Business Math Final Report

BUSINESS MATHEMAT
GROUP MEMBERS
ABUBAKAR MEHMOOD
ALI RAZA BUTT
(08108061)
(08108065)
GHULAM DASTGIR BUTT
(08108064)
MADIHA HAFEEZ
(08108033)
EMIL BAJWA
(08108158)
SONEX COOKWARE
TABLE OF CONTENTS
TOPICS
(PAGE NO)
1.
2.
3.
4.
ACKNOWLEDGMENT
DEDICATION
EXECTIVE SUMMARY
HISTORY
HISTTORY OF COOKWARE IN WORLD
HISTORY OF COOKWARE IN PAKISTAN
5. HISTORY OF SONEX COOKWARE
HISTORY
MOTO
INTRODUCTION
EXPORT
6. PRODUCT LIST
7. SELECTED PRODUCTS
STYLISH FRY PAN (21 CM)
COOKING VOK (27 CM)
CLASSIC TAWA (30.5)
8. FEATURES
9. USE & CARE
10.
NON-STICK PRODUCTION PROCESS
11.
MARKET SHARE
12.
COOKING VOK
EXPORT
PRODUCTION PROCESS
SHARE OF TOTAL PRODUCTION
RAW MATERIALS
MACHINERY
MACHINE COST AS FIX COST
LABOUR
FIXED COST
VARIABLE COST
SONEX COOKWARE
13.
EXPENDITURES OF PRODUCTION DEPARTMENT

EXPENDITURES OF THE FIX OVER HEAD
TOTAL FIX COST
COST FUNCTION
REVENUE FUNCTION
PROFIT FUNCTION
BREAK EVEN ANALYSIS
QUANTITY DEMANDED
DEMAND FUNCTION
QUANTITY SUPPLIED
SUPPLY FUNCTION
CASH DISCOUNT
INVENTORY
WEIGHTED AVERAGE METHOD
FIRST IN FIRST OUT METHOD
LAST IN LAST OUT METHOD
COST FOR SINGLE PRODUCT
MARKUP ON COST FOR COOKING VOK
MARKUP ON SALE FOR COOKING VOK
MARGINAL PROFIT FROM PROFIT FUNCTION
MARGINAL COST FROM COST FUNCTION
COST FUNCTION FROM MARGINAL COST
REVENUE FUNCTION FROM MARGINAL REVENUE
CLASSIC TAWA (27 CM)
EXPORT
PRODUCTION
RAW MATERIALS
MACHINERY
LABOUR
FIXED COST
VARIABLE COST
TOTAL FIX COST
COST FUNCTION
REVENUE FUNCTION
SONEX COOKWARE
14.
PROFIT FUNCTION
BREAK EVEN ANALYSIS
QUANTITY DEMANDED
DEMAND FUNCTION
QUANTITY SUPPLIED
SUPPLY FUNCTION
CASH DISCOUNT
INVENTORY
WEIGHTED AVERAGE METHOD
FIRST IN FIRST OUT METHOD
LAST IN LAST OUT METHOD
COST FOR SINGLE PRODUCT
MARKUP ON COST FOR COOKING VOK
MARKUP ON SALE FOR COOKING VOK
MARGINAL PROFIT FROM PROFIT FUNCTION
MARGINAL COST FROM COST FUNCTION
COST FUNCTION FROM MARGINAL COST
REVENUE FUNCTION FROM MARGINAL REVENUE
STYLISH FRY PAN
EXPORT
PRODUCTION
RAW MATERIALS
MACHINERY
LABOUR
FIXED COST
VARIABLE COST
TOTAL FIX COST
COST FUNCTION
REVENUE FUNCTION
PROFIT FUNCTION
BREAK EVEN ANALYSIS
QUANTITY DEMANDED
DEMAND FUNCTION
QUANTITY SUPPLIED
SONEX COOKWARE
SUPPLY FUNCTION
ACKNOWLEDGMENT
All the praises are for ALMIGHTY ALLAH whose uniqueness, oneness
and wholeness are absolute. Who gave me enough courage,
knowledge and ability to accomplish this report?
SONEX COOKWARE
All respects are for his Holy Prophet Hazrat Muhammad (Peace Be
Upon Him)
Who enabled us to recognize oneness of our Creator?
My parents who are rising gave me a compassionate heart.
We are so thankful to Mr Khuram Mehtab Cooperation on every step
of this demanding task is highly appreciable. Without her
cooperation it was not possible to complete this task.
DEDICATION
We want to dedicate our project of business mathematics to our parents. As

they gave us such an opportunity of continuous
education after
intermediate so we got admission in Gujranwala Institute of Future
Technology for doing Bachelor in Business Administration. Our teacher Mr
SONEX COOKWARE
khurram Mehtab who was concerned about our project without his guidance
and support we wouldnt have able to deal with this intractable project. His
concern enabled us to enhance our capabilities and concepts during this
course.
EXECTIVE SUMMARY
As everybody here is informed of the project we were tasked and the

procedures we followed during the accomplishment. We were assigned to
implicate various tools regarding business mathematics on the provided data
of our selected organization of Sonex international. First of all we elaborated
the history of cookware in world. How it was originated? Then further we
focused on its origin in Pakistan .we highlighted the history of the
organization its idea generation. Then we dwelled the foundation of Sonex
international. As we moved forward we selected three products been
manufactured in the organization followed by the whole product list. We
elaborated the whole production process starting from first phase to last. Its
market share was highlighted .further we dealt with the intractable task of
SONEX COOKWARE
applying the mathematical tools of cost function profit function the revenue
generated due to its implication. Then we derived the breakeven point.
Further we emphasized on the markup costs and markup on sale. Moving
forward we had to analyze the marginal profit function using differentiation.
Finally we ended up the derivation of cost function from marginal cost
function and revenue function from marginal revenue function. During this
project we learned a lot after managing this tedious task of business
mathematics.
History:
History of cookware in world
The history of cooking vessels before the development of pottery is minimal
due to the limited archaeological evidence. It has been possible to
extrapolate likely developments based on methods used by latter peoples.
Among the first of the techniques believed to be used by Stone Age
civilizations were improvements to basic roasting. In addition to exposing
food to direct heat from either an open fire or hot embers it is possible to
cover the food with clay or large leaves before roasting to preserve moisture
in the cooked result. Examples of similar techniques are still in use in many
modern cuisines.
Of greater difficulty was finding a method to boil water. For people without access
to natural heated water sources, such as hot springs, heated stones could be placed
in a water-filled vessel to raise its temperature (for example, a leaf-lined pit or the
stomach from animals killed by hunters.[2]). In many locations the shells of turtles
SONEX COOKWARE
or large mollusks provided a source for waterproof cooking vessels. Bamboo tubes
sealed at the end with clay provided a usable container in Asia, while the
inhabitants of the Tehuacan Valley began carving large stone bowls that were
permanently set into a hearth as early as 7000 BC.
According to Frank Hamilton Cushing, native American cooking baskets used by the
Zuni (Zuni) developed from mesh casings woven to stabilize gourd water vessels.
He reported witnessing cooking basket use by Havasupai in 1881. Roasting baskets
covered with clay would be filled with wood coals and the product to be roasted.
When the thus hardened clay separated from the basket, it would become a usable
clay roasting pan in itself. This indicates a steady progression from use of woven
gourd casings to waterproof cooking baskets to pottery. Other than in many other
cultures, native Americans used and still use the heat source inside the cookware.
Cooking baskets are filled with hot stones and roasting pans with wood coals.
Native Americans, both in the East and in the West, would form a basket from large
leaves to boil water, according to historian and novelist Louis L'Amour. As long as
the flames did not reach above the level of water in the basket, the leaves would
not burn through.
The development of pottery allowed for the creation of fireproof cooking vessels in
a variety of shapes and sizes. Coating the earthenware with some type of plant
gum, and later ceramic glazes, converted the porous container into a waterproof
vessel. The earthenware cookware could then be suspended over a fire through use
of a tripod or other apparatus, or even be placed directly into a low fire or coal bed
as in the case of the pipkin. Ceramics (including stoneware and glass) conduct
poorly, however, so ceramic pots must cook over relatively low heats and over long
periods of time (most modern ceramic pots will crack if used on the stovetop, and
are only intended for the oven). Even after metal pots have come into widespread
use, earthenware pots are still preferred among the less well-off, globally, due to
their low production cost.[citation needed]
The development of bronze and iron metalworking skills allowed for cookware made
from metal to be manufactured, although adoption of the new cookware was slow
due to the much higher cost. After the development of metal cookware there was
little new development in cookware, with the standard Medieval kitchen utilizing a
cauldron and a shallow earthenware pan for most cooking tasks, with a spit
employed for roasting.
By the 17th century, it was common for a Western kitchen to contain a number of
skillets, baking pans, a kettle and several pots, along with a variety of pot hooks
and trivets. In the American colonies, these items would commonly be produced by
a local blacksmith from iron while brass or copper vessels were common in Europe
SONEX COOKWARE
and Asia. Improvements in metallurgy during the 19th and 20th centuries allowed
for pots and pans from metals such as steel, stainless steel and aluminium to be
economically produced.
Cookware materials
Metal
Metal pots are made from a narrow range of metals because pots and pans need to
conduct heat well, but also need to be chemically unreactive so that they do not
alter the flavor of the food. Most materials that are conductive enough to heat
evenly are too reactive to use in food preparation. In some cases (copper pots, for
example), a pot may be made out of a more reactive metal, and then tinned or clad
with another.
Aluminum
Aluminium is a lightweight metal with very good thermal conductivity. It does not
rust, and is resistant to many forms of corrosion. Aluminium can, however, react
with some acidic foods to change the taste of the food. Sauces containing egg yolks
or vegetables such as asparagus or artichokes may cause oxidation of non-anodized
aluminium. Since 1965, circumstantial evidence has linked Alzheimer's disease to
aluminium, but to date there is no proof that the element is involved in causing the
disease.
Aluminium is commonly available in sheet, cast, or anodized forms. Sheet
aluminium is spun or stamped into form. Due to the softness of the metal it is
commonly alloyed with magnesium, copper, or bronze to increase its strength.
Sheet aluminium is commonly used for baking sheets, pie plate, and cake or muffin
pans. Stockpots, steamers, pasta pots, and even skillets are also available from
sheet aluminium.[6]
Circulon-anodized-aluminium
Anodized aluminiumCast aluminum produces a thicker product than sheet
aluminium, making it suitable for saucepots, Dutch ovens, and heavyweight baking
pans such as bundt pans. Due to the microscopic pores caused by the casting
process cast aluminium has a lower thermal conductivity than sheet aluminum.
SONEX COOKWARE
10
Anodized aluminium has had the naturally occurring layer of aluminium oxide
thickened by an electrolytic process to create a surface that is hard and nonreactive. It is used for saut pans, stockpots, roasters, and Dutch ovens.[6]
Copper
Classically in Western cooking, the best pots were made out of a thick layer of
copper for good thermal conductivity and a thin layer of tin to prevent the copper
from reacting with acidic foods. Copper pans provide the best conductivity, and
therefore the most even heating. They tend, however, to be heavy, expensive, and
to require occasional retinning. Thin guage copper saucepans are now available
with stainless steel rather than tin linings which last much longer. They are best for
such high-heat, fast-cooking techniques as sauteing. Restaurants still use tinned
copper that is thicker, heavier conducts heat faster but, of course, more expensive.
Cast Iron
Cast iron cookware
Cast iron cookware is slow to heat, but once at temperature provides even heating.
Cast iron can also withstand very high temperatures, making cast iron pans ideal
for searing. Being a reactive material, cast iron can have chemical reactions with
high acid foods such as wine or tomatoes. In addition, some foods (such as spinach)
cooked on bare cast iron will turn black.
Cast iron is a porous material that rusts easily. As a result, it typically requires
seasoning before use. Seasoning creates a thin layer of fat and carbon over the iron
that coats and protects the surface, and prevents sticking.
Stainless Steel
Stainless steel is an iron alloy containing a minimum of 11.5% chromium. Blends
containing 18% chromium with either 8% nickel,called 18/8, or with 10% nickel,
called 18/10, are commonly used for kitchen equipment. Stainless steel's virtues
are a resistance to corrosion, it does not react with either alkaline or acidic foods,
and it is not easily scratched or dented. Stainless steel's drawback for cooking use
is that it is a relatively poor heat conductor. As a result, stainless steel cookware is
generally made with a disk of copper or aluminium in or on the base to conduct the
heat across the base.
Carbon Steel
SONEX COOKWARE
11
Carbon steel cookware can be rolled or hammered into very thin sheets of material,
while still maintaining high strength and heat resistance. This allows for rapid and
high heating. Carbon steel does not conduct heat as well as other materials, but
this may be an advantage for woks and paella pans, where one portion of the pan is
intentionally kept at a different temperature than the rest. Like cast iron, carbon
steel must be seasoned before use. Rub a fat (lard is recommended) on the cooking
surface only and heat the cookware over the stovetop. The process can be repeated
if needed. Over time the cooking surface will become dark and nonstick. Carbon
steel is often used for woks and crepe pans.
Coated and composite cookware

