12volt (35 AMP) Battery, then how many batteries he sale to come his Break Even Point (no profit, no loss). • Suppose he sale 12 volt (35 AMP) each battery in ₹4100, variable cost is ₹2800 of each battery • And fixed cost is ₹92900. • Contribution = Sale price – Variable cost • Contribution = ₹4100- ₹2800 • Contribution = ₹1300 per month.
To be continued…. • (i)Break Even Point (Qtty) = Fixed Costs Contribution per unit • Break Even Point (Qtty) =₹92900 • ₹1300 • Break Even Point (Qtty) = 72 units (approx.) per month. • In the 72 units of 12 volts (35 AMP) battery firm cover his fixed cost.Firm sale above 72 units to make his profit of the firm.
To be continued… (ii)Break Even Point (in ₹) =Fixed Costs • PV Ratio • [PV Ratio = Contribution per unit • Sales price per unit • PV Ratio = ₹1300 • ₹4100 • PV Ratio = .32] • Break Even Point (in ₹) =₹92900 • ₹.32 • Break Even Point (in ₹) = ₹290300 (approx.) per month • If the firm sale above ₹290300 the amount to make his profit.
Managerial Economics Presentation

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Managerial Economics Presentation

  • 1. Submitted to : Submitted by : Prof. Amit Tiwari Vinit Khushalani Section 1st
  • 2. Introduction • Harvey Battery House, Bhopal • The owner of Harvey Battery is Mr. Harsh Bajpai • Start his Business from his home. • Harvey Battery is the India’s third largest Advanced Battery. • Harvey Battery House believe on manpower. • HBH Manufacture the batteries 500 to 700 per month.
  • 3. Type of Batteries to be Manufacture S.NO. MODEL AMP* PLATES KILOGRA COGS* M 1 350 35 9 10 3157 2 750 75 11 14 4851 3 900 90 13 18 5621 4 1000 100 15 22 6270 5 1200 120 17 35 7546 6 1500 150 21 41 9009 7 1800 180 25 48 10395
  • 4. Types and Uses of Batteries AMP* Kilogram Plates Uses of Batteries 35 10 9 Maruti , Santo, Alto, Brio. Etc. 75 14 11 Loading vehicles 90 18 13 Old Tractor 100 22 15 New Tractor 120 35 17 Buses, Truck, 150 41 21 Army Truck, Some Special type of Inventor 180 48 25 Inventor *AMP : AMPERE
  • 5. Batteries’s Weight cars : Maruti, alto800, Brio, 10 Loading, 14 Inventor, 48 Old Tractor, 18 New Tractor, 22 Army Truck, 41 Buses, Truck, 35
  • 6. Production Of The Year Production (₹) 900000 800000 700000 600000 500000 400000 Production (₹) 300000 200000 100000 0
  • 7. Fixed Cost of the Firm (Per Month) • Labours : 9 labours each paid amount ₹ 10000 per month = ₹ 90000 • Rent : ₹ 2000 rent per month for the room which is used to manufacture the batteries • Water : ₹ 200 bill per month for the water which is used in the manufacture of batteries. • Electricity: ₹ 700 (approx.) for used in the manufacture the batteries. • 30% Margin Of the Production.
  • 8. Variable Cost of the Firm According to the quantity of batteries: • Copper Lead ₹130 to ₹150 per kg • Separator used ₹3 to ₹5 per plate • Nylon container ₹350 to ₹500 per container • Cp acid ₹550 to ₹700 per can • Red oxide ₹120 to ₹135 per kg • Grey oxide ₹115 to ₹120 per kg • Lignin ₹300 to 450 per kg • Dynaform ₹250 to ₹275 per kg • Transport charges ₹5000 to ₹6000 per month
  • 9. Possible Break Even Point…. • Now calculating Break Even Point each Battery : • Let suppose I take 12 volt (35 AMP) Battery. • If he deal only 12volt (35 AMP) Battery, then how many batteries he sale to come his Break Even Point (no profit, no loss). • Suppose he sale 12 volt (35 AMP) each battery in ₹4100, variable cost is ₹2800 of each battery • And fixed cost is ₹92900. • Contribution = Sale price – Variable cost • Contribution = ₹4100- ₹2800 • Contribution = ₹1300 per month.
  • 10. To be continued…. • (i)Break Even Point (Qtty) = Fixed Costs Contribution per unit • Break Even Point (Qtty) =₹92900 • ₹1300 • Break Even Point (Qtty) = 72 units (approx.) per month. • In the 72 units of 12 volts (35 AMP) battery firm cover his fixed cost.Firm sale above 72 units to make his profit of the firm.
  • 11. To be continued… (ii)Break Even Point (in ₹) =Fixed Costs • PV Ratio • [PV Ratio = Contribution per unit • Sales price per unit • PV Ratio = ₹1300 • ₹4100 • PV Ratio = .32] • Break Even Point (in ₹) =₹92900 • ₹.32 • Break Even Point (in ₹) = ₹290300 (approx.) per month • If the firm sale above ₹290300 the amount to make his profit.