COST VOLUME PROFIT ANALYSISINDUSTRIAL PROFILE . The first organization attempt in providing safe milk to customers was made by military dairy forms. With objectives of supplying milk to the British troops in India. The next attempt with the organized dairying was in Bombay city by the British government, to improve the city milk supply. In fact Mr.R.A. Pepperell, the secretary of the milk marketing board of England, in a press meeting in 1944, stated that the sewage of London this necessitated the Government intervention in the year 1945, which led establishment of the Bombay milk scheme and a private firm owned by Mr. Polson, located at Anand 400 Kms North Of Bombay, to supply milk to the scheme. To opening up the attractive market of Bombay, to the milk producers of Kaira District, provided the stimulus to increase their production shortly after India became independent, the Government of Bombay realized that the prevailing system of milk contractors, traded and the private Polson dairy were the farmers of Kaira district. Co-operative milk union (Popularly known as AMUL) started with a modest collection of 250 liters of milk per day in 1948, with village milk producer’s society. AMUL has grown to a size where it today handles some 8, 50,000 liters and more of milk a day in the peak season. The Kaira’s co-operative society has got the membership of some 36, 00,000 farmers, and pays nearly Rs.100 crores to its farmer members for the milk supplied by them. The co-operative society owns a dairy, which processes dairy products in competition with private industry under the brand name “AMUL” The leading national brand name in dairy products surprising through it may seem, it was the Kaira’s cooperative which disproved the myth spread by the multinational that baby food and condensed milk could not be made in India and therefore had to be imported, taking this as a challenge and making both products successfully from buffalo milk. In the above structure the role of the Government is to supervise, to guide, to encourage, disciplining the co-operative societies when the need arises. The Anand pattern combines the power of the people with professional management in a vertical integrated structure, which establishes a direct link between the producers and customers. This co-operative structured in Kaira was in other districts of Gujarat and all the district unions so framed were federated in to the Gujarat co-operative milk marketing federation. The entire structure is owned and operated by farmer elected members, who in turn employ professionals to manage the day today functions of the co-operatives. The structure enables a blend of modern technology with traditional diary framing without causing any financial burden on the state exchequer. Today, the Gujarat Co-operative milk marketing federation has a total membership of over 22 lakhs farmers, with a turnover of about Rs.270 crores a year. When the Prime minister, Sir.Lal Bahadur shastri visited Kaira District in1964, he compared the AMUL co-operative with the other government milk Schemes set up all over the country and decided that the (AMUL) “Anand Pattern” should be replicated nationally. Thus, the national Diary Development Board (NDDB) was set up in 1965 with a mandate to adopt “Anand” Pattern throughout India. It was however T.JOHN INSTITUTE OF TECHNOLOGY Page 1 COST VOLUME PROFIT ANALYSIS found that every state (except Gujarat) had a Diary development corporation managing over 100 government milk schemes located in town and cities, all of the which were running under loss. There was resistance to the creation of farmer owned organization and the states were not willing to commit funds for dairy development for the creation of “Anand”. Mean while, in the latter half of the 60’s; surplus conserved milk solids were piling up in most of the European Countries. The NDDB saw this opportunity and used it to go generated funds to finance replication of “Anand”. The programmed of NDDB formulated to meet this objective was called Operation Flood and the Government of Indian approved the Programmed in 1969. Thus, Operation Flood was launched in1970 with funds generated from the sale of gifted milk powder and butter oil from the world flood programmed to replicate “Anand” pattern in the country. The Programmed has continued to grow, with funds generated from gifted dairy commodities received from the European Economic Community and funds provided by World Bank. The progress of Operation Flood is illustrated in exhibit (1 to 8). The Anand pattern has now been implicated in milk sheds covering 242 districts. Nearly 150 lakhs milk producers are members of these co-operatives and received sum of over Rs.850 crores as payment for the sale of milk to their co-operative during 1986-87. Most of these products are small and marginal farmers or landless laborers, 21% have no land, another 66% are small marginal farmers having less than four hectares of land, and over 70% of the families have only two milk animals or less. The establishment of a co-operative structure as a ready and regularly buyers of milk has generally improved prices to farmers. For example, the average price paid by the Delhi Mother Dairy to the state co-operative federations has increased from Rs.230 to Rs 4015 per Kg. of mixed milk (6.05%fat, 9.90% SNF) between the year 1980 and 1986 (as it has not been possible for the government to permit an increase in the sale price of milk) With the expansion of Operation Flood and increase coverage by the co-operatives, the private trade is now required to compete with the co-operative and has therefore been prevent from unduly exploiting the milk producer. The collective interest of the state