Enameled cast iron
Enameled cast iron cooking vessels are made of cast iron covered with a porcelain
surface. This creates a piece that has the heat distribution and retention properties
of cast iron combined with a non-reactive, low-stick surface.
Enamel over steel

The enamel over steel technique creates a piece that has the heat distribution of
carbon steel and a non-reactive, low-stick surface. Such pots are much lighter than
most other pots of similar size, are cheaper to make than stainless steel pots, and
do not have the rust and reactivity issues of cast iron or carbon steel. Enamel over
steel is ideal for large stockpots, and for other large pans that will be used mostly
for water-based cooking. Because of its light weight and easy cleanup, enamel over
steel is also popular for cookware used while camping.
Clad aluminum or copper

Cladding is a technique for fabricating pans with a layer of heat conducting
material, such as copper or aluminum, covered by a non-reactive material, such as
stainless steel. Rather than just a heat-distributing disk on the base, the copper or
aluminum extends over the entire pan.
Aluminum pans are typically clad on both their inside and the outside surfaces,
providing both a stainless cooking surface and a stainless surface to contact the
cook top. Copper is typically clad on its interior surface only, leaving the more
attractive copper exposed on the outside of the pan.
SONEX COOKWARE
12
Some high-end cookware uses a dual-clad process, with a thin stainless layer on the
cooking surface, a thick core of aluminum to provide structure and heat diffusion,
and a thin layer of copper on the outside of the pot that provides additional
diffusion and the "look" of a copper pot. This provides much of the functionality of
tinned-copper pots for a fraction of the price.[11]
Non-stick
Teflon coated frying PAN
Steel or aluminum cooking pans can be coated with a substance such as
polytetrafluoroethylene (PTFE) in order to minimize food sticking to the pan surface.
There are advantages and disadvantages to such a coating. Coated pans are easier
to clean than most non-coated pans, and require little or no additional oil or fat to
prevent sticking.
On the other hand, some sticking is needed to cause sucs to form, so a non-stick
pan cannot be used where e.g. a pan sauce is desired. And non-stick pans must not
be overheated (see below). Nonstick coatings tend to degrade over time. In order to
preserve the coating, it is important never to use metal implements or harsh
scouring pads or chemical abrasives when cleaning.
The main difference in quality levels of the coatings is in the formulas of the liquid
coating, the thickness of each layer and the number of layers of used.[citation
needed] Higher quality nonsticks use powdered ceramic or titanium mixed in with
the nonstick to strengthen them and to make them more resistant to abrasion and
deterioration.[citation needed] Some nonstick coatings containing hardening
agents. Some coatings are high enough in quality that they pass the strict
standards of the National Sanitation Foundation for approval for restaurant use.
[citation needed]
There has been controversy [citation needed] surrounding the use of non-stick
coatings: while decomposition does not occur at normal cooking temperatures
(below about 465F/240C),[12] overheating can produce decomposition products
that are toxic to humans[13] and fatal to birds.[14] Unfortunately, overheating is
relatively easy.[15] Fortunately, there are alternatives.[16]
Non-metallic cookware
SONEX COOKWARE
13
Non-metallic cookware can be used in both conventional and microwave ovens.

Non-metallic cookware typically can't be used on the stovetop, but some kinds of
ceramic cookware, for example Corningware, are an exception.
Ceramics
Glazed ceramics, such as porcelain, provide a nonstick cooking surface. Some
unglazed ceramics, such as terra cotta, have a porous surface that can hold water
or other liquids during the cooking process, adding moisture in the form of steam to
the food. Historically some glazes used on ceramic articles have contained high
levels of lead, which can possess health risks.
Glass
Borosilicate glass, such as Pyrex, is safe at oven temperatures. The clear glass also
allows for the food to be seen during the cooking process.
Glass-ceramic
Glass ceramic is used to make products such as Corningware, which have many of
the best properties of both glass and ceramic cookware. While Pyrex can shatter if
taken between extremes of temperature too rapidly, glass-ceramics can be taken
directly from deep freeze to the stove top. Their near-zero coefficient of thermal
expansion makes them almost entirely immune to thermal shock.
Silicone
Silicone bakeware is light, flexible, and able to withstand sustained temperatures of
675F (360C)[17]. It melts around 930F (500C), depending upon the fillers used.
Its flexibility is advantageous in removing baked goods from the pan. This rubbery
material is not to be confused with the silicone resin used to make hard,
shatterproof children's dishware, which is not suitable for baking.
History of cookware in Pakistan

MAJESTIC, the well-known name for kitchen-wares was organized in 1931
sales were re-invested to increase the capital purchases and modernization
of mechanical aspects.
SONEX COOKWARE
14
The company; initially being a family venture, grew into a joint organization
and it could own a sophisticated set of machines for large scale production in
1984. , MAJESTIC introduced non-stick products in Pakistan. We also realize
that the living style are (today) fast moving towards sophistication:
therefore, MAJESTIC has decided to meet these standards by the control of
machines, outlay of products, utility of merchandise and competitive price
structures suitable for everybody's pocket. Majestic Chef congratulates and
thanks its customers for their ever-lasting trust in its products. This trust is
based on more than 50 years of matchless service. Your continued support
for years has been a stimulus for us to grow prominently in the industry and
to emerge as specialist in cookware manufacturing.
The Quality of materials, the standard of manufacturing and competitive
prices all distinguish products of C.C. Factories from its competitors. Noncompromised quality and elegant designs have not only made our products
dominant in the local market popular but also highly popular across the
world. Each product by us is manufactured to ensure supreme quality and
durability.
At Majestic Chef you can find anything you are looking for your kitchen. We
aim at complete satisfaction of our customers and are always their lasting
partner.
History of Sonex Cookware

SONEX COOKWARE
15
History
Starting from small industrial units in the 1960's, Sonex International (Pvt.)
Ltd is now a leading manufacturer and exporter of kitchen ware. We
manufacture our products under the brand name of "SONEX" and have been
producing our goods for the last 40 years. After an overwhelming demand in
the domestic market, Sonex International began to export as well. It has
been one of the biggest exporters in Pakistan for over 20 years.
At Sonex International, we pride ourselves on top of the line machinery and
technical expertise, which allow us to provide superior quality goods to our
customers. Our products are manufactured according to the International
standards and we are proudly an ISO Certified Company.
For the last 40 years, Sonex International has attained various
achievements. We have produced Kitchen Ware in simple Aluminum, Milky
Dull Aluminum, Mirror Finish Aluminum, Metal Finish Aluminum & Stainless
Steel, Sandwich Bottom products with glass lid and all other best quality
products. We are exporting in major international markets of U.S.A, U.K,
other European Countries and the Middle East.
Due to the continued effort and hard work of our team and CEO Mr. Ikhlaq
Ahmed Butt, our progress graph is ever improving as we strive hard to
continue providing our customers with the best quality products to suit their
culinary needs.
Moto
We are a quality conscious company
Introduction
Enjoying a strong base of 50 years in the trade and manufacturing of
utensils, the kitchenware industry may not be new for Pakistan. However,
the products and the variety offered by Sonex International are unique.
Quality is the top priority at Sonex International and our experienced and
dedicated management is working enthusiastically to provide the finest
quality goods to our customers in Pakistan and around the globe. We further
ensure that state-of-the-art machinery is used to manufacture our ISO
certified cookware.
SONEX COOKWARE
16
Our key success factor is due to the fact that we meet international
standards in providing all kinds aluminum ware. This is also why we are the
best manufacturers of Kitchen Ware all over the country and one of the
leading exporters as well.
Export
Apart from supplying the domestic market, Sonex International has been a
successful exporter of cookware for over 20 years. We are exporting our
products to almost all over the world and we are one of the leading
exporters of Pakistan in kitchen ware items. The major exporting countries
are like U.S.A, U.K, Canada, Australia, Holland, Belgium, Singapore, South
Africa and Middle East.
Product List
Sonex International (Pvt.)
Ltd.
SONEX COOKWARE
17
NON - STICK
Dated : 14-04-2010
SONEX COOKWARE
18
SONEX COOKWARE
19
Code
Product Name
NS30
CLASSIC GIFT PACK No. 2
NS16
STYLISH PLUS GIFT PACK
NS17
STYLISH GIFT PACK
NS18
SUPER GIFT PACK
NS06
SUPER FRYINGPAN 20 cm
NS06
NS06
NS06
NS06
NS06
NS05
CLASSIC FRYINGPAN NO. 1
NS05
NS05
NS05
NS23
NS23
NS23
NS23
KARAHI
KARAHI
KARAHI
KARAHI
NS13
SUPER VOK NO. 1
NS13
SUPER VOK NO. 2
NS19
SUPER MILK PAN 17 cm
NS19
SUPER MILK PAN 19 cm
NS11
CLASSIC TAWA (30.5 cm)
NS20
ROYAL TAWA (30.5 cm)
NS10
HOT PLATE (29.0 cm)
NS21
JUNIOR TAWA (25.3 cm)
NS33
ELEGANT TAWA (34.5 cm)
NS14
CLASSIC GIFT PACK
NS02
CLASSIC SET
NS08
CLASSIC KING
NS08
CLASSIC KING HANDI 24 CM
NS08
CLASSIC KING HANDI 27 CM
NO.
NO.
NO.
NO.
0
1
2
3
SONEX COOKWARE
WITH
WITH
WITH
WITH
LID
LID
LID
LID
20
Selected Products:
COOKING VOK 27 CM
CLASSIC TAWA30.5 CM
STYLISH
FRY PAN21 CM
Features:
Most of the majorities of pans sold the world over today have a non-stick
interior. Due to vast improvements in technology over the years, non-stick
pans are even more durable than they were initially That is why people all
over the world are choosing non-stick pans for their cooking needs. As the
SONEX COOKWARE
21
primary factor in determining cooking performance is the thickness of the

pan we concentrate on providing the best quality non-stick cookware
Use & Care:

Always use low or medium heat while using a non-stick pan to cook. High or
excessive heat will cause pan warping and permanent nonstick coating
damage.
Non-Stick Production process
SONEX COOKWARE
22
Market Share
Sonex have round about 50% market share in the local market. Sonex have
many competitors in cookware industry but there production and quality is
SONEX COOKWARE
23
very low as compared to Sonex. Sonex is getting this high market share
because
of
its
product
quality
and
availability.
Competitors
Sonex cookware industry has many competitors in the local market. Which
are as following;
1) Chinese cookware
China is the main competitor in local market. They have 15%
market share of local market because of its low prices.
2) Fine non-stick
Fine non-stick is also a main competitor of Sonex in non-stick.
They also have a good market share in local market round about
10% but they are not as popular because of low quality.
3) National non-stick
National Non-stick is the third main competitor of Sonex in nonstick. They have the lowest market share 10% because of their
low production and low quality.
4) Tefal cookware industry
Tefal is the number one non-stick industry in the world but their
market share is very low 2% in Pakistan local market because of
their very high prices.
5) Others
Rest of the market share is 13% which is covered by the other
companies. These may be international or local.
COOKING VOK (27CM):

EXPORT
SONEX COOKWARE
24
SONEX COOKWARE is exporting cookware products from no of years. Export s

includes every type of cookware. SONEX COOKWARE is exporting to different
countries such as Europe and UAE. COOKING VOK is one of its non-stick products
and their last four year exports are.
COOKING VOK 27 CM (Year 2010)

January 2010 to May
2010
2600 Pcs.

