CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

1) Contribution Margin and Ratio

This is data analysis for red mix cement pvt ltd company calculation representation workflow
data matrix.

This is research between three years calculation below table

FINDINGS

Red mix cements company very good profit but according to compiteritor it will less,2014-
2015 very good percentages like 47% and 43%,2015 overall percentages 45.34%

CONCLUSION

Its average profile and loss based on red mix Cement Company past three years and below
graphs to representation of the calculation.
GRAPHS1

Chart Title
48
47.4

47

46
45.24
45

44 43.8

43

42
2013-2014 2014-2015 2015-2016

Contribution margin ratio based on ratory values

FINDINGS

This contribution ratio values based on cements company at Bangalore and cost profits in 2014-
2015 50% and 49%,only 2016 48% based on that values.

CONCLUSION
This ratio contribution not much failed .it will manage based on the leverages and Rotary.

2) BREAKEVEN SALES

RED MIX CEMENT COMPANY SALES BELOW TABLES

Year Fix Cost Contribution margin Breakeven sales

ratio

2013-2014 53.78 47.56 11189.45

2014-2015 54.678 43.678 1262

2015-2016 52.345 45.42 1170.56

Breakeven sales=fixed cost/contribution ratio

FINDINGS

This contribution overall profit very good and 2014-2015 54% and 2016 52% simply good.

CONCLUSION

The breakeven deals estimations of Radial drills are decrease from rs.1262 to rs1170.86MT. It
demonstrates decay incline.

ROTARY LEVERAGES SALES

Year Fix Cost Contribution margin Breakeven sales

ratio

2013-2014 62.78 50.56 1220.45

2014-2015 60.678 49.678 1230

2015-2016 58.345 48.42 1210.56

FINDINGS

Rotary leverages very much failures bcos based on year they will doing more contribution ratio
values 2015-2016 58% more rotary values.

CONCLUSION

The breakeven deals estimations of Rotary levers are decay from rs.1230.5 to rs.1230.86MT.
It indicates decay incline.

BREAKEVEN POINT
 Year Fix Cost Contribution margin Breakeven sales
ratio

2013-2014 53.785 11.56 4652.45

2014-2015 55.678 11.678 4848

2015-2016 58.345 10.42 4997.56

BREAKEVEN PONT=FIXED COST/CONTRIBUTION RATIO

FINDINDS

This red mix cement company breakeven point average amount successes from the driller
machine latest point values 58.456%
ROTARY LEVERAGES VALUES

Year Fix Cost Contribution margin Breakeven sales

ratio

2013-2014 62.785 14.56 4366.45

2014-2015 60.678 13.678 4484

2015-2016 58.345 11.42 5041.56

FINDINGD

This is rotary values based on their profit latest sales 58.45% remaining everything averages’

CONCLUSION
 The breakeven point in which in units for Rotary levers takes expanded in 2014 – 2015
and indicate optimistic pattern.

MULTIPLE PRODUCT BREAKEVEN POINT VALUES

PRODUCT SALES CUMULATIVE R/V CONTRIBUTION CONTRIBUTION
RATIO
VALUES CUMULATIVE
RD 241734 241734 47.90 114534 114534
RL 279 613 521678 50.67 142789` 256710
Findings:
It creates that the benefit volume proportion of Radial drills is 47.4% and Rotary levers
is 50.8%. The Rotary lever sales and contribution is high.
Conclusion:
In the year 14, best item is Rotary lever the profit volume ratio likewise high. In the
breakeven is rs.2, 62,898.
 CONTRIBUTION AND CUMULATIVE SALES OF 2015

PRODUCT SALES CUMULATIVE R/V CONTRIBUTION CONTRIBUTION

RATIO
VALUES CUMULATIVE
RD 241734 241734 47.90 114534 114534
RL 279 613 521678 50.67 142789` 256710

BREAKEVENSALES=FIXED COST/TOTAL CONTRIBUTION* TOTAL SALES.