co-operative structure has been established by the farmers and is an alternative to the exploitative trading marketing system. It has been established that the Anand pattern can be replicated outside Gujarat and survive in from competition. The co-operative have also established their credibility in the production and marketing of a range of milk products under their respective brand names in different packaging to suit the consumers. Realized the benefits of the Anand pattern, the Government has asked NDDB to extend the co-operative system to restructure production and marketing systems of many other primary products as oil seeds, fruit, vegetables, fisheries distribution etc. T.JOHN INSTITUTE OF TECHNOLOGY Page 2 COST VOLUME PROFIT ANALYSIS ANAND PATTERN MILK CO-OPERATIVES: The basic unit in the Anand pattern is the village milk product co-operatives, a voluntary association of milk collection. All the village milk cooperatives in a district are the members of their district cooperative milk union. Every producer’s, milk is tested and paid for, on the basis of the quality of the milk. Usually the morning milk is paid for in the evening and the evening milk is paid for the next morning. The village societies also market nutritionally balanced compound clarified produced by the cattle feed plant owned and operated by the district level unions. The union also operates the network of veterinary services to provide routine and emergency services for animal health care. The village societies elect the board of directors of centralized facilities of the union. This is the responsible for the board of the day to day activities. A manager Director, who report to the elected chairman and the Board of Directors, professionally manages each union. The dairy owned by a union, usually has milk-drying plant to convert the seasonal surplus into milk powder and other conserved products. With the help of the drying plant, the union is able to ensure that milk products get 80% to90% of the lean season price even in the flues season. This has enabled the farmers to get 20% to 40% higher prices than what would have got if they were not a part of the co-operative systems. The middlemen have usually been paying only 50% to 60% of the lean season price in the flush season. Bulk of the out-of-pocket expenditure on the milk production is the purchase of cattle feed concentrates like oil cake, cottonseeds etc., owned and operated by the co-operative is able to provide naturally balanced cattle feed at price 20% to 30% over the price of the traditional feeds. The milk collection from the village is usually sent to the co-operative dairy through trucks hired by the co-operative dairy, tries to market the bulk of its liquid milk and converts the surplus milk into products. Professional managers employed by the co-operative ensure, that they get the best return for their produce. DAIRY INDUSTRY IN KARNATAKA: In June 1974, an integrated project was launched in Karnataka to restructured and reconcile the dairy industry on the co-operative principles and laid foundation for new World Bank aided dairy development projects in 1975. Initially the project covered 8 southern districts of Karnataka dairy Development Corporation was set up to implement the project. The multi level activities were set up with Dairy coT.JOHN INSTITUTE OF TECHNOLOGY Page 3 COST VOLUME PROFIT ANALYSIS operative societies at gross root levels, milk union at the middle level as an apex body vested with the dairy development activities continued under operation Flood-II, the activities were extended to cover the entire state except coastal Taluks of Uttar Karnataka district. The process of dairy development continued in the second phase from 1984, KMF come in to existence. In May 1984, as a successor to KDDC after the closure of operation Flood-II dairy development activities continued under Flood-II with 700 professionals. While the IDC is Government of India Company, the NDDB is a registered society. NDDB, apart from providing services for the implementation of operation Flood also provides the applied research and development support to the projects. In Karnataka on June 4th, 1975 four Milk Unions were started in Bangalore, Mysore, Tumkur and Hassan, Karnataka Dairy Development Corporation (KDDC) got re-named as Karnataka Milk Federation and the Mysore Corporative Milk Producers Societies Union Ltd in to “Mysore-Chamarajanagar District Coop Milk Producers Societies Union Ltd “ MARKET SHARE OF NANDINI MILK: The market share of Nandini milk is shown as follows: 1. Nandini Milk- 75% (MYMUL Market Share in Mysore Dist. Is 53%) 2. Private milk- 25% Though it was registered on 30th March 1977, it was handed over to the Union in 1987 Dairy development in Mysore District: The Mysore dairy, which was taken up by Mysore milk union on 1st June 1987, has an installed capacity of 60 TLPS. This was extended to 100 TLPS. It was future extended up to 100 TLPD during operation flood, Second in Hansur with 30TLPD and recently in Kollegal was established with 30 TLPD capacities. KMF/MYMUL Ltd., as structured on co-operative principle consists of three Levels namely, 1. Village level- Diary Co-operative Society. 2. District level- Milk Union of Districts. 3. State level – The Federation of Milk union. The structure of MYMUL is functional in nature. The managing committee takes all the decisions, which consists of managing director and functional Department heads. T.JOHN INSTITUTE OF TECHNOLOGY Page 4 The philosophy of Dairy Development is to eliminate middle men and organize institutions to be owned managed by the Milk Producers themselves. preventing migration to urban area. 6.42 Lakhs. 