January 2009 to June
2009
4580 Pcs.
July 2009 to
December 2009
4658 Pcs.

2008
5400 Pcs.
July 2008 to
December 2008
5870 Pcs.

2007
4250 Pcs.
July 2007 to
December 2007
4750 Pcs.
PRODUCTION:
SONEX COOKWARE is producing different kind of COOKWARE products. These
products are including Non-Stick, Metal Finished, Hard Anodized and Stain-less
steel. As we are only concern with Non-Stick and its monthly production is
SONEX COOKWARE
25
60000pieces. COOKING VOK is 975kg. Detail of which is given in the table. Weight
of single VOK is 0.650kg and average monthly production is 1500 pcs. So as a
result, its total monthly production is (1500 pcs*0.650kg = 975kg).Daily basis
production of COOKING VOK is 39kg. Daily basis product of VOK is 60 pcs so (60
pcs*0.650kg=39kg)
MONTHLY PRODUCTION
Cooking Vok
Total Non-Stick Production
Cooking Vok
Weight of each Vok
Cooking Vok
DAILY PRODUCTION
Monthly Production
Monthly Working Date
Average Daily Total Non-stick Production
Average Daily Cooking Vok Production
27CM
60000pieces
1500pieces
0.650kg
975kg
1500pieces
25days
2400pieces
60pieces
SHARE OF TOTAL PRODUCTION:

SHARE OF COOKING VOK IN NON-STICK
Cooking Vok
Percentage of Cooking Vok
60000 pieces
1500 pieces
2.5%
INTERPRETATION:
As we know that total production of NON-STICK department is 60000 pieces and
COOKING VOK production is 1500 pieces on monthly basis. Its monthly percentage
in total production is (1500/60000=2.5%). Same is the case for daily basis because
daily production of NON-STICK is 2400 pieces and COOKING VOK is 60 pieces so its
daily base percentage is (60/2400=2.5%). So it is clear that COOKING VOK is 2.5 %
of the total NON-STICK production.
Raw Materials:
Raw materials are the main source in finding the cost of the
COOKING VOK.
SONEX COOKWARE
26
Table for Raw Material

Serial
no
Name of items
Aluminum
Cost of colour
Side handle(2 each

Vok)
Knob
Glass Lid
Ribet (4 each Vok)
Screw (4 each Vok)
Polly Bag
10
Plastic Spoon
Box
Un
it
Quantit
y
Unit
Price
Amount
(Rs)
kg
0.65
185
120.25
kg
0.03
2500
75
pc
s
15
30
pc
s
30
30
pc
s
100
100
pc
s
pc
s
kg
0.048
211
10
pc
s
15
15
pc
s
40
40
TOTAL
Rs 428.25
Machinery:
Table for Machinery
Seri
al
NO
1
Type of
Machinery
Furnace
SONEX COOKWARE
Price
(Rs)
40000
Depreciation
Annually
20000
27
Depreciation
Monthly
1666.6
Dye
Hot rolling
4
5
Hold rolling
Cutting
Annealing
7
8
9
Draw
Surface cutting
Surface polishing
10
11
12
13
14
15
16
Sand blasting
Inside premier
coating
Baking(100c)
Inside top
coating
Baking(427c)
Outside premier
coating
17
Baking(100c)
Outside top
coating
18
Baking(310c)
19
Bottom tooling
20
Handle fixing
21
Delivery truck
TOTAL
0
50000
0
45000
00
45000
00
65000
12000
00
90000
0
60000
60000
18000
00
60000
0
35000
00
60000
0
35000
00
60000
0
60000
0
60000
0
60000
0
60000
0
25000
0
15000
00
26935
000
25000
2083.3
225000
18750
225000
18750
3250
60000
270.83
5000
45000
3750
3000
3000
90000
250
250
7500
30000
2500
175000
14583.3
30000
2500
175000
14583.3
30000
2500
30000
2500
30000
2500
30000
2500
30000
2500
12500
1041.6
75000
6250
1346750
112229.1
MACHINE COST AS FIXED COST:

MACHINE COST IS DETERMINED AS FIXED COST
5% is the Depreciation cost that would be charged. The Depreciation
method is straight Depreciation method. And is calculated on annual basis
SONEX COOKWARE
28
Total Annual Depreciation Cost of Company machines are (26935000*5%

=>Rs.1346750).
Total Depreciation per month (1346750 l 12 =>Rs. 112229.1) OR
(26935000*0.41=>Rs.112229.1)
Total Monthly production of the COOKING VOK = 975kg or 1500 pcs

COOKING VOK Share in the total production = 2.5%
Total cost of machines for the 1500 COOKING VOK = (2.5%*112229.1
=>Rs. 1823.7)
Labor:
Serial
no
1
2
Table for Departments

No of
Departments
Person
Management Department
15
Production Department
185
Salaries or Wages
per Month(Rs)
250,000
1,400,000
Fixed Cost:
Fixed Cost Elements in labor
Total Fixed Cost of the Labors = Rs.250, 000
Total production capacity of the company = 1500 pieces per monthly
Total share of the COOKING VOK in fixed labor cost =2.5%* 250,000
=> Rs.4062.5 per month
Variable Cost:
Variable cost as production department labor = Rs. 1,400,000
SONEX COOKWARE
29
Share
of
the
COOKING
VOK
in
the
total
production
0.650/60000=0.0010833%
Charges to the production department of COOKING VOK =0.0010833
% of 1, 400,000 => Rs.15.17 per unit
.
Expenditures of the Production Department:
Serial no
1
2
3
Table for Other Expenditures for Production

Expenditures(
Type of Expenditures
Rs)
Expenditures per Unit(Rs)
Gas Bill
600000
6.5
Electricity Bill
500000
5.416
Generator
100000
1.083
TOTAL
1200000
12.999
Variable Cost:
Total Electricity expenses per month= Rs. 500,000
Total
Electricity
expenses
per
unit
COOKING
VOK=
0.650/60000=0.0010833%*500,000=> Rs.5.416
Total Gas expenses per month= Rs.600, 000
Total
Gas
expenses
per
unit
COOKING
0.650/60000=0.0010833%*500,000=> Rs.6.5
Total Generator expenses per month= Rs. 100,000
SONEX COOKWARE
30
VOK=
Total Generator expenses per unit COOKING VOK=

0.650/60000=0.0010833%*100,000=> Rs.1.083
Expenditures of the Fix Over Head:

Table for Other Expenditures for Management Department
Serial
% Expenditures per
no
Expenditures
month
1
Telephone Bills
18000
292.5
Watchmen Salaries
70000
1137.5
Driver Salaries
30000
487.5
Computer Expenses
22500
365.6
Display Expenses
20833.3
338.5
Electricity Bill
Factory
Overheads(kitchen)
100000
1625
50000
810
311333.3
5056.6
TOTAL
Fixed Cost:
Total Fixed Cost of the telephone = Rs.18, 000
Total share of the COOKING VOK in telephone bill =2.5%* 18,000 =>
Rs.292.5 per month
Total Fixed Cost of the watchman salaries = Rs.70, 000
Total production capacity of the company for COOKING VOK =1500
pieces per monthly
SONEX COOKWARE
31
Total share of the COOKING VOK in watchman salaries =2.5%*

70,000 => Rs.1137.5 per month
Total Fixed Cost of the Electricity bill = Rs.100, 000
Total production capacity of the company = 1500 pieces monthly
Total share of the COOKING VOK in Electricity bill =2.5%* 100,000
Total Fixed Cost of the computer expenses= Rs.25, 500
Total share of the COOKING VOK in computer expenses = 2.5%*25,
500 => Rs.365.6 per month
Total Fixed Cost of the display expenses= Rs.20, 833
Total share of the COOKING VOK in display expenses =2.5%*20, 833
Total Fixed Cost of the Driver salaries = Rs.30, 000
Total share of the COOKING VOK in Driver salaries =2.5%*30, 000
=> Rs.1625 per month
Total Fixed Cost of the kitchen expenses = Rs.50, 000
Total share of the COOKING VOK in kitchen expenses =2.5%*50, 000
=> Rs.810 per month
Total Cost = Total Fixed Cost + Total Variable Cost

SONEX COOKWARE
32
Total Fixed Cost:

Total share of the COOKING VOK in fixed labor cost =2.5%* 250,000
Total share of the COOKING VOK in telephone bill =2.5%* 18,000 =>
Rs.292.5 per month
Total share of the COOKING VOK in electricity bill =2.5%* 100,000
Total share of the COOKING VOK in watchman =2.5%* 70,000 =>
Rs.1137.5 per month
Total share of the COOKING VOK in computer =2.5%*25, 500 =>
Rs.365.6 per month
Total share of the COOKING VOK in display expenses =2.5%*20, 833
Total share of the COOKING VOK in drivers salaries =2.5%*30, 000
Total share of the COOKING VOK in kitchen expenses =2.5%*50, 000
=> Rs.810 per month
Total Variable Cost:
Cost of Raw material for producing one complete set of the
COOKING VOK is Rs.428.25
Charges to the production department of COOKING VOK =0.0010833
% of 1, 400,000 => Rs.15.17 per unit
Total
Electricity
expenses
per
unit
COOKING
VOK=
0.650/60000=0.0010833%*500,000=> Rs.5.416
Total
Gas
expenses
per
unit
COOKING
0.650/60000=0.0010833%*500,000=> Rs.6.5
Total Generator expenses per unit COOKING VOK=
0.650/60000=0.0010833%*100,000=> Rs.1.083
SONEX COOKWARE
33
VOK=
Cost Function:
Total cost = Fixed Cost + variable cost
C(x) = 10945.39 + 460X
INTERPRETATION:
From the above calculations it is clear that the Rs.10945.39 (fixed cost) are
to be charged for every fan whether there is production or not. The Rs.460
(variable cost) depends on the number of units produced. It is for the
production of one unit. As number of units produced varies the variable cost
also varies. Variable cost is basically the fixed per unit cost.
Revenue Function:
Revenue = price x quantity
R(x) = 670x
INTERPRTATION:
From the above equation it is clear that price of Cooking Vok is Rs 670. As
we know that revenue is the function of price and quantity so revenue for
Cooking Vok is calculated by multiplying the price of Cooking Vok with
quantity sold.
Profit Function:
SONEX COOKWARE
34
Profit = Revenue Cost

