Submitted by Neeraj Singh +91-9735474240 neerajsingh1@live.

com
City=Kharagpur
Step 1:
Fixed cost
Assumption 1.1 : Stall (Rs. 4*500 for tyres+Rs.1000 wooden bed)=Rs. 3000
Assumption 1.2 : Cost of Gas Stove=Rs. 400
Assumption 1.3 :Cost of Containers= Rs.300
Assumption 1.4 :Cost of Gas Cylinders= Rs.500
Assumption 2: fixed assests are used over 5 years
Variables Costs
Assumption 3: cost of one disposal plastic cup=Rs. 0.5
Assumption 4: cost of 1Kg of sugar =Rs. 40
Assumption 5: cost of 1Kg of Tea=Rs. 300
Assumption 6: cost of one litre of milk=Rs. 40
Assumption 7: Maintenance cost monthly = Rs.100
Assumption 8: 4Kg Gas Cylinder can be for cooking =45*30=1350 minutes
Assumption 9: cost of 1Kg of Gas=Rs.100
Assumption 10: 15 minutes cooking is done for 500 ml of mixture of milk and water
Assumption 11: 500 ml of mixture produces 450 ml of tea
Assumption 12: 75ml of tea = 1 cup of Tea
Assumption 13: 1 tea spoon and 1 tablespoon sugar per cup of tea
Assumption 14: Volume of tea spoon=5ml and volume of table spoon =15 ml
Assumption 15: 100 ml of milk is mixed with 400 ml of water
Assumption 16: cost of one packetof biscuits/chips= Rs.4.5
Assumption 17: Cooking gas is used to cook 6 cups of tea= 15minutes
Step 3:
Seeling Price of Tea per cup= Rs. 8
Seeling Price of one packet of biscuit/chip= Rs. 5

Desnsity of tea (leaves): 0.45gm=1 ml

Desnsity of Sugar :

0.95gm=1 ml

For June:
Step 4: Number of commuters on weekdays 2000 and weekend 1250
Assumptions 1: Total 40 numbers of buses travelling daily
Assumptions 2: 50 passengers on average for buses including mini bus
Assumptions 3: Male commuters : 200 for Age group (0-25),1200 for Age group (25-60),
100 for Age group (60+),Females :500 ....on weekdays
Assumption 4: Male commuters : 150 for Age group (0-25),600 for Age group (25-60),
100 for Age group (60+),Females :400 ....on weekend
Assumption 5: 6 Day working as only most people travel to Medinipur to Govt. Offices
Assumption 6: Only 5% of Age group (0-25) and 10% of Age group (25-60) and 5% of Age group (60+)
And 5% of of women by tea
So Total number of cups of tea sold at the bus-stand in a
month=24*(200*0.05+1200*0.1+100*0.05+500*0.05)+(52/12)*(150*0.05+600*0.1+100*0.05+400*
0.05)= 4240 cups
Assumption 7: There are only two competitiors for selling tea at bus stand and both share market for
selling tea equally so Ramesh sells 2120 cups of tea monthly.

Total time gas cylinder used in June=15*2120/6=5300 minutes

Cost Calculation for June:

5300

2120 * ( 0.675+ 0.57+ 0.5+ 0.67)+ 100+ 3045 100+

Revenue for June =2120*8+(2120/4)*5=19610

Profit for June= 19610-8067 =Rs.11543

4200
60

+(2120/4)*4.5= Rs. 8067

For December:
Step 4: Number of commuters on weekdays 2000 and weekend 1250
Assumptions 1: Total 40 numbers of buses travelling daily
Assumptions 2: 50 passengers on average for buses including mini bus
Assumptions 3: Male commuters : 200 for Age group (0-25),1200 for Age group (25-60),
100 for Age group (60+),Females :500 ....on weekdays
Assumption 4: Male commuters : 150 for Age group (0-25),600 for Age group (25-60),
100 for Age group (60+),Females :400 ....on weekend
Assumption 5: 6 Day working as only most people travel to Medinipur to Govt. Offices
Assumption 6: Only 8% of Age group (0-25) and 20% of Age group (25-60) and 10% of Age group
(60+)
And 5% of of women by tea
So Total number of cups of tea sold at the bus-stand in
month=24*(200*0.08+1200*0.2+100*0.1+500*0.05)+(52/12)*(
150*0.08+600*0.2+100*0.1+400*0.05)= 7446 cups
Assumption 7: There are only two competitiors for selling tea at bus stand and both share market for
selling tea equally so Ramesh sells 3723 cups of tea monthly.
Total time gas cylinder used in December=15*3723/6=9307 minutes

Cost Calculation for December:

9307

3723 * ( 0.675+ 0.57+ 0.5+ 0.67)+ 100+ 3045 100+

Revenue for December =3723*8+(3723/4)*5= Rs.34437

Profit for December= 34437-14039=Rs.20398

4200
60

+(3723/4)*4.5= Rs. 14039