8. T. the building is worth Rs. 1. Of the other side to achieve a Socio Economic Revolution within the state. Inspiring rural people for Milk production as an added occupation along with agriculture. Location: Mysore Dairy is located within the city limit of Mysore at Siddhartha Layout on T. To provide mobile veterinary and emergency services for animals of rural areas. Providing hygienic Milk to urban consumers.51.COST VOLUME PROFIT ANALYSIS When we look at the organization chart. To build village level Institutions in Co-operative sector to manage the dairy activities.25 acres of land. The complex network of Co-Operative Organization should build a bridge between millions of consumers and milk producers. To ensure Milk Production for self-employment at village level. 2. Providing self-employment for rural folk and making them stable by providing financial assistance. we find that the structure is in line with various heads of the functional department reporting to the chairman and managing director.JOHN INSTITUTE OF TECHNOLOGY Page 5 . providing whole some milk at lowest possible price to Urban Consumers. 9. The Mysore dairy has been built in the area of 10. Objectives: Karnataka Milk Federation is a co –operative apex in the body in the state of the Karnataka for the representing Dairy Farmers Organization and also implementing Diary development activities the following objectives. at the same time . 4. Providing assured and remunerative market for the entire Milk Producers. Government of Karnataka has taken golden step to make the farmers involved in dairy development activities and increased their income level and standard of living.Narasipura Road. 3. Providing regular market for milk producers throughout the year. Achieving Economies of scale to ensure maximum return to the Milk producers. a few km from heart of the city. 5. introducing cash economy and opportunity for regular income. 7. the activities on development were taken to in the year 1975. one NDDB representative. pattern’ with main objective of socio-economic reformation of the rural areas through dairying as main subsidiary occupation.10 share and Re. Emergency visits to treat the animals on a nominal fee to be collected from producers. Among members 8 Directors are elected. to each of them. having the jurisdiction extended to the entire Mysore district and five taluks of Mandy district. The president of the DMU is elected and he is the supreme authority. UNDER the World Bank aided Karnataka dairy development projects. Cross breeding facility through artificial insemination service. District Level Milk Union: (DMU) The federation is named as “Karnataka Milk Federation”. The union undertook the work of organization of milk cooperatives in AMUL. was established on 23-11-1976. Milk Producers Co-Operative Societies: (MPCS) These MPCS are in every village consisting of 50 and above members with the Rs.1 advance. where board of directors constitute of a chairman and one MD of the union. A. Or ST) candidates and another for a lady candidate. Once in three years union election is held to select a chairman. Out of these 8 directors one is elected to be a president. in that two seats are reserved (For SC. Technical guidance and supply of root slips or seeds for fodder cultivation the member of the co-op societies. one representative from registrar of co-operative society and one from the department of Animal husbandry Main functions of the union: To provide remunerative market for the milk produced by the rural farmers. First aid facilities the society level. 1. one KMF representative.JOHN INSTITUTE OF TECHNOLOGY . BACKGROUND AND INCEPTION OF THE COMPANY.COST VOLUME PROFIT ANALYSIS COMPANY PROFILE. In Mysore District 803 societies are registered and properly functioning. 2. The Mysore co-op milk producers societies union ltd. Page 6 T. along with curd.. NATURE OF THE BUSINESS CARRIED: The nature of Mysore milk union is that procuring the milk from society and that milk is bring through tankers for various centers. MISSION. The unions process the milk & market in urban area through by various agents. & also by giving training to farmers 7 also induction program. VISION. Those. T. Supply of balance 3 cattle feed to the farmers of the co-op societies at subsidiary rates. C. This is the nature & business carried of the MYMUL. ghee. The union providing service to milk producers technical inputs like veterinary services seeds. QUALITY POLICY: MYMUL is committed to producers welfare through customers delight my adopting continuous improvement and hygienic milk and milk products. “To create unity of workers for providing a better service to consumers of milk. Intensive co-op program’s to the women members of the dairy co-op societies through development program.JOHN INSTITUTE OF TECHNOLOGY Page 7 . fodders etc. to help in social and economic development of the country and get reliability in world class market”. MISSION: MYMUL is committed to provide maximum possible price for milk supplied by its members & provide necessary inputs to enhance milk production while ensuring economics viability of the union & it’s also committed to provide quality milk operative dairy industry in the country. The union providing various products to market like toned milk. which are near & convenient to various societies. AND QUALITY POLICY: VISION: The vision of the MYMUL has to provide good quality milk to the consumers at reasonable price.COST VOLUME PROFIT ANALYSIS Effective supervision of extension services through field execution on the union. B. Peda also providing. 