= 670x (10945.39 + 460X)
= 760x 10945.39 + 460X
= 210X - 10945.39
INTERPRTATION:
From the above equation it is clear that profit is the function of revenue and
cost. Profit means reward over production of something so we can calculate
it by subtracting the cost function from revenue function. Now we get profit
function. By putting the value of x thats in kgs for Cooking Vok. We get the
profit for Cooking Vok.
Break Even Analysis:

Revenue = cost
670 X = 10945.39 + 460X
X = 52 units
INTERPRTATION:
As we know that break-even means cost equal to revenue. Its means
producing the goods at the level just to cover the cost. From the above
equation it is clear that over break-even is 52 pieces. It means when
production of Cooking Vok is equals to 52 units cost of covered. Production of
each additional unit making the revenue for Sonex Cookwear.
SONEX COOKWARE
35
Quantity Demanded
COOKING VOK
Year
Price
Demand
Jan
650
1000
Feb
650
1050
Mar
650
1070
Apr
650
1100
May
650
1120
Jun
650
1150
July
660
1200
Aug
660
1250
Sep
660
1290
Oct
660
1300
Nov
660
1320
SONEX COOKWARE
36
Dec
660
1350
Jan
670
1390
Feb
670
1400
Mar
670
1450
Apr
670
1500
May
670
1550
Jun
670
1600
2009
INTERPRETATION:
We have data of one and half year of Cooking Vok so split this data into
three periods each for six months as its required for determined the
quadratic function. We required three values so take average of every six
months. After taking average we have a three points that are:
(650, 1082) (660, 1285) (670, 1481)
Quadratic Demand function:

Now we put these values in quadratic equation to get Quadratic Demand
Function for Cooking Vok.
(650, 1082) (660, 1285) (670, 1481)
General Formula for Quadratic Demand Function
Q d = ap2+ bp + c
1082=a (650)2 + b (650) +c
1082=422500a + 650b + c------------ (1)
1082=a (660)2 + b (660) +c
1285=435600a + 660b +c------------ (2)
1082=a (670)2 + b (670) +c
SONEX COOKWARE
37
1481=448900a + 670b +c------------- (3)

Solving (1) (2) and (3) simultaneously we get
Q
= - 0.035 p2 + 66.15 p - 27128
INTERPRETATION:
This is Quadratic Demand Function for Cooking Vok. Now this equation we
get the value for demand of Cooking Vok from any price of Cooking Vok.
Quantity Supply
COOKING VOK
Year
Price
Supply
Jan
650
900
Feb
650
910
Mar
650
930
Apr
650
970
May
650
1000
Jun
650
1020
July
660
1100
Aug
660
1150
Sep
660
1150
Oct
660
1200
Nov
660
1250
Dec
660
1250
Jan
670
1300
Feb
670
1350
2009
SONEX COOKWARE
38
Mar
670
1400
Apr
670
1470
May
670
1500
Jun
670
1550
INTERPRETATION:
We have data of one and half year of Cooking Vok so split this data into
(650,955) (660, 1183) (670, 1428)
Quadratic Supply function:

Now we put these values in quadratic equation to get Quadratic Supply
Function for Cooking Vok
(650,955) (660, 1183) (670, 1428)
General Formula for Quadratic Supply Function
Q s = ap2 + bp + c
955=a (650)2 + b (650) +c
955=422500a + 650b + c------------ (1)
1183=a (660)2 + b (660) +c
1183=435600a + 660b +c------------ (2)
1428=a (670)2 + b (670) +c
1428=448900a + 670b +c------------- (3)
Solving (1) (2) and (3) simultaneously, we get
SONEX COOKWARE
39
Q s = 0.085 p2 - 88.55 p - 22600
INTERPRETATION:
This is Quadratic Supply Function for Cooking Vok. Now this equation we get
the value for supply of Cooking Vok from any price of Cooking Vok.
Cash Discount:
Table for Cash Discount
Date
1/1/2010
3/1/2010
4/1/2010
9/1/2010
13/1/2010
17/1/2010
21/1/2010
23/1/2010
28/1/2010
Product
Cooking
Cooking
Cooking
Cooking
Cooking
Cooking
Cooking
Cooking
Cooking
Vok
Vok
Vok
Vok
Vok
Vok
Vok
Vok
Vok
Q
T.
1
1
1
2
2
3
1
1
1
2/2/2010
5/2/2010
8/2/2010
9/2/2010
11/2/2010
14/2/2010
17/2/2010
20/2/2010
22/2/2010
24/2/2010
27/2/2010
Cooking
Cooking
Cooking
Cooking
Cooking
Cooking
Cooking
Cooking
Cooking
Cooking
Cooking
Vok
Vok
Vok
Vok
Vok
Vok
Vok
Vok
Vok
Vok
Vok
3
3
2
1
1
1
1
3
2
2
2
1950
1950
1300
650
650
650
650
1950
1300
1300
1300
4%
5%
4%
9%
6%
4%
5%
9%
5%
5%
5%
3/3/2010
4/3/2010
6/3/2010
8/3/2010
Cooking
Cooking
Cooking
Cooking
Vok
Vok
Vok
Vok
2
1
1
1
1300
650
650
650
6%
8%
7%
5%
SONEX COOKWARE
Gross
Price
650
650
650
1300
1300
1950
650
650
650
Discount
4%
5%
6%
4%
3%
2%
7%
8%
9%
40
Discount
Price
Net
payment
26
32.5
39
52
39
39
45.5
52
58.5
0
78
97.5
52
58.5
39
26
32.5
175.5
65
65
65
0
78
52
45.5
32.5
624
617.5
611
1248
1261
1911
604.5
598
591.5
0
1872
1852.5
1248
591.5
611
624
617.5
1774.5
1235
1235
1235
0
1222
598
604.5
617.5
10%
8%
6%
4%
7%
6%
5%
9%
6%
10%
4%
5%
117
32.5
104
32.5
195
65
91
0
32.5
45.5
32.5
104
175.5
26
78
136.5
32.5
136.5
32.5
39
0
195
104
78
26
45.5
39
32.5
117
78
195
26
32.5
1183
617.5
1196
617.5
1755
1235
1209
0
617.5
604.5
617.5
1196
1774.5
624
1222
1813.5
617.5
1813.5
617.5
611
0
1755
1196
1222
624
604.5
611
617.5
1183
1222
1755
624
617.5
338%
3822
55978
11/3/2010
16/3/2010
17/3/2010
20/3/2010
24/3/2010
26/3/2010
29/3/2010
Cooking
Cooking
Cooking
Cooking
Cooking
Cooking
Cooking
Vok
Vok
Vok
Vok
Vok
Vok
Vok
2
1
2
1
3
2
2
1300
650
1300
650
1950
1300
1300
9%
5%
8%
5%
10%
5%
7%
1/4/2010
3/4/2010
6/4/2010
9/4/2010
13/4/2010
16/4/2010
18/4/2010
22/4/2010
25/4/2010
26/4/2010
29/4/2010
30/4/2010
Cooking
Cooking
Cooking
Cooking
Cooking
Cooking
Cooking
Cooking
Cooking
Cooking
Cooking
Cooking
Vok
Vok
Vok
Vok
Vok
Vok
Vok
Vok
Vok
Vok
Vok
Vok
1
1
1
2
3
1
2
3
1
3
1
1
650
650
650
1300
1950
650
1300
1950
650
1950
650
650
5%
7%
5%
8%
9%
4%
6%
7%
5%
7%
5%
6%
1/5/2010
4/5/2010
6/5/2010
9/5/2010
12/5/2010
15/5/2010
17/5/2010
20/5/2010
23/5/2010
25/5/2010
28/5/2010
30/5/2010
Cooking
Cooking
Cooking
Cooking
Cooking
Cooking
Cooking
Cooking
Cooking
Cooking
Cooking
Cooking
Vok
Vok
Vok
Vok
Vok
Vok
Vok
Vok
Vok
Vok
Vok
Vok
3
2
2
1
1
1
1
2
2
3
1
1
1950
1300
1300
650
650
650
650
1300
1300
1950
650
650
9
2
59800
TOTAL
INTERPRETATION:
As you know that we have selected SONEX COOKWARE. Our company sells
the goods to wholesaler and retailer for one month credit basis. There is no
proper cash discount system. It is a price reduction to buyers who pay their
SONEX COOKWARE
41
bills promptly. A typical example is 2 /10 net 30. Which means payment is
due within 30 days and buyer can deduct 2 % by paying the bill within 10
days but Unilever is not offering such discount. They are just giving discount
on cash basis to reference customers.
Inventory:
Date
1/5/2010
2/5/2010
3/5/2010
4/5/2010
5/5/2010
6/5/2010
7/5/2010
8/5/2010
9/5/2010
10/5/2010
11/5/2010
12/5/2010
13/5/2010
14/5/2010
15/5/2010
16/5/2010
17/5/2010
18/5/2010
19/5/2010
20/5/2010
21/5/2010
22/5/2010
23/5/2010
24/5/2010
25/5/2010
26/5/2010
27/5/2010
28/5/2010
29/5/2010
30/5/2010
Pieces
SONEX COOKWARE
24
48
48
72
72
72
48
48
48
72
96
96
96
96
24
48
48
72
72
72
48
96
24
24
48
72
72
72
72
96
1896
Table for Inventory

Price
670
670
670
670
670
670
670
670
670
670
665
665
665
665
665
665
675
675
675
675
675
675
675
675
670
670
670
670
670
670
42
value of inventory
16080
32160
32160
48240
48240
48240
32160
32160
32160
48240
63840
63840
63840
63840
15960
31920
32400
48600
48600
48600
32400
64800
16200
16200
32160
48240
48240
48240
48240
64320
1270320
Methods of Calculating the Value of Inventory:

1)
Weighted Average Method:
Average price = Total value of stock / Total no of units

= 1270320/1896
=Rs. 670
Inventory of this month = 100 units
Value of Inventory = 100 * 670
= Rs.67000
2)
First In First Out Method: (FIFO)

Table for FIFO Method
Date
29/5/201
0
30/5/201
0
3)
Units
Price(Rs)
Value of
Inventory(Rs)
670
2680
96
100
670
64320
67000
Last In First Out: (LIFO)

Table for LIFO Method
Date
1/5/2010
2/5/2010
3/5/2010
SONEX COOKWARE
Units
24
48
28
100
Price(Rs)
670
670
670
43
Value of
Inventory(Rs)
16080
32160
18760
67000
COST FOR SINGLE PRODUCT:

C(x) = 10945.39 + 640 x
C (975) = 10945.39 + 640 (975)
C =Rs. 471.22
MARKUP ON COST FOR COOKING VOK:

MAKRUP ON COST =
=
= 21.33 %
INTERPRETATION:
From the above the equation it is that cost of Cooking Vok is Rs 471. We have taken
Rs 100 over cost. So as of it have 21.33% over cost of Cooking Vok.
MARKUP ON SALE FOR COOKING VOK:
MAKRUP ON SALE =
=
= 14.92 %
INTERPRETATION:
SONEX COOKWARE
44
From the above the equation it is that sale of Cooking Vok is Rs 670. We have taken
Rs 100 over sell as we in case of cost. So as of it have 14.92% over sell of Cooking
Vok.
MARGINAL PROFIT FROM PROFIT FUNCTION:

P(x) =210x + 10945.39
Differentiate With Respect To x
INTERPRETATION:
Here we have applied the derivative over profit function of Cooking Vok. As a result
of it we get marginal profit of Cooking Vok that is 210.
MARGINAL COST FROM COST FUNCTION:

C(x) = 640x + 10945.39
SONEX COOKWARE
45
INTERPRETATION:
Here we have applied the derivative over cost function of Cooking Vok. As a
result of it we get marginal cost of Cooking Vok that is 460.
COST FUNCTION FROM MARGINAL COST:

Marginal Cost = 460
Integration
Cost=460X + C
Here we take two points related to revenue and production that are
(975, 459445.39)
459445.39 = 460 (975) + c
459445.39 448500 = c
10945.39 = c
As we get the value of C is 10945.39 so we get revenue function equals to
Cost = 460x + 10945.39
INTERPRETATION:
Here we have applied the integration over marginal cost of Cooking Vok. As
a result of it we get cost function of Cooking Vok that is 460 x + 10945.39.
SONEX COOKWARE
46
REVENUE FUNCTION FROM MARGINAL REVENUE:

Marginal Revenue = 670
Integration
R=670X + C
(938000, 1400)
938000 = 670 (1400) + C
938000 - 938000 = C
0 =C
As we get the value of C is zero so we get revenue function equals to
Revenue=670 x
INTERPRETATION:
Here we have applied the integration over marginal cost of Cooking Vok. As a result
of it we get cost function of Cooking Vok that is 670 x.
SONEX COOKWARE
47
CLASSIC TAWA (27CM):

EXPORT
countries such as Europe and UAE. COOKING VOK is one of its non-stick products
and their last four year exports are
CLASSIC TAWA (Year 2010)

January 2010 to May 2010
6700
Pcs.
January 2009 to June 2009
8750
Pcs.
July 2009 to December 2009
9180
Pcs.
1050
Pcs.
7400
Pcs.
8450
7890
Pcs.
Pcs.

