Data for the year 1963-64 Statement showing product wise profitability

Production data Rs ('000) Per 10,000 L of Raw Milk @ Re 0.6953 per litre)
1 FA Milk 35519 Prod 1 Prod 2 Qty 1
2 Std Milk 1362 1 FA Milk Butter 9874
3 Baby Food 1839 2 FA Milk Ghee 9874
4 Butter 1385 3 SMP Butter 813
5 WMP 569 4 SMP Ghee 813
6 SMP 224 5 WMP Butter 1179
7 Ghee 398 6 WMP Ghee 1179
8 Cheese 81 7 Baby Food Butter 1307
41377 8 Baby Food Ghee 1307
9 Cheese Butter 1094
Milk recd from societies ('0,000) 6043 10 Cheese Ghee 1094
11 Std Milk Butter 8675
12 Std Milk Ghee 8675

Statement showing allocation of OH Cost

Milk Productio Depreciati Advertisin
Products n Units Labour Cost on g Cost Total OH Ab rate
('00,000) ('00,000) ('00,000) ('00,000) ('00,000)
FA Milk 334 1 2.1 3.1 0.01
Butter 13.9 3 2.2 1.75 6.95 0.5
Baby Food 18.4 3 0.9 5.2 9.1 0.49
Cheese 0.8073 2 0.9 1.75 4.65 5.76 0.807292
SMP 2.2 2 2 0.25
WMP 5.7 0.25
9 8.1 8.7 25.8

Production Capacities Standardization of Units

Daily (kg) Std units Raw Milk 10000 L
Butter 10000 10 Butter 1000 Kg
Ghee 2500 2.5 Ghee 1000 Kg
SMP 6000 7.38 FA Milk 9874 L
WMP 6000 5.09 1.45 SMP 813 Kg
Baby Food 7000 5.36 WMP 1179 Kg 1.45
Cheese 2000 1.83 Baby food 1307 Kg
Cheese 1094 Kg
Month wise Milk Collection Std milk 8675 L
00,000 litreDays Daily avg
April 48.1 30 1.603333
May 40.5 31 1.306452
June 31.3 30 1.043333
July 32.8 31 1.058065
August 41.8 31 1.348387
September 46.3 30 1.543333
October 53 31 1.709677
November 60.7 30 2.023333
December 67.7 31 2.183871
January 65 31 2.096774
February 58.3 28 2.082143
March 59.1 31 1.906452
604.6

Summer May-Aug 123 11.9

Winter Sep-Apr 242 19.0
 profitability
6953 per litre)
Qty 2 RM Cost ProcessingOH 1 OH 2 Total OH Total Cost Rev 1 Rev 2 Tot Rev
62 6953 500 0.01 0.5 130 7583 7553 403 7956
48 6953 551 0.01 0.66 130 7634 7553 399 7952
992 6953 1285 0.25 0.5 699 8937 2334 6448 8782
756 6953 1301 0.25 0.66 699 8953 2334 6275 8609
606 6953 2000 0.25 0.5 598 9551 5876 3987 9863
448 6953 2000 0.25 0.66 598 9551 5876 3822 9698
696 6953 4478 0.49 0.5 988 12419 7772 4524 12296
529 6953 4494 0.49 0.66 988 12435 7772 4308 12080
560 6953 3864 5.76 0.5 6581 17398 9010 3640 12650
426 6953 3983 5.76 0.66 6581 17517 9010 3536 12546
681 6953 1052 0.01 0.5 427 8432 4338 4426 8764
519 6953 1060 0.01 0.66 427 8440 4338 4307 8645
Profit Per litre Contributi Eq units
373 0.037 503 0.062
318 0.032 448 0.048
-155 -0.016 544 0.992
-344 -0.034 355 0.756
312 0.031 910 0.606
147 0.015 745 0.448
-123 -0.012 865 0.696
-355 -0.036 633 0.529
-4748 -0.475 1833 0.56
-4971 -0.497 1610 0.426
332 0.033 759 0.681
205 0.021 632 0.519
Combo 1 2 3 4 5 6 7 8 9
Units 7.6 0 0 0 2.47 0 0 0 1.83
Cont pu 503 448 544 355 910 745 865 633 1833
FA Milk 7.6 0
Butter 0.4712 0 0 0 1.49682 0 0 0 1.0248
Ghee 0 0 0 0
SMP 0 0 3.5815 0
Baby food 0 0
Cheese 1.83
Std Milk
Raw Milk 7.6 0 0 0 2.47 0 0 0 1.83

Situation 1: No Obligation to supply FA milk

During May to August
Units 0 0 0 0 5.089655 0 4.980345 0 1.83

FA Milk 0 0 Contribution per day 12293.97

Butter 0 0 No of Days 123
Ghee 0 0 Total Contribution 15.12159
SMP 0 0
Baby food 0 0 Raw Milk Used per da 11.9
Cheese 0 0
WMP 0 0