5%SNF. homogeneous standard milk. NANDINI FULL CREAM MILK: T. And march. PRODUCT/ SERVICE PROFILE: Production is considered to be crucial in any industrial organization. Masala majjige. flavouredmilk. The product dairy purchases milk from co-operative milk societies. In turn these societies directly collect milk from villages and supply the same to the dairy.. Available in 500 ML and 1 liter packs. And ends in February .COST VOLUME PROFIT ANALYSIS VALUES: HONESTY DISCIPLINE QUALITY COST CONTROL CO-OPERATION TEAM SPIRIT MUTUAL RESPECT SERVICE MOTIVE A. PRODUCT PROFILE: MYMUL milk union manufactures the following products. containing 3. Peda. ghee.JOHN INSTITUTE OF TECHNOLOGY Page 8 . and ends in September. Lassi. NANDINI TONED MILK: Karnataka’s most favorite milk Nandini toned milk. Mysore pak. which usually starts from other. The dairy is having FLUSH SEASON. double toned milk. standardized milk. full creamed milk. The lean season of the dairy starts usually in the month of March.1% fat and 8. April. Production is the process by which raw materials and inputs are converted in to finished goods.. curds. Toned milk. NANDINI CURD: Nandini curd made from pure milk. Available in 250 and 500 Grams. which is homogenized and pasteurized consistent rights thought. T. Available in 50 Grams for pack containing 10 pieces each. it is thick and delicious. Rich creamer and tasted milk.5% SNF available in 500 ml pack. and 100 mls sachets and 15 kgs tins. SWEET LASSI: Sterilized flavored milk nutritious and healthy milk and on all season wholesome drink available in different flavor. Available in 500 ml packs. NANDINI STANDARDISED MILK: This milk containing 4. Available in 200.6 % fat and 9% SNF available in 500 ml. Nandini Mysore pak is made from high quality Bengal gram.6 % fat and 8. Store at room temperature. delicious flavor. Giving you all goodness of homemade curds. NANDINI DOUBLE TONED MILK: Nandini double toned milk contains 1. it gives more cup of tea or coffee and is easily digestible. ideal for preparing homemade sweets and savories. Available in 200 Grams and 50 Grams sachet. Available in 500 ml packs.1 fat and 9 SNF. Nandini ghee and cane sugar.JOHN INSTITUTE OF TECHNOLOGY Page 9 . store at room temperature approximately 7 days. MYSORE PAK: Fresh and tasty. NANDINI GHEE: This is made from pure butter. Nandini homogenized toned milk is pure milk. BADAM BURFI: This is delicious treat for the family made from pure milk.COST VOLUME PROFIT ANALYSIS Full milk contains 6. Made from pure milk. NANDINI PEDA: This is made from delicious treat for the family. It is delicious way to relish a sweet movement. 500. hygienically manufactured and packed in a special pack to remain goodness of pure ghee. OWNERSHIP PATTERN: MYMUL is a co-operative institution. Farmers are the real owners as well as the shareholders of the co-operative union.Chamarajanagar district co-operative milk producers union limited registered under the Karnataka co-operative act has been commissioned in the year 1980. Farmers are entitles to receive the dividends from the co-operative union. Kollegal and Chamarajanagar towns. Pattern of Co-operative sector in Milk Industry: Primary Union District Union State federation D. tankers from chilling centers and tankers from bulk milk coolers is as follows: In cans from village dairy co-operatives 54500 Kg’s In tankers from chilling centers 112500 Kg’s In tankers from bulk milk coolers 51000Kg’s C. The dairy receives milk in cans with temperature of 27C to 30c from village co-operatives located in the district of Mysore and Chamarajanagar district. AREA OF OPERATION: Mysore. These bulk milk coolers have been installed to maintain the quality of raw milk and also to reduce the intake of energy intensives raw materials. And in tanker with temperature of 5 C to 6 C from the three chilling centers located at Hunsur. Also the dairy receives milk with temperature of 5 C to 6 C in tankers from 27 Bulk Milk Coolers.COST VOLUME PROFIT ANALYSIS B. As on date the per day quantity of milk received through cans directly from dairy co-operatives. COMPETITOR INFORMATION: The major competitors of the MYMUL are as follows: Jersey Dodla Arogya Fresh Milk Loose vendors Gomatha Thirumala Page 10 T.JOHN INSTITUTE OF TECHNOLOGY . Loose Milk Sale: Market share is next to Nandini. road ride teashops and sweet neat stalls. Commission ranges from 80-95 paise. Flexible distribution . Majority of the milk is heavily adulterated and no uniform quality. Sale in union jurisdiction 140 TLPD.JOHN INSTITUTE OF TECHNOLOGY Page 11 .income group segments. Flexible payment system. Loose milk from crude and local cattle reamers. Packing is attractive with multicolour pricing on sachets. Sale in union jurisdiction 18TLPD (30TLPD in city). Major consumers are low.retailers or anyone willing to sell. Consumer perceives that milk is good for making curds. Channel members are playing critical role on boosting the sales. Sales from 50ml and above. T. Available of raw material at cheaper rate. Quality perception – thick and long shelf life.COST VOLUME PROFIT ANALYSIS Swastika Dodla: Plant at Nellore. Payment – cash and carry or which collecting empty on return trip. Returns will be accepted. EG. Masala majjige packing machine Flavored milk packing machine Ghee packing machine T. MILK PROCUREMENT: Milk collection from farmers. They have procurement group contract vehicles.COST VOLUME PROFIT ANALYSIS E. TRANSPORTATION. PACKING: Milk packing machine Curd packing machine Lassi. INFRASTRUCTURE FACILITIES: Infrastructure facilities in MYMUL are in this way. Dairy co-operative society Bulk milk products.JOHN INSTITUTE OF TECHNOLOGY Page 12 . Milk tanker MILK PROCESSING: Raw milk reception dock Cream separators Milk pastures Stored tanks Electronic milk tester and milk scan. JOHN INSTITUTE OF TECHNOLOGY Page 13 .COST VOLUME PROFIT ANALYSIS ENGINEERING: Reformation equipments Boiler equipment Effluent treatment plants Electronic generation MARKETING: Distribution network Agents Parlors Depots Franchise DISTRIBUTION TRANSPORT: Trucks Auto Mobile Van T. COST VOLUME PROFIT ANALYSIS A.JOHN INSTITUTE OF TECHNOLOGY Page 14 . packaging & storing of paste sized Milk: Receiving Milk from Farmers Grading Sampling Weighting Testing Pre-Heating (35® C) Filtering / Clarification Cooling (5°C or below) Standardization Bottling /Packing Storage (5° C or below) T. Work Flow model: Manufacturing. Marketing: Allotting more agencies opening new parlors and depot. good animal husbandry. 