PRODUCTION:
SONEX COOKWARE
48
SONEX COOKWARE is producing different kind of COOKWARE products. These

steel. As we are only concern with Non-Stick and its monthly production is
60000pieces. Classic Tawa is 8500kg. Detail of which is given in the table. Weight
of single VOK is 0.850kg and average monthly production is 10000 pcs. So as a
result, its total monthly production is (10000 pcs*0.850kg = 8500kg).Daily basis
production of Classic Tawa is 340kg. Daily basis product of VOK is 400 pcs so (400
pcs*0.650kg=340kg)
MONTHLY PRODUCTION
30.5CM
60000pieces
10000pieces
0.850kg
8500kg
Classic Tawa
Classic Tawa
Weight of each Tawa
Classic Tawa
DAILY PRODUCTION
Monthly
Monthly
Average
Average
Production
Working Date
Daily Total Non-Stick Production
Daily Classic Tawa Production
10000pieces
25days
2400pieces
400kg

SHARE OF COOKING
VOK IN NON-STICK
Classic Tawa
Percentage of Classic Tawa
60000 pieces
10000 pieces
16%
INTERPRETATION:
As we know that total production of NON-STICK department is 60000kg and
CLASSIC TAWA production is 975kg on monthly basis. Its monthly percentage in
total production is (10000/60000=16%). Same is the case for daily basis because
daily production of NON-STICK is 2400kg and CLASSIC TAWA is 340kg so its daily
base percentage is (400/2400=16%). So it is clear that CLASSIC TAWA is 16% of the
total NON-STICK production.
Raw Materials:
Raw materials are the main source in finding the cost of the CLASSIC TAWA.
SONEX COOKWARE
49

Serial
no
Name of items
Un
it
Quanti
ty
Unit
Price
Amonut
(Rs)
Aluminum
kg
0.85
185
157.25
Cost of colour
kg
0.02
2500
50
Side handle(1 each

Tawa)
pc
s
50
50
Ribet (2 each Tawa)
pc
s
Screw (2 each Tawa)
pc
s
Polly Bag
kg
0.015
211
3.165
Jacket
pc
s
10
10
pc
s
50
50
Box
TOTAL
Rs 324.415
Machinery:
Table for Machinery
Seri
al
NO
1
Type of
Machinery
Furnace
SONEX COOKWARE
Price
(Rs)
40000
0
Depreciation
Annually
20000
50
Depreciation
Monthly
1666.6
dye
hot rolling
4
5
cold rolling
cutting
annealing
7
8
9
draw
surface cutting
surface polishing
10
11
12
13
14
15
16
sand blasting
inside premier
coating
baking(100c)
inside top
coating
baking(427c)
outside premier
coating
17
baking(100c)
outside top
coating
18
baking(310c)
19
bottom tooling
20
handle fixing
21
delivery truck
50000
0
45000
00
45000
00
65000
12000
00
90000
0
60000
60000
18000
00
60000
0
35000
00
60000
0
35000
00
60000
0
60000
0
60000
0
60000
0
60000
0
25000
0
15000
00
26935
000
25000
2083.3
225000
18750
225000
18750
3250
60000
270.83
5000
45000
3750
3000
3000
90000
250
250
7500
30000
2500
175000
14583.3
30000
2500
175000
14583.3
30000
2500
30000
2500
30000
2500
30000
2500
30000
2500
12500
1041.6
75000
6250
1346750
112229.1

SONEX COOKWARE
51

=>Rs.1346750).
Total Depreciation per month (1346750 l 12 =>Rs112229.1) OR
(26935000*0.41=>Rs.112229.1)
Total monthly production of the Classic Tawa = 8500 kg or 10000 pcs

Classic Tawa Share in the total production = 16%
Total cost of machines for the 1500 CLASSIC TAWA = (16%*112229.1
=>R 15899.13)
Labor:
Serial
no
1
2

No of
Departments
Person
15
185
Salaries or Wages
per Month
250,000
1,400,000
Fixed Cost:
Total production capacity of the company = 10000 per monthly
Total share of the CLASSIC TAWA in fixed labor cost =16%* 250,000
=> Rs35416.67 per month
Variable Cost:
SONEX COOKWARE
52
Share
of
the
CLASSIC
TAWA
in
the
total
production
0.650/60000=0.0010833%
Charges to the production department of
=0.0010833 % of 1, 400,000 => Rs. 19.8 per unit
CLASSIC
TAWA
Expenditures of the Production Department:
Serial no
1
2
3

Expenditures
Expenditures per Unit
Gas Bill
600000
7.08
Electricity Bill
500000
8.5
Generator
100000
1.41
TOTAL
1200000
16.99
Variable Cost:
Total Electricity expenses per month= Rs 500,000
Total
Electricity
expenses
per
unit
0.850/60000=0.0010833%*500,000=> Rs 7.08
CLASSIC
TAWA=
Total Gas expenses per month= Rs 600,000

Total
Gas
expenses
per
unit
0.850/60000=0.0010833%*500,000=> Rs.8.5
SONEX COOKWARE
53
CLASSIC
TAWA=
Total Generator expenses per month = Rs 100,000

Total Generator expenses per unit CLASSIC TAWA=
0.850/60000=0.0010833%*100,000=> Rs.1.41

Table for Other Expenditures for Management
Department
Seri Type of
Expenditur
% Expenditures
al no Expenditures
es(Rs)
per month
Telephone
1
Bills
18000
2550
Watchmen
2
Salaries
70000
9916.6
Driver
3
Salaries
30000
4250
Computer
4
Expenses
22500
3187.5
Display
5
Expenses
20833.3
2951.3
6
Electricity Bill
100000
14166.6
Factory
7
Overheads
50000
7083.3
TOTAL
311333.3
44105.5
Fixed Cost:
Total production capacity of the company = 10000 pieces per
monthly
Total share of the CLASSIC TAWA in telephone bill =16%* 18,000 =>
Rs.2550 per month
SONEX COOKWARE
54

Total production capacity of the company for = 10000 pieces per
monthly
Total share of the CLASSIC TAWA in watchman salaries =16%*
70,000 => Rs9916.667 per month
Total Fixed Cost of the Electricity bill = Rs.100, 000
monthly
Total share of the CLASSIC TAWA in Electricity bill =16%* 100,000

Total production capacity of the company =10000 pieces per
monthly
Total share of the CLASSIC TAWA in computer expenses =16%*25,
500 => Rs.3187.5 per month
Total Fixed Cost of the display expenses= Rs.20, 833
monthly
Total share of the CLASSIC TAWA in display expenses =16%*20, 833
monthly
Total share of the CLASSIC TAWA in Driver salaries =16%30, 000 =>
Rs.14166.6 per month
SONEX COOKWARE
55

monthly
Total share of the CLASSIC TAWA in kitchen expenses =16%*50, 000
Total Fixed Cost:
Total share of the Classic Tawa in fixed labor cost =16%* 250,000 =>
Total share of the Classic Tawa in telephone bill =16%* 18,000 =>
Rs.2525 per month
Total share of the Classic Tawa in electricity bill =16%* 100,000 =>
Rs.9916.6 per month
Total share of the Classic Tawa in watchman =16%* 70,000 =>
Rs.4250 per month
Total share of the Classic Tawa in computer =16%*25, 500 =>
Rs.3187.5 per month
Total share of the Classic Tawa in display expenses =16%*20, 833
Total share of the Classic Tawa in drivers salaries=16%*30, 000 =>
Total share of the Classic Tawa in kitchen expenses =16%*50, 000
Cost of Raw material for producing one complete set of the Classic
Tawa is Rs.364.3
SONEX COOKWARE
56
Charges to the production department of Classic Tawa =0.0010833

% of 1, 400,000 => Rs.19.8 per unit
Total
Electricity
expenses
per
unit
Classic
Tawa
0.850/60000=0.0010833%*500,000=> Rs.7.08
Total
Gas
expenses
per
unit
Classic
Tawa
0.850/60000=0.0010833%*500,000=> Rs.8.5
Total Generator expenses per unit Classic Tawa =
0.850/60000=0.0010833%*100,000=> Rs.1.41
Cost Function:
C(x) = 9542.35 + 364 X
INTERPRETATION:
From the above calculations it is clear that the Rs.9542.35 (fixed cost) are to
be charged for every fan whether there is production or not. The Rs.364
Revenue Function
R(x) = 495x
SONEX COOKWARE
57
INTERPRTATION:
From the above equation it is clear that price of Classic Tawa is Rs 495. As
Classic Tawa is calculated by multiplying the price of Classic Tawa with
quantity sold.
Profit Function:
= 495x (9542.35 + 364.3X)
= 495x 9542.35 + 364.3X
= 131X 9542.35
INTERPRTATION:
function. By putting the value of x thats in kgs for Classic Tawa. We get the
profit for Classic Tawa.
Break Even Analysis

Revenue = cost
495x = 9542.35 + 364.3X
SONEX COOKWARE
58
X = 730pieces
INTERPRTATION:
production of Classic Tawa is equals to 730 pieces cost of covered.
Production of each additional unit making the revenue for Sonex Cookwear.
Quantity Demanded:
CLASSIC TAWA
Year
Price
Demand
Jan
470
7000
SONEX COOKWARE
59
Feb
470
7200
Mar
470
7500
Apr
470
7700
May
470
7700
Jun
470
7750
July
485
8000
Aug
485
8500
Sep
485
8500
Oct
485
8900
Nov
485
9000
Dec
485
9200
Jan
495
9300
Feb
495
9500
Mar
495
9800
Apr
495
10000
May
495
10500
Jun
495
10500
200
9
INTERPRETATION:
We have data of one and half year of Classic Tawa so split this data into
(470, 7475) (485, 8683) (495, 9933)

