Future Cost sheet of starting a new business of brownies with break even and cost sheet of three years. Project done by students.

1. Brownies Basket
ZaranaJoshi –69 Kiranbala Lakhmania –93 JasvinderNotra –115
KaranOshan –116 Hemika Parekh–119
Relish to your heart’s delight!

2. Brownies Basket
Relish to your heart’s delight!
When you are feeling stressed
and about to breakdown,
just remember STRESSED is just
DESSERTS spelled backwards!
It’s a piece of brownie!

3. Who are we?
• Name: Brownies Basket
• Ownership Status: Sole proprietorship
• Date of Incorporation: 1st April 2014
• Product: Home made brownies
• Area of Operation: Mumbai region
• Functioning: Order based only
• Marketing Strategy: Tastings, word of mouth &

4. Our key drivers
• Vision:
To spread the word and build up the customer base to as many as
possible. It is word-of-mouth publicity that is being relied upon by the
group to drive any food business. We plan to target and spread the
word to as many people as possible so that our customer list keeps
increasing. “we want our brownies to be bought and not sold”
• Mission:
To provide fresh high-quality home made brownies to our clients and
grow business by focusing on building long term relationships with our
clients, vendors and other business partners.

5. What we offer?
Our Products:
• Almond Brownie
• Chocolate Brownie
• Coffee Brownie
• Ferrero Rocher Brownie
• Nutella Brownie
Our Services:
• Basket of love
• Free delivery

6. We supply to…
• Homes
• Cafeterias
• Caterers
• Clubs
• Restaurants

7. Assumptions
• Quantity sold of each type of brownie is same for the
first year.
• Depreciation charged on fixed assets is 10%
calculated using WDV method.
• ¾ and ¼ of the orders placed for each type of
brownie would be for 1kg. and 500 gm. respectively
• Electricity charge Rs. 5 per unit.

8. The Cost Accounting Worksheet…

9. Cost Sheet For The Period 2013-14 & 2014-15
Particulars 2013-14 2014-15 2015-16
cost/unit total cost % increase/decreasecost/unit total cost % increase/decrease Total Cost
direct material
Opening stock 0 0 0 0
Purchases 2960959 12 3318960 14 3796306 purchases 2014
less: Closing Stock 0 0 0 CP for 1 kg of Brownies 314
Direct materials consumed 2960959 3318960 3796306 CP for 1 kg Coffee Brownies 359
add: Direct wages 60000 10 66000 109 138000 CP for 1 kg of nutella Brownies 374
Direct expenses 0 0 0 CP for 1 kg of Ferrero Rocher Brownies 467
Prime cost 3020959 12 3384960 3934306 CP for 1 kg of almond Brownies 362
units 4383 kgs
Add: Factory overheads Sales for 1st year
Indirect Material 0 0 0 1st month 1500
Indirect Wages 0 0 0 2-3months 7200
Rent (Factory) 0 0 0 3-6months 16200
Lighting and heating 0 0 0 last 6 months 54000
Power and fuel 0 0 0 Total 78900
Repairs and maintainance 1000 50 1500 33 2000
Cleaning 0 0 0
Drawing office expenses 0 0 0
Depreciation on epuipments 5537 -10 4983 -10 4485
Insurance 0 0 0
Factory manager salary 0 0 0
Factory cost/Work cost 3027496 12 3391443 3940791
Add: office and administration overheads
Rent 0 0 0
Salaries 0 0 0
Lighting and heating 58022 10 63652 8 68725
Insurance 0 0 0
Cleaning 0 0 0
Telephone and postage 12000 20 14400 25 18000
Printing and Stationary 5000 10 5500 4 5700
Depreciation on equipment and buildings 0 0 0
Consultancy services 10000 0 10000 0 10000
Legal expenses 0 0 0
Audit fees 0 0 0
Bank charges 0 0 0
Cost of Production 3112518 12 3484995 4043216
Add: Selling and Distribution expenses
Showroom rent 0 0 0
Lighting and heating 0 0 0
Salesman Salary 60000 110 126000 7 135000
Commission 0 0 0
Travelling expenses of salesman 22800 10 25000 9 27300
Advertising 0 0 0
Packaging 78900 14 90000 11 100000
Postage 0 0 0
Depriciation on delivery van 27500 -10 24750 -10 22275
Debt Collection expenses 0 0 0
Carriagefreight Outward 0 0 0
Sample and other free gifts 210643 0 0
Cost of research and experiments 0 0 0
Cost of Sales 3512361 3750745 4327791
Add: Net Profit 353739 374255 428209
9 9
Sales 3866100 4125000 4756000
78900 90000 100000
Sales 2013-14 2014-15 2015-16
Units Rate Total Units Rate Total Units Rate Total
Brownies 15780 35 552300 30000 35 1050000 35000 40 1400000
Coffee Brownies 15780 40 631200 20000 40 800000 25000 42 1050000
Nutella Brownies 15780 60 946800 15000 60 900000 10000 62 620000
Ferrero Rocher Brownies 15780 70 1104600 10000 70 700000 12000 73 876000
Almond Brownies 15780 40 631200 15000 45 675000 18000 45 810000
Total 78900 3866100 90000 4125000 100000 4756000