3. making processing and packing facilities at chilling centers. college children consumers and farmers.COST VOLUME PROFIT ANALYSIS B. conducting various comparative like children drawing Competition. installation of new equipment. then arranging dairy visits for school. clean milk production. Future growth & prospectus: 1. training on various production enhancement activities. Dairy plant: Expansion of processing capacity. A. Achievements and Awards: MYMUL has not got many awards from the state and the central government: ISO certificate 9001-2008 2nd prize from national energy conservation board 2003-2005 1st prize from state energy conservation board 1st prize in grand maintain during Rajasthasava. T. 2.JOHN INSTITUTE OF TECHNOLOGY Page 15 . Milk procurement enhance activities like introduction of new societies formation of BMCs (bulk milk coolers) providing. shared value T. theory and practice seem to support each other in the study of management. system.COST VOLUME PROFIT ANALYSIS McKensy’s 7S Frame work: The respected consulted from Mekinsey and company developed the 7’s framework for management analysis. staff. Thus. structure. skill. The outstanding feature of the 7s medal is the mckinsey consults in their studies of many companies have tasted it extensively.JOHN INSTITUTE OF TECHNOLOGY Page 16 . and style. The 7’s are strategy. 2. Providing assured and remunerative marked for all the milk produced by the farmer member. The authority and responsibility are properly assigned and therefore the rest is carried on smoothly.JOHN INSTITUTE OF TECHNOLOGY Page 17 . It is the determination of purpose and the basic long objective of an enterprise and the adoption of course of action and allocation of resource necessary to achieve these aims. To build village level institution in co-operative sector. The grouping of activities and people into departments. 1. It is also trying to improve its position in the mind of customers by following up and attending any complaints in more compensated way and union is trying to give their best. Preventing migration to urban areas. The main aim is to supply fresh pure quality of milk with reasonable price. T. 2. Providing hygienic milk to urban customers. The MYMUL strategy is to make available balanced cattle food at reasonable price to improve the productivity of milk.COST VOLUME PROFIT ANALYSIS 1. Organization struct6ure in MYMUL can be viewed as established pattern of relationship among the components of organization. STRATEGY: Strategy is a systematic action and allocations of achieve company aims. STRUCTURE: Organization structure and authority and responsibility relationship are including in the structure. 4. The organization structure in MYMUL well planned the function and organizations are brought to the notice of the employee. and training the personnel for best utilization of skills. OBJECTIVES OF MYMUL: Is to provide pure and fresh milk and to provide marketing facilities to the rural milk producers at reasonable price. 3. The chart in MYMUL shows the position. INPUT In MYMUL an organization chart is used which is graphical portrayed of various position in the organization and of the formal authority relationship among them.MGR.PLANT DY.ON WING DY.MGR.MGR. It provides to understand what is his position in the structure is. T.COST VOLUME PROFIT ANALYSIS Organization diagram. MGR PROCURE MENT DY. PROCUREMENT DEPUTY MGR.JOHN INSTITUTE OF TECHNOLOGY Page 18 .QUALITY DY. BOARD DIRECTOR OF PRESIDENT MANAGING DIRECTOR ADMIN OFFICERS FINANCEOFFICERS MANAGER DAIRY MARKETING HEAD MANAGER PROCUREMENT MIS OFFICER DISTRIBUTI . officer. Duties and responsibilities of P &I: T. Different department of this organization: Procurement and input department: Department structure Manager p& 1 Deputy Manager (AGA) Deputy Manager (procurement) Deputy Manager (Feed fodders Assistant Manager Asst. 2. 6. Extension officer.COST VOLUME PROFIT ANALYSIS MYMUL HAVE THE VARIOUS DEPARTMENTS: 1. Asst. Administrative department.JOHN INSTITUTE OF TECHNOLOGY Page 19 . Manager Assist officer Assist Manager. Procurement department. Purchasing department. 4. Finance department. 5. Storage department. Marketing department. 3. 5. It should help the producers for making cattle insurance. Sale of cattle to the members. The technical in input programmed of the union mainly covers the following activities. milk production inputs etc. Top arrange for the dispatch of the union in time. In the union payment for the producers is given by the society once in week. Mediator facility to provide information and services to the members extended by the union such as fodder demonstration programme. 6.. The main function and responsibility of primary level dairy co-operative are…to purchase the milk offered by the members twice a day (morning and evening) 2. The milk is procured from the village in contract vehicles. Transport vehicle arrangements are the responsibility. Artificial insemination Feeds and fodder development Extensive services. 3. DCs supervision. T. Proper utilization of funds under govt. 3. 