135138/150258*535480

Rs.289240

Findings:

It creates that the benefit Capacity proportion of Radial drills is 43.8% and Rotary lever
is 49.56%. The Rotary lever sales and contribution is high.

Conclusion:

In the year 14, best item is Rotary lever the profit volume ratio likewise high.

In the breakeven is rs.2,89,204.

CUMULATIVE SALES AND CONTRIBUTION 2016

PRODUCT SALES CUMULATIVE R/V CONTRIBUTION CONTRIBUTION

RATIO
VALUES CUMULATIVE
RD 235174 241734 45.90 106123 106123
RL 241756 476567 48.67 116567` 223478

BREAKEVENSALES=FIXED COST/TOTAL CONTRIBUTION* TOTAL SALES.

132580/223570*476980

Rs.283567

Findings:

It creates that the benefit volume proportion of Radial drills is 45.24% and Rotary lever
is 48.3%. The Rotary lever sales and contribution is great.

Conclusion:

In the year 2015, greatest item is Rotary lever the profit volume ratio likewise
extraordinary. In the breakeven is Rs2, 83,305

MARGIN OF SAFETY VALUES

Year Breakevensales sales Margin of safty ratio

2013- 1118.90 241289 140897 99.45
2014

2014-
1262 201115 159345 99.80
2015

2015-
2016 1270 123175 234005 99.03

Margin of safety = sales – breakeven sales

Margin of safety

Margin of safety = ________________ *100

sales

Findings:

It creates that the margin of safety proportion in the year 14 –99.53%, 15-99.51%, 16 –
99.5%. It is continued stable for the three years. It is the quality of the business.

Conclusion:

The expansive Margin of the safety that the business is sound in Radial drills.

Graph Viewing Margin of safety.

 Chart Title

99.53

99.52

99.51
99.53
99.5
99.51
99.49
99.5
99.48

2013-2014
2014-2015
2015-2016

ROTARY LEVERES VALES

Year Breakevensales sales Margin of safty ratio

2013- 1220.90 279345 278765 99.45

2014

2014-
1230.56 274098 274678 99.80
2015

2015-
2016 1210 241378 241678 99.03

Findings:

It creates that the Margin of safety proportion in the year 14 – 99.56%, 15 –99.55%, 16
– 99.50%.

It is continued firm for the three years. It is the quality of the business.

conclusion:
 The expansive Margin of safety that the business is sound in Rotary lever.

DESIRED TARGET PROFIT

PROFILT FROM GIVEN SALES

Year Contribution Fix cost profit

2013-2014 114678 55.789 5980.45

2014-2015 114345 55.345 5890.34

2015-2016 106789 52.456 53456.56

contribution = sales- P/V ratio

 profit = contribution – fixed cost

Findings:

It creates that the benefit given from offers of Radial for the 2013 - 2014 are 59,496 and

2014 – 2015are 58,947 and 2015 – 2016 are 53,443.

conclusion:

profit is given from offers of Radial Drills are decay from Rs59,496 to Rs53,443.

ROTARY LEVERAES

Year Contribution Fix cost profit

 2013-2014 142908 62.789 80173

2014-2015 14367 60.345 75190

2015-2016 11689 58.456 58310

Findings:
It creates that the benefit assumed from offers of Rotary lever for the 2013 - 2014
Are 80.173 and 2014 – 2015 are 75,190 and 2015 – 2016 are 58.310.
Conclusion:
The Revenue given offers of Rotary levers are decrease from Rs80,173 to Rs58,310.

