BEN ANALYSIS

Ben1
In this we have calculated the total manufacturing costs which include Variable
Manufacturing, Marketing costs along with the Fixed Costs. Fixed Costs include
Fixed Manufacturing, Marketing, General Administration and Advertisement
Costs. All are calculated as per the Question.
Total costs = Variable Costs + Fixed Costs
Total Income = Total sales of Knives + Total sales of Can Openers
Profit before Tax (PBT) = Total Income Total Costs
Tax = 50% of Profit
Profit After Tax (PAT) = PBT Tax

Ben2
In this, we have calculated the optimal profit from the sales of Knives and Can
Openers. Gain is maximum when 200000 are spent each on Knife and Opener for
advertisement ( At a given cost of 10 and 15 rs respectively).
Also most optimal price comes out to be 9 and 13 for knife and opener
respectively.