2. Members for development of DCs. 1. Providing input activities to milk producers through DCs at right time. 6. 2. Proper transportation of milk from DCs to dairy. 1. To make regular payment for the milk received on the basis of fat % arrived on testing. The manager of p& I is charge of their activities assisted by extension officer’s veterinary officers. artificial insemination and agriculture officers. training. 4. 4.COST VOLUME PROFIT ANALYSIS 1. 4. 5. Extension officers will be visiting once in month to DCs and supervise the accounts and they will guide the MC. which goes to the society at schedule time and gives empty cans for next collection and trunk sheets or details of previous collection and gets filled milk cans. 3.JOHN INSTITUTE OF TECHNOLOGY Page 20 . As the first step of this programmer starts with surrey of the villages by extension officers. scheme. Animal health care. T. The union of selling 117915 LPD to the consumers of Mysore. Managing director General Manager Marketing manager Marketing superintendent Marketing assistant Marketing can be considered as the heart of any production.COST VOLUME PROFIT ANALYSIS MARKETING DEPARTMENTS: The structure of marketing department of MYMUL is as follows. There is marketing section headed by marketing officers. Without marketing of manufactured products. because it acts as a link between consumers and producers. there is no value for that manufactured product. it is very necessary to achieve the organization objective .JOHN INSTITUTE OF TECHNOLOGY Page 21 . Under the control of deputy manager milk is being sold through distribution routes by appointing agents of other institution or at milk parlors. Therefore future of any organization involved in production of product lies in its marketing dept. Further. the Marketing section also attends to the complaints made by public regarding spoilage. The milk parlors located at Mysore. & Hansur have been given to the private traders to run under annual contracts as per terms and conditions of union. Finance mainly focuses on wealth maximization.JOHN INSTITUTE OF TECHNOLOGY Page 22 .COST VOLUME PROFIT ANALYSIS As per the indents given by the agents of other institution of parlors milk will be dispatched at scheduled time to the market in morning and evening sessions. and make arrangement for replacement after through verification. It mainly focuses minimizing the cost and maximizing the profit. ACCOUNTS DEPARTMENT: FINANCE is the lifeblood of any organization. T. breaking of rackets etc. All the aspects of accounting and monitoring of work of this division are carried out under the control of accounts officers. MANAGING DIRECTOR MANAGER (FINANCE) DEPUTY MANAGER (finance). Accounts departments also perform various disbursements of wages and salaries.COST VOLUME PROFIT ANALYSIS FINANCE DEPT. Manager (Finance /Accounts) it maintains subsidiary and trading accounts. It helps the control of accounts officers It helps the management to consider liability of project to generate adequate surplus not only to cover the department.(FINANCE) ACCOUNTS SUPDT. The book of accounts maintained by the accounts department in the office are purchase register books.JOHN INSTITUTE OF TECHNOLOGY Page 23 . ACCOUNTS OFFICER. T. STRUCTURE. The maintenance of investment records a supplying of all types of accounting and financial information to the management. Surviving to obtain a satisfactory internal rate of return in the finance management. Account Assistant Acct assit Acc assit Acct assit This is the key functional area of the union. ASST. This department is headed by Dy. MANAGER. The personnel manager manages the overall functions of the dept. MYMUL also procure the manual workers through contract basis on their piecework system. negotiates the terms of purchase. the head of the purchase department select the best source of supply. MANAGING DIRECTOR GENERAL MANAGER /DEPUTY MANAGER PERSONNEL ADMINISTRATOR. ADMINISTRATIVE DEPARTMENTS PERSONNEL/ADMINISTRATIVE DEPARTMENT. place orders.COST VOLUME PROFIT ANALYSIS PURCHASE AND STORES DEPARTMENTS: The main function of the purchase department is to conclude the purchase of material and stores. receives supply to materials together with invoices from suppliers and check them against the purchase orders and certifies the invoices for payments and performs such other tasks as are related to its function. The following are the functional areas of personnel management/administration in MYMUL. follows up orders. He is administering this dept. And also include purchase of dairy co-operative societies materials. stationeries and supplies etc. managing director and general manager/deputy manager. Personnel and administrative department of MYMUL is well equipped with qualified and experienced personnel manager. with the guidelines of the president. plant and machinery. T.JOHN INSTITUTE OF TECHNOLOGY Page 24 . SYSTEM. Staffing and employment. heads the administrative dept. Employee records.JOHN INSTITUTE OF TECHNOLOGY Page 25 . System refers to procedure and processes such as information system. provident fund etc. 3. T. Training and development. 2. The assistant managers who sees day –to-day affairs of the dept. to various employees working in the organization. Motivation and incentives 6. wage and salary administration. manufacturing processes. promotion providing salaries. Organizational planning and development. 3. budgeting and control processes. is mainly concerned with the recruitment. 