Function for Classic Tawa.
(470, 7475) (485, 8683) (495, 9933)
SONEX COOKWARE
60

Q
= ap2 + bp + c
7475=a (470)2 + b (485) +c

7475=220900a + 470b + c------------ (1)
8683=a (485)2 + b (485) +c
8683=235225a + 485b +c------------ (2)
9933=a (495)2 + b (495) +c
9933=245025a + 495b +c------------- (3)
Q d = 1.77 p2 - 1617.45 p + 374916.3
INTERPRETATION:
This is Quadratic Demand Function for Clasic Tawa. Now this equation we get the
value for demand of Classic Tawa from any price of Classic Tawa.
Quantity Supplied:
CLASSIC TAWA
Year
Price
Supply
Jan
470
6000
Feb
470
6300
Mar
470
6300
Apr
470
6500
SONEX COOKWARE
61
May
470
6550
Jun
470
6600
July
485
6900
Aug
485
7000
Sep
485
7200
Oct
485
7500
Nov
485
7800
Dec
485
8000
Jan
495
8000
Feb
495
8500
Mar
495
8600
Apr
495
9000
May
495
9400
Jun
495
10000
2009
INTERPRETATION:
We have data of one and half year of Classic Tawa so split this data into
(470, 6375) (485, 7400) (495, 8916)

(470, 6375) (485, 7400) (495, 8916)
Q s = ap2 + bp + cs
6375=a (470)2 + b (470) +c
SONEX COOKWARE
62
6375=220900a + 470b + c------------ (1)

7400=a (485)2 + b (485) +c
7400=235225a + 485b +c------------ (2)
8916=a (495)2 + b (495) +c
8916=245025a +495b +c------------- (3)
Q s = 3.33 p2 - 3111.81 p + 73324
INTERPRETATION:
This is Quadratic Supply Function for Classic Tawa. Now this equation we get
the value for supply of Classic Tawa from any price of Classic Tawa.
Cash Discount:
Date
1/1/2010
2/1/2010
5/1/2010
8/1/2010
15/1/2010
16/1/2010
20/1/2010
Product
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
SONEX COOKWARE
QT.
Gross
Price
Discou
nt
Discount
Price
Net
payment
990
3%
29.7
960.3
495
6%
29.7
465.3
1485
4%
59.4
1425.6
1980
10%
198
1782
2475
3%
74.25
2400.75
2970
3%
89.1
2880.9
3465
8%
277.2
3187.8
63
25/1/2010
29/1/2010
3/2/2010
4/2/2010
6/2/2010
9/2/2010
12/2/2010
13/2/2010
16/2/2010
19/2/2010
23/2/2010
26/2/2010
28/2/2010
1/3/2010
4/3/2010
7/3/2010
10/3/2010
14/3/2010
15/3/2010
17/3/2010
21/3/2010
24/3/2010
27/3/2010
30/3/2010
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
SONEX COOKWARE
3960
4%
158.4
3801.6
4455
6%
267.3
0
4187.7
0
495
2%
9.9
485.1
495
5%
24.75
470.25
1980
7%
138.6
1841.4
990
8%
79.2
910.8
990
4%
39.6
950.4
1485
7%
103.95
1381.05
990
2%
19.8
970.2
990
9%
89.1
900.9
495
10%
49.5
445.5
495
14%
69.3
425.7
495
5%
24.75
0
470.25
0
1485
6%
89.1
1395.9
990
4%
39.6
950.4
495
5%
24.75
470.25
1485
8%
118.8
1366.2
495
3%
14.85
480.15
990
9%
89.1
900.9
990
3%
29.7
960.3
1485
5%
74.25
1410.75
990
3%
29.7
960.3
990
5%
49.5
940.5
495
5%
24.75
470.25
64
2/4/2010
4/4/2010
6/4/2010
9/4/2010
12/4/2010
16/4/2010
19/4/2010
23/4/2010
25/4/2010
26/4/2010
28/4/2010
30/4/2010
1/5/2010
3/5/2010
6/5/2010
10/5/2010
13/5/2010
15/5/2010
18/5/2010
21/5/2010
23/5/2010
25/5/2010
28/5/2010
30/5/2010
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
Classic
Tawa
SONEX COOKWARE
495
5%
24.75
470.25
495
6%
29.7
465.3
495
7%
34.65
460.35
1485
8%
118.8
1366.2
990
10%
99
891
1485
3%
44.55
1440.45
990
2%
19.8
970.2
990
5%
49.5
940.5
495
6%
29.7
465.3
495
4%
19.8
475.2
495
5%
24.75
470.25
990
2%
19.8
0
970.2
0
990
4%
39.6
950.4
990
5%
49.5
940.5
990
7%
69.3
920.7
990
3%
29.7
960.3
495
3%
14.85
480.15
495
2%
9.9
485.1
1385
9%
124.65
1260.35
990
4%
39.6
950.4
495
5%
24.75
470.25
495
3%
14.85
480.15
495
6%
29.7
465.3
495
7%
34.65
460.35
65
TOTAL
12
6
62270
297%
3411.45
58858.55
INTERPRETATION:
on cash basis to reference customers
Inventory:
Date
1/5/2010
2/5/2010
3/5/2010
4/5/2010
5/5/2010
6/5/2010
7/5/2010
8/5/2010
9/5/2010
10/5/201
0
11/5/201
0
12/5/201
0
13/5/201
0
14/5/201
0
15/5/201
0
16/5/201
0
17/5/201
0
18/5/201
Pieces
360
360
360
384
384
384
384
432
432
SONEX COOKWARE
Table for Inventory

Price
490
490
490
495
495
490
490
490
490
value of stock
176400
176400
176400
190080
190080
188160
188160
211680
211680
360
490
176400
360
490
176400
360
490
176400
360
490
176400
384
490
188160
384
490
188160
360
500
180000
432
360
500
500
216000
180000
66
0
19/5/201
0
20/5/201
0
21/5/201
0
22/5/201
0
23/5/201
0
24/5/201
0
25/5/201
0
26/5/201
0
27/5/201
0
28/5/201
0
29/5/201
0
30/5/201
0
360
500
180000
360
500
180000
360
500
180000
432
500
216000
432
500
216000
432
500
216000
432
495
213840
432
495
213840
432
495
213840
360
495
178200
360
495
178200
360
11592
495
178200
5731080

1)

= 5736480/11592
=Rs. 494.86
Value of Inventory = 400 * 494.86
=Rs .197944
SONEX COOKWARE
67
2)

Date
Units
Price(Rs)
Value of
Inventory(Rs)
29/5/2010
40
495
19800
30/5/2010
360
495
178200
400
3)
198000
Table for LIFO Method

Date
Units
Price(Rs)
Value of
Inventory(Rs)
1/5/2010
360
490
176400
2/5/2010
40
490
19600
400
196000

C(x) = 6542.35 + 364x
C (8500) = 6542.35 + 364(8500)
C =Rs.365.12
MARKUP ON COST FOR CLASSIC TAWA:

MAKRUP ON COST =
SONEX COOKWARE
68
= 17 %
INTERPRETATION:
From the above the equation it is that cost of Classic Tawa is Rs 365.12. We have
taken Rs 65 over cost. So as of it have 17% over cost of Classic Tawa.
MARKUP ON SALE FOR CLASSIC TAWA:
MAKRUP ON SALE=
=
= 13.3%
INTERPRETATION:
From the above the equation it is that sale of Classic Tawa is Rs 495. We have taken
Rs 65 over sell as we in case of cost. So as of it have 13.3% over sell of Classic
Tawa.

P(x) =131x+10945.39
SONEX COOKWARE
69
INTERPRETATION:
Here we have applied the derivative over cost function of Classic Tawa. As a result
of it we get marginal cost of Classic Tawa that is 131.

C(x) = 9442.35 + 364x
INTERPRETATION:
Here we have applied the derivative over profit function of Classic Tawa. As a
result of it we get marginal profit of Classic Tawa that is 364.

SONEX COOKWARE
70

Integration
(8500, 3103542)
C=364 x + c
3103542=364(8500) +c
3103542-3094000=c
9542.35 = c
Cost = 9542.35 + 364 x
INTERPRETATION:
Here we have applied the integration over marginal cost of Classic Tawa. As a result
of it we get cost function of Classic Tawa that is 9542.35 + 364 x.

Integration
SONEX COOKWARE
71
R=495 x + c
(7000, 346500)
346500=495 (7000) + c
346500 346500 = c
0=c
R = 495 x
INTERPRETATION:
Here we have applied the integration over marginal cost of Classic Tawa. As a result
of it we get cost function of Classic Tawa that is 495 x.
STYLISH FRY PAN (21CM):

EXPORT
SONEX COOKWARE
72
countries such as Europe and UAE. STYLISH FRY PAN is one of its non-stick products
and their last four year exports are
STYLISH FRY PAN 21 CM(Year 2010)

January 2010 to May 2010
4120
Pcs.
9580
Pcs.
8940
Pcs.
7950
Pcs.
9850
Pcs.
8850
Pcs.
7690
Pcs.
STYLISH FRY PAN 21 CM (Year 2009)
PRODUCTION:
SONEX COOWARE is producing different kind of COOKWARE products. These
steel. As we are only concern with Non-Stick and its monthly production is 60000kg.
Stylish Fry Pan is 8500kg. Detail of which is given in the table. Weight of single Pan
is 0.460kg and average monthly production is 100 pcs. So as a result, its total
SONEX COOKWARE
73
monthly production is (100 pcs*0.460kg = 46kg).Daily basis production of Stylish

Fry Pan is 1.84kg. Daily basis product of VOK is 4pcs so (4 pcs*0.460kg=1.84kg)
MONTHLY PRODUCTION
27CM
Stylish Fry Pan
60000pieces
100pieces
Stylish Fry Pan
0.460kg
Weight of each Pan
46kg
Stylish Fry Pan
DAILY PRODUCTION
Monthly Production
Monthly Working Date
Average Daily Non-Stick Production
Average Daily Stylish Fry Pan
Production
100pieces
25days
2400pieces
4kg

SHARE OF COOKING VOK IN NON-STICK
Stylish Fry Pan
Percentage of Stylish Fry Pan
60000 kg
100kg
0.16%
INTERPRETATION:
As we know that total production of NON-STICK department is 60000 pieces and
Stylish Fry Pan production is 100 pieces on monthly basis. Its monthly percentage in
total production is (100/60000=0.16%). Same is the case for daily basis because
daily production of NON-STICK is 2400 pieces and Stylish Fry Pan is 4 pieces so its
daily base percentage is (4/2400=0.16%). So it is clear that Stylish Fry Pan is 0.16%
of the total NON-STICK production.
Raw Materials:
Raw materials are the main source in finding the cost of the Stylish
Fry Pan.
SONEX COOKWARE
74

Serial
no
Uni
t
Name of items
Quantit
y
Unit
Price
Amonut
(Rs)
Aluminum
kg
0.46
185
85.1
Cost of colour
kg
0.021
2500
52.5
Side handle(1 each

pan)
pcs
40
40
Knob
pcs
30
30
Glass Lid
pcs
120
120
Ribet (2 each pan)
pcs
Screw (2 each pan)
pcs
Polly Bag
kg
0.03
211
6.33
Box
pcs
20
20
TOTAL
Rs 357.93
Machinery:
Table for Machinery
Seri
al
NO
1
Type of Machinery
Furnace
SONEX COOKWARE
Price(
Rs)
40000
Depreciation
Annually
20000
75
Depreciation
Monthly
1666.6
dye
hot rolling
4
5
cold rolling
cutting
annealing
7
8
9
draw
surface cutting
surface polishing
10
11
sand blasting
inside premier
coating
12
baking(100c)
13
inside top coating
14
baking(427c)
outside premier
coating
15
16
17
baking(100c)
outside top
coating
18
baking(310c)
19
bottom tooling
20
handle fixing
21
delivery truck
0
50000
0
45000
00
45000
00
65000
12000
00
90000
0
60000
60000
18000
00
60000
0
35000
00
60000
0
35000
00
60000
0
60000
0
60000
0
60000
0
60000
0
25000
0
15000
00
26935
000
25000
2083.3
225000
18750
225000
18750
3250
60000
270.83
5000
45000
3750
3000
3000
90000
250
250
7500
30000
2500
175000
14583.3
30000
2500
175000
14583.3
30000
2500
30000
2500
30000
2500
30000
2500
30000
2500
12500
1041.6
75000
6250
1346750
112229.1