10. Ingredients and costing
Basic Components Optional components
Ingredients Qty Unit Priceper Unit 2014 Total Price2014 % increase Priceper Unit 2015 Total Price2015 % increase Priceper Unit 2016 Total Price2016 Intergients Qty Unit
Priceper Unit
2014
Total Price
2014 Priceper Unit 2015 Total Price2015 Priceper Unit 2016 Total Price2016
butter 145 gm 0.344 49.88 4.651162791 0.36 52.2 2.777777778 0.37 53.65 coffee 25 gm 1.78 44.5 1.8 45 1.82 45.5
sugar 250 gm 0.037 9.25 4.054054054 0.0385 9.625 3.896103896 0.04 10 nutella 100 gm 0.6 60 0.657 65.7 0.6714 67.14
chocolate 65 gm 0.67 43.55 4.47761194 0.7 45.5 4.285714286 0.73 47.45 Ferrero Rocher 6 units 25.5 153 29.16 174.96 29.53 177.18
vanlia extract 15 ml 1.2 18 4.166666667 1.25 18.75 8 1.35 20.25 almond 50 gm 0.95 47.5 0.955 47.75 0.97 48.5
eggs 2 units 4.8 9.6 4.166666667 5 10 0 5 10
Maida 175 gm 0.032 5.6 6.25 0.034 5.95 2.941176471 0.035 6.125
wallnuts 75 gm 1.19 89.25 0 1.19 89.25 2.941176471 1.225 91.875
cocca powder 175 gm 0.5 87.5 0 0.5 87.5 3.4 0.517 90.475
Baking powder 15 gm 0.11 1.65 0 0.11 1.65 4.545454545 0.115 1.725
Water 75 ml 0 0 0
992 Free Samples
2014 2015 2016 Type Qty Cost/unit Total cost
CP for 1 kg of Brownies 314.28 320.425 331.55 Brownies 250 314.28 78570
CP for 1 kg Coffee Brownies 358.78 365.425 377.05 Coffee Brownies 150 358.78 53817
CP for 1 kg of nutella Brownies 374.28 386.125 398.69 Nutella Brownies 50 374.28 18714
CP for 1 kg of Ferrero Rocher Brownies 467.28 495.385 508.73 Ferrero Rocher Brownies 50 467.28 23364
CP for 1 kg of almond Brownies 361.78 368.175 380.05 Almond Brownies 100 361.78 36178
Total 210643
Wages
Employees 14-15 15-16 16-17
Delivery Boy 60000 66000 69000 Product Prices
Factory
cost/Wo
rk cost Helper 60000 66000 138000 2014 Qty Priceper unit 2015 Priceper unit 2016 Priceper unit
Marketing personal - 60000 66000 Sugar 37 1000 0.037 38.5 0.0385 40 0.04
Add: office and administration overheads 120000 192000 273000 Maida 32 1000 0.032 34 0.034 35 0.035
Cocoa Powder 150 300 0.5 150 0.5 155 0.516666667
Chocolate 100 150 0.666666667 105 0.7 110 0.733333333
Butter 172 500 0.344 180 0.36 185 0.37
Milkmaid 95 400 0.2375 100 0.25 105 0.2625
Egg 4.83 1 4.83 5 5 5 5
Walnuts 238 200 1.19 238 1.19 245 1.225
fixed assets unit cost per unit cost Wattage Wattage Per Kg in KWh Cost of electicity Milk 62 1000 0.062 64 0.064 68 0.068
Oven 2 10152 20304 2000 1 5 Vanilla Essence 24 20 1.2 25 1.25 27 1.35
Egg Beater 1 1399 1399 175 0.0145 0.0725 Coffee 890 500 1.78 900 1.8 910 1.82
Baking Trays 4 1569 6276 nutella 209 350 0.597142857 230 0.657142857 235 0.671428571
Delivery Van 1 275000 275000 1400
Fridge 1 27390 27390 Ferrero Rocher 612 24 25.5 700 29.16666667 710 29.58333333
Almonds 950 1000 0.95 955 0.955 970 0.97
Total Fixed
Cost 330369 cost per kg 5.0725 0 Baking powder 110 1000 0.11 110 0.11 115 0.115
Fridge Monthy Costs 1500 1500
Depreciation
Fixed Assets 2013-14 2014-15 2015-16
Oven 2030.4 1827.36 1644.624
Egg Beater 139.9 125.91 113.319
Baking Trays 627.6 564.84 508.356
Fridge 2739 2465.1 2218.59
Total 5536.9 4983.21 4484.889
Delivery Van 27500 24750 22275

