COST SHEET

OF HEAVEN
CHOCLATES
SUBMITTED TO: PROF. RAVI AGARWAL
SUBMITTED BY : GROUP 10
TANISHA AGARWAL PGFB1956
NISHA PGFB1932
SHOBHIT KATRAULIYA PGFB1948
GAURAV ANAND PGFB1927
MANAS KARTIKEY PGFB1957
 HEAVEN CHOCOLATES-
INTRODUCTION
HEAVEN CHOCLATES is a brand of milk chocolate that is manufactured by
Taste group private Ltd, Every product in the Heaven chocolates line is made with
exclusively milk chocolate.

Heaven chocolates is trying to be at the top of the Indian Chocolate Market not
only because of its most delicious, best tasting chocolate but also because of its
memorable communication. And capture maximum amount of market shares.

PRODUCTS SOLD BY TASTE PVT. LTD.

CHOCOLAT COOKI NATURAL CRISPY
ES ES CHOCLATES CHOCOLAT
E BALLS

BISCUITS GIFT YOGA CUSTOMIZE

PACKS BARS/ D
ORGANIC CHOCOLAT
BARS ES

CHOCOLAT FESTIV FLAVOURE HAZELNUTS

E RAISINS E D MILK CHOCOLAT
AND PACKS CHOCOLAT ES
ALMONDS ES

COMPETITORS ANALYSIS:
NESTLE HERSHEYS

CADBURY AMUL

SAPPHIRE TOBLERONE

FERRERO ROCHER KINDER JOY

Major competitor for our heaven chocolates is Cadbury India. It is a second
largest brand of chocolates which is having its headquarter in London and it
operates in more than 50 countries. Cadbury believes that advertisement plays
major role in their sale as because which they follow heavy advertisements so
that can continuously attract new customers and as well as retain the existing
customers. Cadbury cover 70 % of the market share in all over India, which is
highest brand share when counted or measured globally.

POPULAR CHOCLATES UNDER CADBURY:

 DAIRY MILK

 SILK

 PERK

 FIVE STAR

 BOURNVILLE

 CELEBRATIONS

 ECLAIRS

 GEMS

 NUTTIES

DETAILS OF HEAVEN CHOCOLATES COSTS:

The following are the details of 4,50,000 units of HEAVEN CHOCOLATE: -

 RAW MATERIAL REQUIRED FOR 4,50,000 UNITS: -

 S.NO MATERIAL AMOUNT
. (in Rs.)
1. Sugar 3,00,000
2. Cocoa Butter 3,00,000 DIRECT LABOUR
3. Cocoa Solids 3,20,000 INVOLVES THE
4. Peanuts 2,00,000 FOLLOWING
5. Milk Solids 2,00,000 EXPENSES: -
6. Chocolate Coated 4,00,000
S.NORaisin PARTICULARS HOURS SPENT AMOUNT
7. . Almonds 3,00,000 (in Rs.)
8. 1. Honey Set Up 05 5,00,000 20,000
9. 2. Boston Baked Bean
Mixer 120 15,0000 1,80,000
10 3. Salt Dough Roller 75 25,000 1,80,000
11. 4. ApricotCookie Cutter 25 75,000 20,000
5. Baker 50 1,00,000
6. Timer 10 20,000
7. Decorator 55 80,000
8. Quality control 10 1,00,000

 Carriage Inward amounts to Rs. 2,42,500

 Carriage Outward amounts to Rs. 20,000
 MANUFACTURING COSTS ARE AS FOLLOWS: -

S.NO FIXED AMOUNT

. (in Rs.)
1. Depreciation on Plant & Machinery 2,57,500
2. Rent 1,50,000
3. Power & Consumable Stores 1,50,000
4. Factory Insurance 1,50,000
5. Supervisor’s Salary 50,000
 S.NO VARIABLE AMOUNT PER UNIT
. (in Rs.)
1. Electricity Charges 0.11/U
2. Power & Consumable Stores 0.22/U
3. Running Expenses of Machine 0.33/U

 Office & Staff Salary amounts to Rs. 10,00,000

 Office Rent amounts to Rs.80,000
 Expenses incurred on:-
Office Computer Rs. 1,20,000