During September to April

Units 3.903467 0 0 0 5.089655 0 5.36 0 1.83

FA Milk 0 0 Contribution per day 16723.83

Butter 0 0 No of Days 242
Ghee 0 0 Total Contribution 40.47167
SMP 0 0
Baby food 0 0 Raw Milk Used per da 19
Cheese 0 0
WMP 0 0

Combo 1 2 3 4 5 6 7 8 9
Units 3.899129 0 0 0 5.089655 0 1.081216 0 1.83
Cont pu 503 448 544 355 910 745 865 633 1833
FA Milk 3.899129 0
Butter 0.241746 0 0 0 3.084331 0 0.752526 0 1.0248
Ghee 0 0 0 0
SMP 0 0 7.38 0
Baby food 1.081216 0
Cheese 1.83
Std Milk
Raw Milk 3.899129 0 0 0 5.089655 0 1.081216 0 1.83

Combo 1 2 3 4 5 6 7 8 9
Units 3.899129 0 0 0 5.089655 0 5.36 0 1.83
Cont pu 503 448 544 355 910 745 865 633 1833
FA Milk 3.899129 0
Butter 0.241746 0 0 0 3.084331 0 3.73056 0 1.0248
Ghee 0 0 0 0
SMP 0 0 7.38 0
Baby food 5.36 0
Cheese 1.83
Std Milk
Raw Milk 3.899129 0 0 0 5.089655 0 5.36 0 1.83

Combo 1 2 3 4 5 6 7 8 9
Units 7.6 0 0 0 5.089655 0 4.480345 0 1.83
Cont pu 503 448 544 355 910 745 865 633 1833
FA Milk 7.6 0
Butter 0.4712 0 0 0 3.084331 0 3.11832 0 1.0248
Ghee 0 0 0 0
SMP 0 0 7.38 0
Baby food 4.480345 0
Cheese 1.83
Std Milk
Raw Milk 7.6 0 0 0 5.089655 0 4.480345 0 1.83

Combo 1 2 3 4 5 6 7 8 9
Units 7.6 0 0 0 2.47 0 0 0 1.83
Cont pu 503 448 544 355 910 745 865 633 1833
FA Milk 7.6 0
Butter 0.4712 0 0 0 1.49682 0 0 0 1.0248
Ghee 0 0 0 0
SMP 0 0 3.5815 0
Baby food 0 0
Cheese 1.83
Std Milk
Raw Milk 7.6 0 0 0 2.47 0 0 0 1.83
10 11 12 Constraints
0 0 0
1610 759 632 9424.89
7.6 7.6 7.6
0 0 0 2.99282 10 Capacity 7.6
0 0 0 2.5 Capacity
3.5815 7.38 Capacity
0 5.36 Capacity
0 1.83 1.83 Capacity
0 0 0
0 0 0 11.9 11.9 summer

0 0 0

0 2.816878 0

10 11 12 Constraints
0 0 0
1610 759 632 10882.49
3.899129 3.899129 3.899129
0 0 0 5.103403 10 Capacity
0 0 0 2.5 Capacity
7.38 7.38 Capacity
 1.081216 5.36 Capacity
0 1.83 1.83 Capacity
0 0 0
0 0 0 11.9 11.9 summer

10 11 12 Constraints
0 2.817273 0
1610 759 632 16721.95
3.899129 3.899129 3.899129
0 1.918563 0 10 10 Capacity
0 0 0 2.5 Capacity
7.38 7.38 Capacity
5.36 5.36 Capacity
0 1.83 1.83 Capacity
2.817273 0 2.817273
0 2.817273 0 18.99606 19 winter

10 11 12 Constraints
0 0 0
1610 759 632 15684.27
7.6 7.6 7.6
0 0 0 7.698651 10 Capacity
0 0 0 2.5 Capacity
7.38 7.38 Capacity
4.480345 5.36 Capacity
0 1.83 1.83 Capacity
0 0 0
0 0 0 19 19 winter

10 11 12 Constraints
0 0 0
1610 759 632 9424.89
7.6 7.6 7.6
0 0 0 2.99282 10 Capacity
0 0 0 2.5 Capacity
3.5815 7.38 Capacity
0 5.36 Capacity
0 1.83 1.83 Capacity
0 0 0
0 0 0 11.9 11.9 summer
Joint Product Units SP pu Revenue Cost beyond split off Diff Joint Cost Full cost
A 200 10 2000 600 1400 712 1312
B 300 20 6000 1500 4500 2288 3788
8000 2100 5900 3000

By Product Units SP pu Revenue Cost beyond split off Diff Joint Cost Full cost
A 200 10 2000 600 1400 1400 2000
B 300 20 6000 1500 4500 1600 3100
8000 2100 5900 3000

Sales 8000 6000

COGS 5100 3100
Gross Profit 2900 2900
GP 0.3625 0.483333
Cost pu Profit Profit pu
6.56 688 3.44
12.62667 2212 7.373333
2900

Cost pu Profit Profit pu

10 0 0
10.33333 2900 9.666667
2900