Mumbai % Delhi % Total % % Mumbai

Income 642,854 100% 137,731 100% 780,585 100% 82%

Operating Expenses 212,104 33% 38,367 28% 250,471 32% 85%
Direct Selling Expenses 122,821 19% 19,327 14% 142,148 18% 86%
Gen Adm & Selling Exp 166,377 26% 97,295 71% 263,672 34% 63%
Cash Flow Profit/ (loss) 141,552 22% (17,258) -13% 124,294 16% 114%
Less: Depreciation 141,977 22% 22,980 17% 164,957 21% 86%
Net Profit/ (Loss) (425) -0.07% (40,238) -29% (40,663) -5% 1%
% Delhi
18%
15%
14%
37%
-14%
14%
99%
Moti Heera Analysis Moti Heera Case Solution
Alternative Choice Decisions: Differencial Costs
Mumbai Poster Paint Commercial Location Total Company TOTAL
EX 3 EX 4 EX 5
Income 355,231 206,261 81,363 642,855
Variable Cost 107,621 72,305 54,719 234,645
Contribution to Mumbai Fixed OH 247,610 133,956 26,644 408,210
Sunk Cost 96,155 32,344 128,499
Escapable Fixed Cost 89,651 51,502 2,300 143,453
Total Fixed Cost 185,806 83,846 2,300 271,952
Contributin to Local Company OH 61,804 50,110 24,344 136,258
Mumbai OH 89,482
Contribution to Company OH and Profits 46,776

Fixed Cost to Sales 0.52 0.41 0.03 0.42

Break Even Income 266,565 129,103 7,024 428,274
Location Cont./ Sales Ratio 0.17 0.24 0.30 0.21
Cont to Sales (P/v Ratio) 0.70 0.65 0.33 0.63

Delhi Poster Paint Commercial

EX 6 EX 7 EX 8
Income 99,899 23,318 14,516 137,733 780,588
Variable Cost 40,619 3,867 9,884 54,370 289,015
Contribution to Delhi Fixed OH 59,280 19,451 4,632 83,363 491,573
Sunk Cost 13,608 4,068 (28,993) 99,506
Escapable Fixed Cost 15,938 5,518 592 112,356 255,809
Total Fixed Cost 29,546 9,586 592 83,363
Contributin to Local Company OH 29,734 9,865 4,040 43,639 179,897
Delhi OH 31,011 120,493
Contribution to Company OH and Profits 12,628 59,404

Company OH 100,061
Company Profit/Loss (40,657)

Fixed Cost to Sales 0.30 0.41 0.04 0.61 0.58

Break Even Income 49,791 11,492 1,855 137,733
Location Cont./ Sales Ratio 0.30 0.42 0.28 0.32
Cont to Sales (P/v Ratio) 0.59 0.83 0.32 0.61

Prepared by Prof Keyur Thaker

 Moti Heera Case Solution

185,806

Prepared by Prof Keyur Thaker