Furniture Rs. 3,00,000

Telephone Rs. 10,000
 Depreciation ( office furniture ) to Rs. 50,000.
 Rent, Rates & Taxes amounts to Rs. 30,000.
 Salaries to Administrative Staff amounts to Rs. 3,70,000.
 SELLING AND DISTRIBUTION EXPENSES ARE AS FOLLOWS:-

S.NO PARTICULARS AMOUNT

. (in Rs.)
1. Advertisement 4,00,000
2. Petrol 1,00,000
3. Delivering Vehicles 2,50,200
4. Maintenance of Delivering Vehicles 49,800
5. Packing Rates 50,000
6. Bad Debts Written Off 1,00,000
The Company charges Net Profit at the Rate of 20%
COST SHEET
Output=4,50,000 chocolates
PARTICULARS TOTAL COST
COST PER
UNIT
RAW MATERIALS
Sugar = 3,00,000
Coco Butter = 3,00,000
Coco Solids = 3,20,000
Peanuts = 2,00,000 Milk 23,20,000 5.16
Solid ingredients
=2,00,000
Raisin chocolates = 4,00,000
Almonds used =3,00,000
Salt used = 25,000
Apricot used = 75,000
Honey used = 50,000
Baked Beans used = 1,50,000
DIRECT LABOUR
Set up = 20,000
Mixer = 1,80,000
Dough roller = 1,80,000 7,00,000 1.56
Cookie cutter = 20,000
Baker = 1,00,000
Timer = 20,000
Decorator = 80,000
Quality control = 1,00,000
Carriage on Material = 2,42,500 2,42,500 0.53
PRIME COST 32,62,500 7.25
FACTORY EXPENSES
A. FIXED
Depreciation on Plant & Machinery = 2,57,500
Rent = 1,50,000
Power & Consumable Stores = 1,50,000
Factory Insurance = 1,50,000
Supervisor’s Salary = 50,000
10,57,500 2.35
B. VARIABLE
Electricity Charges = 50,000
Power & Consumable Stores = 1,00,000
Running Expenses of Machine = 1,50,000
FACTORY COST 43,20,000 9.60
OFFICE AND ADMINISTRATION EXPENSES: -
Office Staff Salary = 10,00,000
Rent = 80,000
Computer = 1,20,000
Furniture = 3,00,000
Telephone = 10,000 1980000 4.4
Carriage Outward = 20,000
Depreciation (Furniture) = 50,000 Salaries
to Administrative staff = 3,70,000
Rent, Rates & Taxes = 30,000
COST OR PRODUCTION/COST OF GOODS SOLD 63,00,000 14.00
SELLING & DISTRIBUTION EXPENSES
Advertisement (Print & By Local T.V. Channels) = 4,00,000
Petrol = 1,00,000
Delivery Vehicles = 2,50,000 9,49,800 2.11
Maintenance of Delivery Vehicles = 49,800
Packing Rates = 50,000
Bad Debts Written Off = 1,00,000
COST OF SALES 72,00,000 16.00
NET PROFIT (20% ON SELLING PRICE) 18,00,000 04.00
SALES 90,00,000 20.00
COST SHEET ANALYSIS:
 The company is producing 450000 units of chocolates
at per unit cost of 5.16 Rs, total cost of 2320000
incurred. Total sales are of Rs. 9000000 (20 Rs/
chocolate) which contributed Rs. 1800000 of profit
which is 4Rs. /chocolates.
 Since the heaven chocolates are making profits above
the percentage of cost. Which tells that price increase
will not have to much effect on the profit since there is
profit margin.
 Profits will help the company to diversify and expand
its business over time.
CONCLUSION:
COST VOLUME PROFITABILITY ANALYSIS

 CONTRIBUTION:
SALES- VARIBALE COST:
=9000000-300000
=8700000
 CONTRIBUTION TO SALES RATIO:
SALE- VARIABLE COST/ SALES
= 9000000-300000/9000000
=0.96
 BREAK EVEN POINT IN RUPEES
FIXED COST/ CONRIBUTION SALES RATIO
=757500/0.96
= 789062 Rs.
THANKYOU