SONEX COOKWARE
76

=>Rs.1346750).
Total Depreciation per month (1346750 l 12 =>Rs112229.1) OR
(26935000*0.41=>Rs.112229.1)
Total monthly production of the Stylish Fry Pan = 46kg or 100 pcs
Stylish Fry Pan Share in the total production = 0.16%
Total cost of machines for the 100 Stylish Fry Pan =
(0.16%*112229.1 =>Rs86.04)
Labor:
Serial
no
1
2

No of
Departments
Person
15
185
Salaries or Wages
per Month
250,000
1,400,000
Fixed Cost:
Total share of the STYLISH FRY PAN in fixed labor cost =0.16%*
250,000 => Rs191.6 per month
Variable Cost:
SONEX COOKWARE
77

Share
of
the
STYLISH
FRY
PAN
in
the
total
production
0.460/60000=0.0010833%
Charges to the production department of STYLISH
=0.0010833 % of 1, 400,000 => Rs. 10.7 per unit
.Expenditures
Serial
no
1
2
3
FRY
PAN
of the Production Department:

Type of
Expenditures
Expenditures
Expenditures per Unit
Gas Bill
600000
4.6
Electricity Bill
500000
3.83
Generator
100000
0.76
TOTAL
1200000
9.2
Variable Cost:
Total Electricity expenses per month= Rs 500,000
Total Electricity expenses per unit STYLISH
0.850/60000=0.0010833%*500,000=> Rs 3.8
Total Gas expenses per month= Rs 600,000
SONEX COOKWARE
78
FRY
PAN
Total
Gas
expenses
per
unit
STYLISH
FRY
PAN
0.460/60000=0.0010833%*500,000=> Rs.4.6
Total Generator expenses per month= Rs 100,000
Total Generator expenses per unit STYLISH FRY PAN =
0.460/60000=0.0010833%*100,000=> Rs.0.76
Serial
no
1
Table for Other Expenditures for Management Department

Type of
% Expenditures per
Expenditures
Expenditures(Rs)
month
Telephone Bills
Watchmen
Salaries
18000
13.8
70000
53.66
30000
23
Driver Salaries
Computer
Expenses
22500
17.25
Display Expenses
20833.3
15.97
Electricity Bill
Factory
Overheads
100000
76.66
50000
38.33
311333.3
238.67
2
3
TOTAL
Fixed Cost:
Total share of the STYLISH FRY PAN in telephone bill =0.16%*
18,000 => Rs.13.8 per month
SONEX COOKWARE
79
Total production capacity of the company for STYLISH FRY PAN = 4

pieces per monthly
Total share of the STYLISH FRY PAN in watchman salaries =0.16%*
70,000 => Rs53.6 per month
Total Fixed Cost of the electricity bill = Rs.100, 000

Total share of the STYLISH FRY PAN in electricity bill =0.16%*
100,000 => Rs.23 per month
Total share of the in computer expenses =0.16%*25, 500 =>
Rs.17.25 per month
Total Fixed Cost of STYLISH FRY PAN the display expenses= Rs.20,
833
Total production capacity of the company =4 pieces per monthly
Total share of the STYLISH FRY PAN in display expenses =0.16%*20,
Total share of the STYLISH FRY PAN in Driver salaries
=0.16%*30,000 => Rs.76.66 per month
SONEX COOKWARE
80
Total share of the STYLISH FRY PAN in kitchen expenses =0.16%*50,


Total Fixed Cost:
Total share of the STYLISH FRY PAN in fixed labor cost =0.16%*
250,000 => Rs.191.6 per month
Total share of the STYLISH FRY PAN in telephone bill =0.16%*
18,000 => Rs13.8 per month
Total share of the STYLISH FRY PAN in electricity bill =0.16%*
100,000 => Rs.76.6 per month
Total share of the STYLISH FRY PAN in watchman =0.16%* 70,000
Total share of the STYLISH FRY PAN in computer =0.16%*25, 500 =>
Rs.17.25 per month
Total share of the STYLISH FRY PAN in display expenses =0.16%*20,
Total share of the STYLISH FRY PAN in driver salaries=0.16%*30,000
=> Rs.23per month
Total share of the STYLISH FRY PAN in kitchen expenses =0.16%*50,
Cost of Raw material for producing one complete set of the STYLISH
FRY PAN is Rs.3
Charges
to
the
production
department
of
STYLISH
FRY
PAN
=0.0010833 % of 1, 400,000 => Rs.10.7 per unit

Total
Electricity
expenses
per
unit
STYLISH
0.460/60000=0.0010833%*500,000=> Rs.3.8
SONEX COOKWARE
81
FRY
PAN
Total
Gas
expenses
per
unit
STYLISH
FRY
PAN
0.460/60000=0.0010833%*500,000=> Rs.4.6
Total Generator expenses per unit
STYLISH FRY PAN =
0.460/60000=0.0010833%*100,000=> Rs.0.766
Cost Function:
C(x) = 516.3 + 380 X
INTERPRTATION:
From the above calculations it is clear that the Rs.516.3 (fixed cost) are to
be charged for every fan whether there is production or not. The Rs.380
Revenue Function:
R(x) = 490x
INTERPRTATION:
From the above equation it is clear that price of Stylish Fry Pan is Rs 490. As
Stylish Fry Pan is calculated by multiplying the price of Stylish Fry Pan with
quantity sold.
SONEX COOKWARE
82
Profit Function:
= 490x (516.3 + 380 X)
= 4950x 516.3 + 380 X
= 110X 516.3
INTERPRTATION:
function. By putting the value of x thats in pieces for Stylish Fry Pan. We get
the profit for Stylish Fry Pan.
Break Even Analysis

Revenue = cost
490x = 516.3 + 380 X
X = 5 pieces
INTERPRTATION:
SONEX COOKWARE
83
production of Stylish Fry Pan is equals to 5 pieces cost of covered.

Production of each additional unit making the revenue for Sonex Cookwear.
Quantity Demanded:
STYLISH FRY PAN
Year
Price
Demand
Jan
470
30
Feb
470
35
Mar
470
40
Apr
470
50
May
470
60
Jun
470
70
July
480
75
SONEX COOKWARE
84
Aug
480
80
Sep
480
85
Oct
480
90
Nov
480
75
Dec
480
65
Jan
490
100
Feb
490
100
Mar
490
55
Apr
490
50
May
490
45
Jun
490
40
2009
INTERPRETATION:
We have data of one and half year of Stylish Fry Pan so split this data into
(470, 48) (480, 78) (490, 65)

Function for Stylish Fry Pan.
(470, 48) (480, 78) (490, 65)
Q
= ap2 + bp + c
48=a (470)2 + b (470) +c

48=220900a + 470b + c------------ (1)
78=a (480)2 + b (480) +c
SONEX COOKWARE
85
78=230400a + 480b +c------------ (2)

65=a (490)2 + b (490) +c
65=240100a + 490b +c------------- (3)
Q
= - 0.215 p2 + 207.25 p - 49866
INTERPRETATION:
This is Quadratic Demand Function for Stylish Fry Pan. Now this equation we
get the value for demand of from any price of Stylish Fry Pan.
Quantity Supplied:
STYLISH FRY PAN
Year
Price
Supply
Jan
470
50
Feb
470
50
Mar
470
50
Apr
470
60
May
470
70
Jun
470
90
July
480
90
Aug
480
90
Sep
480
90
Oct
480
100
Nov
480
90
SONEX COOKWARE
86
Dec
480
80
Jan
490
70
Feb
490
60
Mar
490
55
Apr
490
50
May
490
100
Jun
490
100
2009
INTERPRETATION:
We have data of one and half year of Stylish Fry Pan so split data into three
periods each for six months as its required for determined the quadratic
function. We required three values so take average of every six months.
After taking average we have a three points that are:
(470, 61) (480, 90) (490, 56)

(470, 61) (480, 90) (490, 56)
Q
= ap
+ bp + cs
61=a (470)2 + b (470) +c

61=220900a + 470b + c------------ (1)
90=a (480)2 + b (480) +c
90=230400a + 480b +c------------ (2)
56=a (490)2 + b (490) +c
SONEX COOKWARE
87
8916=240100a +490b +c------------- (3)

Q s = - 0.31p2 + 297.3p - 71190
INTERPRETATION:
This is Quadratic Supply Function for Stylish Fry Pan. Now this equation we
get the value for demand of from any price of Stylish Fry Pan.
Cash Discount:
Date
1/1/2010
Product
Stylish fry pan
QT
.
1
Gross Price
490
Discount
5%
2/1/2010
5/1/2010
Stylish fry pan

Stylish fry pan
1
2
490
980
5%
6%
9/1/2010
13/1/2010
Stylish fry pan

Stylish fry pan
3
1
1470
490
7%
4%
18/1/2010
22/1/2010
Stylish fry pan

Stylish fry pan
1
1
490
490
8%
3%
26/1/2010
28/1/2010
Stylish fry pan

Stylish fry pan
3
2
1470
980
8%
7%
2/2/2010
Stylish fry pan
490
5%
4/2/2010
7/2/2010
Stylish fry pan

Stylish fry pan
1
1
490
490
5%
5%
9/2/2010
11/2/2010
Stylish fry pan

Stylish fry pan
1
1
490
490
6%
7%
15/2/2010
17/2/2010
Stylish fry pan

Stylish fry pan
1
3
490
1470
5%
10%
22/2/2010
Stylish fry pan
980
7%
SONEX COOKWARE
88
Discount Price
Net payment
24.5
24.5
58.8
102.9
19.6
39.2
14.7
117.6
68.6
0
24.5
24.5
24.5
29.4
34.3
24.5
147
68.6
465.5
465.5
921.2
1367.1
470.4
450.8
475.3
1352.4
911.4
0
465.5
465.5
465.5
460.6
455.7
465.5
1323
911.4
25/2/2010
Stylish fry pan
980
5%
27/2/2010
29/2/2010
Stylish fry pan

Stylish fry pan
2
1
980
490
8%
8%
1/3/2010
Stylish fry pan
980
8%
3/3/2010
6/3/2010
Stylish fry pan

Stylish fry pan
2
1
980
490
6%
7%
8/3/2010
14/3/2010
Stylish fry pan

Stylish fry pan
1
1
490
490
5%
6%
16/3/2010
17/3/2010
Stylish fry pan

Stylish fry pan
1
4
490
1960
7%
8%
20/3/2010
Stylish fry pan
980
5%
25/3/2010
Stylish fry pan
490
8%
26/3/2010
29/3/2010
Stylish fry pan
1470
9%
1/4/2010
Stylish fry pan
980
10%
4/4/2010
6/4/2010
Stylish fry pan

Stylish fry pan
3
1
1470
490
10%
5%
10/4/2010
13/4/2010
Stylish fry pan

Stylish fry pan
3
2
1470
980
6%
8%
15/4/2010
18/4/2010
Stylish fry pan

Stylish fry pan
2
1
980
490
7%
5%
22/4/2010
24/4/2010
Stylish fry pan

Stylish fry pan
1
1
490
490
8%
8%
26/4/2010
29/4/2010
Stylish fry pan

Stylish fry pan
1
1
490
490
9%
6%
30/4/2010
Stylish fry pan
1479
10%
1/5/2010
3/5/2010
Stylish fry pan