4. Compensation.COST VOLUME PROFIT ANALYSIS 1. he is accountable for the affairs of the administrative dept. 5. Mysore pak. Peda.JOHN INSTITUTE OF TECHNOLOGY . Reception Processing section P/F machine Cream tank Page 26 T. Raw milk reception Standardization Chilling Storage of raw milk Cream Separation Homogenization Pasteurization Cold storage Packing Selling of milk Dispatch Apart from production and selling of milk MYMUL also producers’ products such as cream. Masala majjige. lassie. ghee. curd. flavored milk by use of following equipments.COST VOLUME PROFIT ANALYSIS FLOW CHART OF HANDLING MILK. butter. for maintenance of boilers who have capabilities to handle the functioning of work smoothly. which is reflected by the quality assurance test taken by the union during procurement of milk and also by the variety products produced by the union.E. the criteria would be B. Tech (dairy technology) and B. The union has good skilled human resource. Staff refers to people in the enterprise and their socialization in to organizational culture. Examples: For recruiting and selecting the manpower required by the production dept.COST VOLUME PROFIT ANALYSIS Boiler DG room and sub station Air compressor room Refrigeration Product section Workshop equipment. 4. which is very improvement in the achievement of organization. The MYMUL possesses variety in the procurement of milk and production of milk and milk products. STAFF: The people in the organization are very dedicated and towards the improvement of the organization. 5. The company has skilled manpower. STYLE: Style refers to the way the management behaves and collectively spends time to achieve organizational goal. T.JOHN INSTITUTE OF TECHNOLOGY Page 27 . The staff in MYMUL has good relationship with each other. The company is capable of processing milk fresh and pure will before the time schedule and other expectations of the customers. At present there are 250 workers working in MYMUL. 6. The company is satisfying the customers through its qualities milk and milk products. The skill levels of the workers are work oriented and they are specialized in their respective fieldwork. The staff is well qualified and suited for their respective jobs. The maximization number of staff approved is 302 workers for the union. Skills refer to the distinctive capabilities of an enterprise. They are satisfied with their work. SKILL. which is reflected by the non-stoppage of any work in MYMUL. Planning focuses on the future direction. Planning enables the organization to time its business with the environment and establish a profitable relationship with the environment. So. MYMUL also have future planning for marketing divisions as well as for marketing of products. Company also takes the valuable guidance and suggestions from the employees and customers. In MYMUL every employee is dedicated to the achievement of the organizational goals. when to do and who is to do it.COST VOLUME PROFIT ANALYSIS In MYMUL also have future planning for marketing divisions as well as for marketing of products? Dairy is moving towards attaining future plans. The company believes that the business success is combined effort of the employees and management. values and sense of purpose. planning provides unifying decisions making framework and facilities integration of efforts. SHARED VALUES: Shared value or super ordinate goals refers to a set of value and aspiration that goes beyond the conventional formal statement objective. Planning is simply a rational approach to accomplish an objective.JOHN INSTITUTE OF TECHNOLOGY Page 28 . FUTURE PLANNING OF MYMUL: Planning refers to deciding in advance what to do. 7. the shared value is an element. The employees work hard to see that good quality products are produces in the union. There are fundamental ideas around which business is built. T. management of MYMUL has provided some intimated figures for attaining goals and objectives in future. Dairy is moving towards attaining future plans. basis objectives tell the directions of growth. It bridges gap from where we are to where we want to go. which ensures the success of implementing the strategy. By this the company can know what the requirements of customers are. how to do. management of MYMUL has provided some intimated figures for attaining goals and objectives in future. 4. Well managed. 8. Good name in the market. Transportation vehicles. 3.JOHN INSTITUTE OF TECHNOLOGY Page 29 . 2. ISO 9001-2000 Certificate. 6. 7. T. Easy communication channel. SWOT ANALYSIS OF THE COMPANY STRENGTHS: 1.COST VOLUME PROFIT ANALYSIS 5. 815 milk producer’s co-operative societies. Milk producers elect their own administrative body. 5. Two lakhs farmer members. JOHN INSTITUTE OF TECHNOLOGY Page 30 . Different verities of milk for different categories of people. THREATS: 1. OPPORTUNITIES: 1. 2. Increased local loose milk sales. Wide spread operating areas. Workers inefficiency. Wide brand competition 2. 3. Tapping loose milk sales. Political interference 2. Good board.COST VOLUME PROFIT ANALYSIS WEAKNESSES: 1. T. 3. 699 242. T.627.184 2.627.615.133.506.190.998.705.13.030 Mar 10 (in rs) 2.829 2.211 26.430 3.51.982 130.971 80.205.821.730.JOHN INSTITUTE OF TECHNOLOGY Page 31 .529.182.600.941 5.638 1.348.346 82.43.30.059.411 16.738. Gross profit increased from 29.761 18.09.906. Net profit has been decreased from 5.846.858 30.974.277 164.51 crores in the year 2010-11.64.571 29.4 crores to 34 crores in the year 2010-11.417 1.COST VOLUME PROFIT ANALYSIS ANALYSIS OF FINANCIAL STATEMENT OF MYSORE CHAMARAJANAGAR DIST CO-OP MILK UNION Profit and loss account of Mysore Milk Union Mar 11 (in rs) TRADING ACCOUNT Sales Account Cost of Sales Opening Stock ADD: Purchases Account LESS: Closing Stock Direct Expenses GROSS PROFIT INCOME STATEMENT Indirect Incomes Indirect Expenses PROFIT BEFORE TAX LESS: Income Tax NET PROFIT 23.549 283.269.224.632 17.02.844.141 5.324 34.61 crores to 5.886 18.270 Source: annual report of Mysore Milk Union 2010-11 