The document summarizes the expenditure profile of Fidaato Software Solutions in Bhopal, India from October 2011 to September 2012. It categorizes expenses as fixed and variable. The highest expense month was September 2012 due to business expansion and increased website usage. The lowest was October 2011 as the business started with limited capital. The break-even point is estimated to be at 24 units or Rs. 2,38,200 in sales based on the existing cost structure. Suggestions to further improve the analysis are welcome.

1. INSTITUTE OF PROFESSIONAL EDUCATION AND
RESEARCH (IPER)
ASSIGNMENT-2, BY MBA, SEC-1, GROUP-6
OF MANAGERIAL ECONOMICS ON
EXPENDITURE PROFILE OF THE
FIDAATO SOFTWARE SOLUTION, BHOPAL
SUBMITTED BY-
SUBMITTED TO-
SANDEEP PATEL
Prof. AMIT TIWARI
SANJEEV MALVIYA
RAHUL GUPTA
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2. S.NO. TOPICS PAGE
NO.
1 Expenditure Profile of the Firm (on monthly basis ) 03
2 Categorization of expenses under fixed and variable heads 04
3 Controllable and Uncontrollable expenses 04
4 Highest and lowest expense months in the duration of one 05
year
5 Possible Break even with existing cost structure 06
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3. Expenditure Profile of the Fidaato Software Solutions,
sonagiri, Raisen Road, Bhopal (on monthly basis)
Oct. 2011-Sep. 2012
EXPENSES Office Internet & Electricity Salary Transpo- White Other Total
(in Rs.) Rent Telephone Bills rtation Board Miscell-
Bills Marker aneous
MONTHS
OCTOBER 7000 1550 1075 10000 2500 150 500 22775
NOVEMBER 7000 1550 1050 10000 2700 180 650 23130
DECEMBER 7000 1550 1100 10000 3000 210 450 23310
JANUARY 7000 1550 1150 10000 2750 180 550 23180
FEBRUARY 7000 1550 1025 10000 2800 260 625 23260
MARCH 7000 1550 1215 10000 2965 310 720 23760
APRIL 7000 1550 1320 10000 3250 320 865 24305
MAY 7000 1550 1465 10000 3500 260 890 24665
JUNE 7000 1550 1486 10000 3689 350 965 25040
JULY 7000 1550 1589 10000 3802 370 1052 25363
AUGUST 7000 1550 1580 10000 3850 390 1150 25520
SEPTEMBER 7000 1550 1545 10000 4052 430 1265 25842
TOTAL 84000 18600 15600 120000 38858 3410 9682 290150
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4. CATEGORIZATION OF EXPENSES UNDER FIXED &
VARIABLE HEADS
FIXED EXPENSES Amount in Rs. VARIABLE Amount in Rs.
EXPENSES
OFFICE RENT 84,000 INTERNET & 18,600
(7000*12) TELEPHONE BILLS
SALARY 1,20,000 ELECTRICITY BILLS 15,600
(10000*12)
TRANSPORTATION 38,858
WHITE BOARD 3,410
MARKER
OTHER 9682
MISCELLANEOUS
TOTAL 2,04,000 TOTAL 86150
CONTROLLABLE & UNCONTROLLABLE EXPENSES
CONTROLLABLE UNCONTROLLABLE EXPENSES
EXPENSES
TELEPHONE BILLS OFFICE RENT
ELECTRICITY BILLS SALARY
OTHER MISCELLANEOUS INTERNET BILLS
EXPENSES
4

5. HIGHEST AND LOWEST EXPENSES MONTHS IN THE
DURATION OF ONE YEAR
Expenses From
(IN Rs.)
Oct. 2011-Sep. 2012
26500
OCTOBER
26000
NOVEMBER
25500
25000 DECEMBER
24500 JANUARY
24000 FEBRUARY
23500 MARCH
23000 APRIL
22500
MAY
22000
JUNE
21500
JULY
21000
EXPENSES AUGUST
SEPTEMBER
INTERPRETATIONS:
HIGHEST EXPENSE MONTH: - September 2012
The business expansion leads to the rise in the expenses like marketing, variable
cost etc. The extensive increase in the usage of websites by SME’S (SMALL
MEDIUM ENTERPRISES).
LOWEST EXPENSR MONTHS: - October 2011
Initially the business was commenced and shortage of capital.
Therefore, the expenses were lowest during the October month
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6. POSSIBLE BREAK EVEN WITH EXISTING COST
STRUCTURE
Selling price per unit 10000
BEP=Fixed Cost Contribution per unit
Contribution Margin=Total Sales (per unit)-Variable
Cost (per unit)
Source :-http://fast4cast.com/break-even-calculator.aspx
Fixed Cost =Rs. 2, 04,000
Total Sales (per unit) =Total Sales/ No. of units Produced
=Rs. 6,00,000/ 60 units =Rs. 10,000
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7. Variable Costs (per unit) = Variable Cost/No. of Units Produced
=Rs. 86150/60 units (websites Designed)
=Rs. 1435.83
Contribution Margin=Total Sales (per unit)-Variable Cost (per unit)
Contribution per unit = Rs. 10,000 - Rs. 1435.83
=Rs. 8564.17
BEP=Fixed Cost Contribution per unit
BEP =Rs. 2, 04,000/Rs. 8564.17
=23.82 units =Rs. 2, 38,200
The firm BEP is when its sales volume is at 24 units approx. and in
Rs. 2,38,200.
THANK YOU!
Valuable Suggestions for further
Improvement are always Welcomed,
if any.
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