Economic Cost and Profit of Beximco

2017-2018 2016-2017 2016

TOTAL REVENUE 17,716,716,855.00 15,508,776,972.00 12,965,506,873.00
EXPLICIT COST 1,200,728,065.00 1,284,074,244.00 1,623,196,449.00
IMPLICIT COST (15% of Annual 608,334,667.50 608,334,667.50 579,366,351.00
Opportunity cost of Equity Capital)
TOTAL ECONOMIC COST 1,809,062,732.50 1,892,408,911.50 2,202,562,800.00
ECONOMIC PROFIT 15,907,654,122.50 13,616,368,060.50 10,762,944,073.00

Economic Cost and Profit of SQUARE (BDT million)

2017-2018 2016-2017 2015-2016

TOTAL REVENUE 17,293.00 15,440.00 13,786.00
EXPLICIT COST 6,684.23 5,892.09 5,194.86
IMPLICIT COST (15% of Annual 1,106.09 1,028.92 935.38
Opportunity cost of Equity Capital)
TOTAL ECONOMIC COST 7,790.32 6,921.01 6,130.24
ECONOMIC PROFIT 9,502.68 8,518.99 7,655.76

Valuation of Beximco and SQUARE

Value of Beximco 15,907.65 11,253.20 8,086.36

46,538.85

Value of SQUARE 9,502.78 7,040.49 5,751.89

30,619.90
 2014 2013
11,206,885,677.00 10,490,699,094.00
1,743,677,945.00 1,582,469,711.00

551,777,478.00 525,502,360.50

2,295,455,423.00 2,107,972,071.50
8,911,430,254.00 8,382,727,022.50

2014-2015 2013-2014
12,134.00 10,847.00
4,533.48 4,162.89

831.45 723.00

5,364.93 4,885.89
6,769.07 5,961.11

6,086.63 5,205.01

4,623.37 3,701.38
 Chapter-1
Managers, Profits and Markets

Economic Cost and Profit of Beximco

2013-2014 2014-2015
TOTAL REVENUE 10,847.00 12,134.00
EXPLICIT COST 4,162.89 4,533.48
IMPLICIT COST (15% of Annual 723.00 831.45
Opportunity cost of Equity Capital)
TOTAL ECONOMIC COST 4,885.89 5,364.93
ECONOMIC PROFIT 5,961.11 6,769.07

Valuation of Beximco and SQUARE

Value of Beximco = π

5,205.01 6,086.63
46,538.85
2015-2016 2016-2017 2017-2018
13,786.00 15,440.00 17,293.00
5,194.86 5,892.09 6,684.23

935.38 1,028.92 1,106.09

6,130.24 6,921.01 7,790.32

7,655.76 8,518.99 9,502.68

8,086.36 11,253.20 15,907.65

 π π π π π
+ + + +
1+r (1+r)^2 (1+r)^3 (1+r)^4 (1+r)^5 5,205.01
= 5,205.01
+ 6,086.63 + 8,086.36 + 11,253.20
+ 15,907.65
= 46,538.85
6,086.63 8,086.36 11,253.20 15,907.65
 Equilibrium Price
Yearly Quantity demanded and supplied at different price level (BDT mn): 4,500
4,000
Year 2013 2014 2016 2017 20183,500
Demand 1,894 1,936 1,976 2,075 2,099
3,000
Price 2,611 2,872 3,169 3,620 4,084
2,500
Supply 1,634 1,748 1,823 2,232 2,401
2,000

1,500

1,000

500

0
1,500 1,600 1,700 1,800 1,900 2,000
Dema nd

Demand Curve
2,150
Shift in Demand
2,100
9,000
2,050
8,000
2,000
7,000
6,000 1,950
5,000 1,900
4,000
1,850
3,000
1,800
2,000
1,000 1,750
2012 2013 2014 2015 2016 2017 2018
-
1 2 3 4
Shift5 of Supply Curve
Dema nd Pri ce 10,000Demand
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
1 2 3 4
Price Suppl y Suppl y
1,000
0
1 2 3 4
Price Suppl y Suppl y
Equilibrium Price and Quantity