Stylish fry pan
4
2
1960
980
12%
9%
6/5/2010
10/5/2010
Stylish fry pan

Stylish fry pan
3
1
1470
490
7%
7%
13/5/2010
15/5/2010
Stylish fry pan

Stylish fry pan
3
2
1470
980
8%
5%
18/5/2010
21/5/2010
Stylish fry pan

Stylish fry pan
1
1
490
490
5%
5%
23/5/2010
25/5/2010
Stylish fry pan

Stylish fry pan
1
1
490
490
5%
5%
28/5/2010
Stylish fry pan
980
5%
SONEX COOKWARE
89
49
78.4
39.2
0
78.4
58.8
34.3
24.5
29.4
34.3
156.8
49
39.2
132.3
0
0
98
147
24.5
88.2
78.4
68.6
24.5
39.2
39.2
44.1
29.4
147.9
0
235.2
88.2
102.9
34.3
117.6
49
24.5
24.5
24.5
24.5
49
931
901.6
450.8
0
901.6
921.2
455.7
465.5
460.6
455.7
1803.2
931
450.8
1337.7
0
0
882
1323
465.5
1381.8
901.6
911.4
465.5
450.8
450.8
445.9
460.6
1331.1
0
1724.8
891.8
1367.1
455.7
1352.4
931
465.5
465.5
465.5
465.5
931
30/5/2010
Stylish fry pan
1470
6%
TOTAL
94
46069
364%
88.2
3342.7
1381.8
42726.3
INTERPRETATION:
on cash basis to reference customers.
Inventory:
Table for Inventory
Date
1/5/2010
2/5/2010
3/5/2010
4/5/2010
5/5/2010
6/5/2010
7/5/2010
8/5/2010
9/5/2010
10/5/201
0
11/5/201
0
12/5/201
0
13/5/201
0
14/5/201
0
15/5/201
0
16/5/201
0
17/5/201
0
Piece
s
3
3
3
3
3
3
6
6
6
Price
490
490
490
485
485
485
485
485
485
value of stock
1470
1470
1470
1455
1455
1455
2910
2910
2910
485
2910
485
2910
485
2910
485
4365
485
4365
485
4365
485
4365
485
1455
SONEX COOKWARE
90
18/5/201
0
19/5/201
0
20/5/201
0
21/5/201
0
22/5/201
0
23/5/201
0
24/5/201
0
25/5/201
0
26/5/201
0
27/5/201
0
28/5/201
0
29/5/201
0
30/5/201
0
485
1455
485
1455
480
480
480
1440
480
1440
480
1440
480
1440
480
2880
480
2880
480
1440
480
960
6
134
480
2880
64860

1)

= 68220/141
=Rs 483.82
Value of Inventory = 20 * 483.82
SONEX COOKWARE
91
=Rs 9676.4
2)

Date
26/5/2010
27/5/2010
28/5/2010
29/5/2010
30/5/2010
3)
Uni
ts
3
6
3
2
6
20
Price(Rs)
480
480
480
480
480
Value of Inventory(Rs)
1440
2880
1440
960
2880
8160
Date
1/5/20
10
2/5/20
10
3/5/20
10
4/5/20
10
5/5/20
10
6/5/20
10
7/5/20
10
Units
Price(Rs)
Value of Inventory(Rs)
490
1470
490
1470
490
1470
485
1455
485
1455
485
1455
2
20
485
970
8275

C(x) = 516.3 + 38 0x
C (975) = 516.3 + 380 (46)
C = Rs.391.22
MARKUP ON COST FOR STYLISH FRY PAN:

SONEX COOKWARE
92
MAKRUP ON COST =
=
= 14.05 %
INTERPRETATION:
From the above the equation it is that cost of Stylish Fry Pan is Rs 391.22. We have
taken Rs 55 over cost. So as of it have 14% over cost of Stylish Fry Pan.
MARKUP ON SALE FOR TYLISH FRY PAN:
MAKRUP ON SALE =
=
= 11.22 %
INTERPRETATION:
From the above the equation it is that sale of i Stylish Fry Pan s Rs 490. We have
taken Rs 55 over sell as we in case of cost. So as of it have 11.22% over sell of
Stylish Fry Pan.

P(x) =110x+516.3
SONEX COOKWARE
93
INTERPRETATION:
Here we have applied the derivative over cost function of Stylish Fry Pan. As
a result of it we get marginal cost of Stylish Fry Pan that is 110.

C(x) = 380x + 516.3
INTERPRETATION:
Here we have applied the derivative over profit function of Stylish Fry Pan.
As a result of it we get marginal profit of Stylish Fry Pan that is 380.

SONEX COOKWARE
94
Marginal Cost = 380

Integration
(46, 17996.3)
17996.3=380(46) +c
17996.3=17480+c
576.3=c
Cost = 567.3 + 380 x
INTERPRETATION:
Here we have applied the integration over marginal cost of Stylish Fry Pan.
As a result of it we get cost function of Stylish Fry Pan that is 576.3 + 380 x.

Integration
SONEX COOKWARE
95
(46, 22540)
22540=490(46) +c
22540-22540=c
0=c
R=490x
INTERPRETATION:
Here we have applied the integration over marginal cost of Stylish Fry Pan. As a
result of it we get cost function of Stylish Fry Pan that is 490 x.
PROBLEM OF SONEX COOKWARE:

SONEX COOKWARE is facing a problem of absenteeism so we decided to
conduct survey to deduct this and its impact over production.
Q # How many unscheduled absence does you usually have in a month?
TABULAR REPRESENTATION:
Sr. No
1
2
3
4
Options
Two
Four
Six
Eight
No of person
40
5
3
2
50
GRAPHICAL REPRESENTATION:
SONEX COOKWARE
96
Percentage
80
10
6
4
100
UNSCHEDULE ABSENCE
80
60
Percetage
40
20
0
INTERPRETATION:
It is a question for which we are putting all of over efforts. We have to
determine this problem as it is one of the Topics of my project, if the reason
for my research which is problem claim by SONEX. Graph indicates that 80%
employees with 2 absenteeism, 10% with 4, 6% with 6 and 4% with 8 on
monthly basis. It clearly indicates that every employee have absent from
work place with some percentage. It means the claim by SONEX is correct so
its very severing condition by company. It is effect is working. Either the
problem is because of SONEX because of employees. We have to search for
the reason behind the problem. So let start what SONEX have to do to solve
this problem?
DECREASE IN PRODUCTIVITY DUE TO

ABSEBTEEISM:
Total production of NON STICK = 60000 pieces
Total working days = 26 Days
Productivity of a single Day = 60000/26 = 2307 pieces
Total workers = 180 Person
Product of single employee per day = 2307/180 =13 pieces
SONEX COOKWARE
97
Total absent per month = 2 x 180 = 360 days

Total decrease in productivity due to absence = 13 x 360 = 4608 pieces
Total productivity after absenteeism= 60000-4608= 55392 pieces
As it is clear from the above if each worker did two absents per month but
they are doing more than this level, it may be 4, 6, or 8 as shown in above
figure. Here we considered standard of 2 absents just for convenience .Total
number of workers are 180 so number of absents are 360 and due to these
absents decrease of productivity is 4608 pieces. So its obvious that the
productivity of SONEX COOKWARE is severally affected due to absenteeism
because after absents production level decrease from the 60000 pieces to
55392 pieces. Its a huge loss in company production capacity.
CONCLUSION:
In the end, we are going to conclude that SONEX COOKWARE is a
multinational company. It is very efficient company. SONEX COOKWARE is
producing hundreds of goods at once. As we have selected the non-stick
portion of SONEX COOKWARE. Its also including large number of goods.
Product list of it has been given above. But we have selected COOKING VOK,
CLASSIC TAWA and STYLISH FRY PAN.
We have applied different mathematical equations over this project. We
have calculated cost function, profit function, revenue function and breakeven of selected three products name as COOKING VOK, CLASSIC TAWA and
STYLISH FRY PAN. We have also applied other mathematical equations over
these selected products. At the end, we have concluded that SONEX
COOKWARE is an efficient company. It is producing the goods at minimum
cost as it is achieve the economies of scale. We are going to force this
SONEX COOKWARE
98
conclusion from that the fact that each selected product of SONEX
COOKWARE have small break-even. Cost and other functions are also
predicting this behavior.
Sonex have to introduce a policy that every employee has to inform about
his or her absent, a day before failure to report to work. On the other hand
Sonex have to contact with labor union have to hire the employees in case of
such absenteeism. In any of employee failure to report to management a
day before will give punishment of no annual vacation or something like
that. Sonex have to introduce a proper department for solution of problem
face by Sonex employees that are reason for absenteeism. This department
will receive the application of employees and discuss their problem with
management and CEO. Implement the possible solution in the proper way.
We have learned a lot after doing this project. Now we able to understand
how these equations are applicable in our practical life. These are not only
the equation but also lot of knowledge about the practical life.
SONEX COOKWARE
99

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BUSINESS MATHEMAT

ALI RAZA BUTT

GHULAM DASTGIR BUTT

EXPENDITURES OF PRODUCTION DEPARTMENT

We want to dedicate our project of business mathematics to our parents. As

As everybody here is informed of the project we were tasked and the

Coated and composite cookware

Enamel over steel

Clad aluminum or copper

Non-metallic cookware can be used in both conventional and microwave ovens.

History of cookware in Pakistan

History of Sonex Cookware

CLASSIC GIFT PACK No. 2

STYLISH PLUS GIFT PACK

STYLISH GIFT PACK

SUPER GIFT PACK

CLASSIC FRYINGPAN NO. 1

CLASSIC FRYINGPAN NO. 2

CLASSIC FRYINGPAN NO. 3

CLASSIC FRYINGPAN NO. 4

SUPER VOK NO. 1

SUPER VOK NO. 2

SUPER MILK PAN 17 cm

SUPER MILK PAN 19 cm

CLASSIC TAWA (30.5 cm)

ROYAL TAWA (30.5 cm)

HOT PLATE (29.0 cm)

JUNIOR TAWA (25.3 cm)

ELEGANT TAWA (34.5 cm)

CLASSIC GIFT PACK

CLASSIC KING HANDI 24 CM

CLASSIC KING HANDI 27 CM

primary factor in determining cooking performance is the thickness of the

Use & Care:

Non-Stick Production process

COOKING VOK (27CM):

SONEX COOKWARE is exporting cookware products from no of years. Export s

COOKING VOK 27 CM (Year 2010)

COOKING VOK 27 CM (Year 2009)

COOKING VOK 27 CM (Year 2008)

COOKING VOK 27 CM (Year 2007)

SHARE OF TOTAL PRODUCTION:

Table for Raw Material

Side handle(2 each

Ribet (4 each Vok)

Screw (4 each Vok)

MACHINE COST AS FIXED COST:

Total Annual Depreciation Cost of Company machines are (26935000*5%

Total Monthly production of the COOKING VOK = 975kg or 1500 pcs

Table for Departments

Expenditures of the Production Department:

Table for Other Expenditures for Production

Total Generator expenses per unit COOKING VOK=

Expenditures of the Fix Over Head:

Total share of the COOKING VOK in watchman salaries =2.5%*

Total Cost = Total Fixed Cost + Total Variable Cost

Total Fixed Cost:

Profit = Revenue Cost

Break Even Analysis:

Quadratic Demand function:

1481=448900a + 670b +c------------- (3)

= - 0.035 p2 + 66.15 p - 27128

Quadratic Supply function:

Q s = 0.085 p2 - 88.55 p - 22600