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PRESENTATION ON

PROFIT FUNCTIONOF FRUITS

BY:

(1).MANORAMA SINGH

(2).PRABHAKAR MISHRA

(3).ANIL PATHAK(4).GULSHAN SHARMA

(5).EKTA SINGH

(6).CHANDNI MANIAR

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Transportation cost from GANDHIDHAM to ADIPUR

(Place Gandhidham- Khanna Market)APPLES- 5 boxes(1 box=5 kgs)

ORANGES-3 boxes(1 box=5 kgs)

Total 40 kgs (Rs.10/box)

Total cost(5*10)+(3*10)=Rs. 80/day

Plastic bags in bulk:-

(the vendor uses 13*16 size of plastic bag

for sale of 1kg of Apples/Oranges )Rs.6000/month

Rs. 200/day

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WEIGHING MACHINE :- (The name of the

manufacturer of the machine is

Maganlal Madhavji & Co.)

Rs.3200

(here we assuming that pay backperiod of thismachine is only 6 months. So per month its cost is

Rs.535 & per day its cost is Rs.18)

So, TOTAL FIXED COST PER DAY IS Rs.588/-

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APPLES :- Rs.3600 - 60 Kg.

So Rs.60/kg

ORANGES:- Rs.4200 - 40 Kg

So Rs.105/kg

VARIABLE COSTTO THE

FRUIT VENDOR

We are assuming that the cost at which the vendor is

purchasing APPLES and ORANGES are Rs.60/- and Rs.105/-

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COST FUNCTION :- 353 + 60(x)

(Where x is no ofkgs sold)

REVENUE FUNCTION :- 80(x)

( As selling price of Apples is Rs.80/kg.)

APPLES

Genarally there are two types of APPLES :

(1) HIMACHALI

(2)KASHMIRI

We have choosen Himachali Apples for derivingprofit function and its cost is Rs.80/-

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PROFIT FUNCTION :- R(X) C(X)

:- 80(X) 64 60(X)

:- 20(X) 64

:- 20(60) -64

:- Rs. 1136

BREAKEVEN POINT :- 45.8 i.e 46 kgs

(TOTAL COST / SELLING PRICE)

(

fixed cost +variable cost/selling price)

(64+3600/80

PROFIT FUNCTION :- R(X) C(X)

:- 80(X) 353 60(X)

:- 20(X) 353

:- 20(60) -353

:- Rs. 847

BREAKEVEN POINT :- 49.41 i.e 49 kgs

(TOTAL COST / SELLING PRICE)

(fixed cost +variable cost/selling price)

(353+3600/80)

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COST FUNCTION :- 235+ 105(x)

(Where x is no ofkgs sold)

REVENUE FUNCTION :- 120(x)

( As selling price of Oranges is Rs.120/kg.)

ORANGES

As generally the ORANGES are bought from Nagpur

but due to off season the vendors are selling oranges

of South Africa and accordingly we are deriving its

profit

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PROFIT FUNCTION :- R(X) C(X):- 120(X) 235 105(X)

:- 15(X) 235

:- 15(40) 235

:- Rs. 365

BREAKEVEN POINT:- 36.96 i.e 37 kgs

(TOTAL COST / SELLING PRICE)

(fixed cost + variable cost / selling price)( 235+4200/120)

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