1,800 1,900 2,000 2,100 2,200 2,300 2,400 2,500

Dema nd Suppl y

ve
Supply Curve
3,000

2,500

2,000

1,500

1,000

500
2017 2018 2019
rve -
2012 2013 2014 2015 2016 2017 2018 2019

4 5
Suppl y
 4 5
Suppl y
Year 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018
Total Benefit 10,847.00 12,134.00 13,786.00 15,440.00 17,293.00
Total Epense 2,881.00 3,291.00 3,713.00 4,158.00 4,782.00
Net Benefit 7,966.00 8,843.00 10,073.00 11,282.00 12,511.00

1,000.00
Year 2014-2015 2015-2016 2016-2017 2017-2018
900.00
Change in Net Benefit 877.00 1,230.00 1,209.00 1,229.00
800.00
Change in Total Benefit 1,287.00 1,652.00 1,654.00 1,853.00
Change in Total Expense 410.00 422.00 445.00 624.00 700.00

Change in Activity 479.04 765.31 790.78 869.31 600.00

500.00

Year 2014-2015 2015-2016 2016-2017 2017-2018 400.00

Marginal Benefit (MB) 1.83 1.61 1.53 1.41 300.00

Marginal Cost (MC) 0.86 0.55 0.56 0.72
200.00

100.00

Marginals give slops of total

2.00
1.80
1.60
1.40 1,400.00
1.20
1.00 1,200.00
0.80
0.60 1,000.00
0.40
0.20 800.00
-
1 Marginal Cost (MC) 600.00
2 Marginal Benefit (MB)
3 400.00
4
Margi nal Benefit (MB) Margi nal Cost (MC) 200.00

-
1
 1,000.00

900.00

800.00

700.00

600.00

500.00

400.00

300.00

200.00

100.00

Net Benefit Curve

1,400.00

1,200.00

1,000.00

800.00

600.00

400.00

200.00

-
1 2 3 4
Change i n Net Benefit Cha nge i n Activi ty
 Amount Taxable
Particulars Tax exempted (B)
(A) (C = A-B)
3 Basic pay 506,364.00 506,364.00
4 Special pay
Arrear pay (if not included in
5
taxable income earlier)
6 Dearness allowance
7 House rent allowance 84,000.00 84,000.00
8 Medical allowance
9 Conveyance allowance 24,000.00 24,000.00
10 Festival Allowance 42,198.00 42,198.00
11 Allowance for support staff
12 Leave allowance 60,000.00 60,000.00
13 Honorarium/ Reward/Fee
14 Overtime allowance 19,187.00 19,187.00
15 Bonus / Ex-gratia
16 Other allowances
Employer’s contribution to a
17 50,640.00 50,640.00
recognized provident fund
Interest accrued on a
18 1,567.00 1,567.00
recognized provident fund
Deemed income for transport
19
facility
Deemed income for free
20 furnished/ unfurnished
accommodation
21 Other, if any (give detail)
22 Total 787,956.00 168,000.00 619,956.00
 BDT(million)
Output Total Cost Average Total Cost Marginal Cost
658 2,881.00 4.38 -
690 3,291.00 4.77 12.81
704 3,713.00 5.27 30.14
712 4,158.00 5.84 55.63
724 4,782.00 6.60 52.00cost, Average cost and Short-r
Total
6,000.00

5,000.00

4,000.00

3,000.00

2,000.00

1,000.00

-
0.5 1 1.5 2 2.5 3 3.
 410.00 32 12.81
422.00 14 30.14
445.00 8 55.63
624.00 12 52.00 cost
Average cost and Short-run Marginal

.5 2 2.5 3 3.5 4 4.5 5 5.5