Submitted By: The Producers
Tutti Frutti Isl.
Quantitative techniques &Methods
TUTTI FRUTTI ISLAMABAD7
PRICING DETAILS, CONCERNS, AND CALCULATIONS:-8
Yogurt Making Procedure8
Following is the Direct Material cost structure.8
Direct Labor Structure (fixed)8
BREAK EVEN ANALYSIS10
Method Applied For the Calculations Of Break-Even:11
THE SURVEY (quantitative aspect)21
CURRENT INCOME STATEMENT23
INCOME STATEMENT AFTER PRICE RAISE TILL PKR30 (FAVORABLE)23
Applying the relevant revenue relevant costs concept, we can see that the relevant revenues are increasing by PKR 117343.149 ----- benefit (OI before change in price- OI after change in price)23
INCOME STATEMENT AFTER PRICE RAISE TILL PKR30 (UNFAVORABLE)23
Applying the relevant revenue relevant costs concept, we see that the relevant revenues are decreasing by PKR 425431.0224
Qualitative analysis of the pricing problem25
We would like thank Mr. Tahir Yasin Malik and sakina younas for their help and support for this project. Without their cooperation, this project would not have been possible. We would like to thank each other as a group for sharing the responsibilities and work that this project required. Most importantly all of us would like to thank you ma’am for your positive response to the initial idea of this project. Moreover everything in this project is based on what you have taught us during the course of this semester for which all of us are highly obliged to you. We hope that our project meets your expectations.
Group Leader: Maeedah Babar Chishti
Group Members: Aymun Mussadaq
Maeedah Babar Chishti
Haider Amir Ali
Bayram Waleed Khan Niazi
The aim of this Project is to; via thorough marketing research and cost analysis, come to ideal decisions to problems faced by Tutti Frutti Islamabad. Currently an issue of pricing exists. Currently, Tutti Frutti Islamabad has a uniform price of PKR 28 per ounce of yogurt for all flavors. The norm of the food industry is that out of the total stated price figure, 30% should be that of costs and 70% of profit before taxes. Tutti Frutti’s stated price on the other hand comprises of 40% costs and 60% of profits. This, comprised with the obvious objective of maximizing profit has led to the management considering an increase in the price of per ounce yogurt at Tutti Frutti Islamabad. This Project will analyze the effect on operating income that such a decision will make and decide whether or not to increase its prices. We have done that by a decision analysis. To analyze the current and future possible financial situations, we have conducted a complete CVP analysis of Tutti Frutti Islamabad. We have also conducted a market survey to analyze customer needs and expectations and the effect that a possible price raise or another outlet will have on...