11. Calculation of break even point
2013-14 2014-15 2015-16
In Rupees Units In Rupees Units In Rupees Units
Sales 3866100 78900 4125000 90000 4756000 100000
less: variable cost 3162681 40 3545612 39 4112331 41
Contribution 703419 9 579388 6 643669 6
Fixed Cost
Telephone Charges 6000 6000 6000
Salaries 60000 126000 135000
Consultancy Services 10000 10000 10000
Lighting and heating 18000 18000 18000
Fixed Assets 330369 0 0
Total 424369 160000 169000
Total Cost 3587050 45 3705612 4281331
P.V. Ratio 18 14 14
B.E.P 23576 47152 11429 26667 12071 28167

12. Break even chart
FIRST YEAR
Sales Volume Analysis
Units sold per period 0 10000 20000 30000 40000 50000 60000 70000 80000 90000 100000
Sales price per unit 49 49 49 49 49 49 49 49 49 49 49
Fixed costs per period 424369 424369 424369 424369 424369 424369 424369 424369 424369 424369 424369
Variable Costs 0 400000 800000 1200000 1600000 2000000 2400000 2800000 3200000 3600000 4000000
Total Costs 424369 824369 1224369 1624369 2024369 2424369 2824369 3224369 3624369 4024369 4424369 Units Sold per period 78900
Total Sales 0 490000 980000 1470000 1960000 2450000 2940000 3430000 3920000 4410000 4900000
Net Profit (loss) -424369 -334369 -244369 -154369 -64369 25631 115631 205631 295631 385631 475631
Here we have sales as 3866100 and the breakeven point is at 3587050
0
1000000
2000000
3000000
4000000
5000000
6000000
Fixed costs per period
Total Costs
Total Sales

13. Break even chart
SECOND YEAR
Units sold per period 0 10000 20000 30000 40000 50000 60000 70000 80000 90000 100000 26667
Sales price per unit 45 45 45 45 45 45 45 45 45 45 45 45
cost should be 44.9,
hence 45
Fixed costs per period 160000 160000 160000 160000 160000 160000 160000 160000 160000 160000 160000 160000
Variable Costs 0 390000 780000 1170000 1560000 1950000 2340000 2730000 3120000 3510000 3900000 1040013
Total Costs 160000 550000 940000 1330000 1720000 2110000 2500000 2890000 3280000 3670000 4060000 1200013
Total Sales 0 450000 900000 1350000 1800000 2250000 2700000 3150000 3600000 4050000 4500000 1200015
Net Profit (loss) -160000 -100000 -40000 20000 80000 140000 200000 260000 320000 380000 440000 2
Here the breakeven point cost is 3705612 and our sales revenue is 4125000.
Hence we have earned a profit of Rs 419388
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
4500000
5000000
0 50000 100000 150000
Fixed costs per period
Total Costs
Total Sales

14. Break even chartTHIRD YEAR
Units sold per period 0 10000 20000 30000 40000 50000 60000 70000 80000 90000 100000 28167
Sales price per unit 47 47 47 47 47 47 47 47 47 47 47 47
Fixed costs per period 169000 169000 169000 169000 169000 169000 169000 169000 169000 169000 169000 169000
Cost
comes to
46.99
hence 47
Variable Costs 0 410000 820000 1230000 1640000 2050000 2460000 2870000 3280000 3690000 4100000 1154847
Total Costs 169000 579000 989000 1399000 1809000 2219000 2629000 3039000 3449000 3859000 4269000 1323847
Total Sales 0 470000 940000 1410000 1880000 2350000 2820000 3290000 3760000 4230000 4700000 1323849
Net Profit (loss) -169000 -109000 -49000 11000 71000 131000 191000 251000 311000 371000 431000 2
Here the breakeven comes to 4281331 and the sales
cost is coming upto 4256000.
Hence we have recovered all our money that is
invested but our profit margin is still very less
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
4500000
5000000
0 20000 40000 60000 80000 100000 120000
Fixed costs per period
Total Costs
Total Sales

15. Our advisor
Ms. Anju Kumar
• Owner of Shokolade
• “Brownie’s & More” At their best
• Incorporated on 14th Feb. 2007
• : Shokolade- Brownies
• “Stay focused on that big idea till
you Crack It”

16. Pleasehavea deliciousbrownie…
Thank you!