Profit

2013-2014 2014-2015 2015-2016

DEGREE OF OPERATING LEVERAGES

Finance leverage=EBIT/profit

Operating leverage=contribution/profit

Combined leverage=contribution/EBIT

Calculation for 2014

Finance leverage=69500/54743=1.27

Operating leverage=128441/69500=1.85

Combined leverage=128441/54743=1.90

For 2015

Finance leverage=61234/47134=1.29

Operating leverage=119123/61234=1.61

Combined leverage=119123/47135=2.53
For 2016

Finance leverage=54120/33567=1.29

Operating leverage=111782/54120=2.09

Combined leverage=111782/33564=3.33

Year FL OL CL

2013-2014 1.27 1.85 2.35

2014-2015 1.29 1.95 2.53

2015-2016 1.61 2.07 3.33

Findings:

It creates that financial leverage remains in 2014 – 1.27 expanding 1.29 - 2015 the expansion
1.61 - 2016 the expansion and working leverage will be in 2014 – 1.85increasing 1.95 - 2015
The expansion 2.07 - 2016 the expanding and combined leverage is in 2014 – 2.35 expanding
2.53 - 2015 the expansion 3.33 - 2016 the expanded.

Conclusion:

High operating leverage is great subsequently the income is expanding each year. Optimistic
Budgetary leverage is understood of shows that the proportion on venture. Arranged sum was
extra than settled cost of their utilization.
TREND ANALYSIS

X = 2014
 Y=a+bX

2012 = 1, 49,427 + 10,929.5(3) = 1, 82,215.5

2013 = 1, 49,427 + 10,929.5(4) = 1, 93,145

2014 = 1, 49,427 + 10,929.5(5) = 2, 04,074.5

2015 = 1, 49,427 + 10,929.5(6) = 2, 15,004

2016 = 1, 49,427 + 10,929.5(7) = 2, 25,933.5

Findings:

It creates that a cost for the following five year is pattern examination. The costs keep

in expanding in the year 2012 – 1,82,215, 2013 – 1,93,145, 2014 – 2,04,074, 2015– 2, 15,004,

2016 – 2,25,933.

Conclusion:

It is construed that pattern anticipated for the costs of MIX CONCRETE to be expanded

all things considered. The organization makes the move to control its use.
2015

2016
2016

STATEMENT VIEWING COMPARATIVE PROFITABILITY OF RADIAL DRILL AND ROTARY LEVER OF

2013 – 2014

RADIAL ROTARY
PARTICULARS UNITS DRILLS UNITS LEVERS TOTAL

A. sales value of production 241 2,41,702 266 2,79,615 5,21,317

VARIABLE COST

Raw Materials 75 75,145 81 85,131 1,60,276

Variable Over Heads 44 44,369 54 57,045 1,05,850

B. Variable Cost 119 1,19,514 135 1,42,176 2,61,690

CONTRIBUTION

C.CONTRIBUTION 122 1,22,188 130 1,37,439 2,61,690

LESS: FIXED COST 97,250

Profit 1,62,377

SATTEMENT VIEWING COMPARTIVE PROFITABILITY OF RADIAL DRILL AND ROTARY LEVER OF

2014 – 2015

RADIAL ROTARY
PARTICULARS UNITS DRILLS UNITS LEVER TOTAL

A. sales value of production 261 2,61,115 261 2,74,716 5,35,831

VARIABLE COST

Raw Materials 78 75,145 79 83,152 1,58,297

Variable Over Heads 39 39,078 51 53,605 92,683

B. Variable Cost 114 1,14,223 129 1,36,157 2,50,960

CONTRIBUTION

C.CONTRIBUTION 147 146,892 132 1,38,559 2,84,871

LESS: FIXED COST 1,02,400

PROFIT 1,82,471

The income of the radial drills in addition rotary lever has optimistic trends in the yea of 2014 –
2015.

STATEMENT VIEWING COMPARATIVE PROFITABILITY OF RADIAL DRILL AND ROTARY LEVERS

OF 2015 – 2016
 RADIAL ROTARY
PARTICULARS UNITS DRILLS UNITS LEVERS TOTAL

A. Sale Value of Production 248 235,175 264 241,795 4,16,890

VARIABLE COST

Raw Materials 78 72,136 78 70,180 1,42,310

Variable Over Heads 39 37,429 56 50,275 87,704

B. Variable Cost 115 1,09,559 133 1,20,435 2,30,014

CONTRIBUTION

C.CONTRIBUTION 133 1,25,615 136 1,21,340 1,86,876

LESS: FIXED COST 107,400

PROFIT 79,476