Interpretation: A sale has increased from 226 cores to 313crores in the year 2010-11.953.780.61.382.007 25. T.9 crores to 49. Current assets are increased from 26.COST VOLUME PROFIT ANALYSIS Balance sheet of MYMUL Particulars Sources of funds: Capital accounts Loans / liabilities Current liabilities Profit and loss account Total Application of fund: Fixed assets Investments Current assets Total 260587644 126371278 493604624 880563546 250159222 19619212 269301339 539079773 Amount (in rs) Mar11 385646834 152028450 226274343 116613919 880563546 Amount (in rs) Mar10 285606827 70278651 96235854 86958441 539079773 Interpretation: Capital account is increased from 28.5 crores to 38. Investment is increased from 1 crores to 12 crores in the year 2010-11.3 crores in the year 2010-11.5 crores in the year 2010-11.JOHN INSTITUTE OF TECHNOLOGY Page 32 . MYMUL. To define in short.COST VOLUME PROFIT ANALYSIS LEARNING EXPERIENCE: Just as an unknown frontier is looked upon with much anxiety.JOHN INSTITUTE OF TECHNOLOGY Page 33 . my experience at the MYMUL plant can be narrowed down to witnessing what was written about as the motto of MYMUL. so researcher has set afoot into the citadel of milk processing industry. At the end of a month’s training at the organization. that is witnessing how QUALITY EXCELLENCE IS REACHED FROM COWS TO CONSUMERS. T. researcher can safely say that he got acquainted with the minute details of the manner in which raw milk is processed and made available to all in need. However the concept itself is applicable to service enterprises such as banking. 8. At this breakeven point (BEP). Insurance and other financial service industries. Prices of production inputs (e. According to Horngren and Foster(1991).g. Revenue and costs are being compared over a single volume base (e. All cost can be divided in to their fixed and variable elements. 4. The analysis covers a single product or a constant sales mix. Cost Volume Profit analysis expands the use of information provided by the Break Even analysis. The assumptions underlying CVP analysis are: The behavior of the both costs and revenues is linear throughout the relevant range of activity. 9.a company will experience no income or loss. Cost Volume Profit analysis or Break Even analysis as it is often commonly called. Cost can be classified accurately as either fixed or variable. Changes in activity are the T. 7. Efficiency and productivity are constant. This BEP can be an initial examination that precedes more detailed CVP analysis.COST VOLUME PROFIT ANALYSIS PART B INTRODUCTION COST VOLUME PROFIT ANALYSIS Cost Volume Profit is a planning tool which is extremely useful in predicting sales and profit levels given a certain cost structure. 2. Total variable cost are proportional to volume.JOHN INSTITUTE OF TECHNOLOGY Page 34 . 3. This assumption precludes the concept of volume discounts on either purchase material or sales.g. Total fixed cost remain constant. Volume is not only drivers of cost. Selling price are constant. The behavior of costs revenue is linear . furniture). materials) are constant. Traditionally cost volume profit analysis has been applied largely to manufacturing enterprises which have a which have tangible product base (e. A critical part of CVP analysis is the point where the total revenues equal to costs (both fixed and variable costs).g. 6. 10. 1. Cost Volume Profit analysis the same basic assumption as in breakeven analysis. units). is largely in the manufacturing sector. THE BASIC COST VOLUME PROFIT MODEL As mentioned earlier. the basic Cost Volume Profit model has the following underlying assumptions. 5. It indicates the level of sales at which costs and revenues are in equilibrium point isd commonly known as the breakeven point. Marginal costing is the ascertainment of marginal cost and the effect on profit of changes in volume or type of output by differentiating between fixed cost and variable cost. The breakeven analysis is the most widely used form of CVP analysis. A critical part of Cost Volume Profit analysis is the point where the total revenues equal to the total costs (both fixed and variable costs). Marginal Cost and Marginal Costing The term Marginal Cost is the ascertain the amount of at any given volume if output by which aggregate costs are changed if the volume of output is increased or decreased by one unit. It provides information to management in most précis manner it is an effective and report system.JOHN INSTITUTE OF TECHNOLOGY Page 35 . useful for elementary instruction and for short-com decisions. The break even analysis establishes a relationship between revenue and cost with respect to volume. Cost Volume Profit analysis is an analytical technique for studying the relationship between volume. It is a simplified model. Cost Volume Profit analysis expands the use of information provided by breakeven analysis. variable costs prices and profits. It is a variable cost of one unit of a product or a service i. The breakeven point may be defined as that point of sales volume at which total revenue is equal to total cost. fixed costs. The concept of T. a cost which would be avoided if that unit was produced or provided. When a company sells more than one type of products the sales mix (the ratio of each product to total sales) will remain constant.e. All produced are sole (there is no ending finished goods inventory). The components of Cost Volume Profit analysis are Level or Volume of activity Unit selling price Variable cost per unit Total fixed assets Sales mix Cost Volume Profit (CVP) in managerial economics is a form of cost accounting.COST VOLUME PROFIT ANALYSIS only factors that affect costs. These are two approaches to compute the breakeven point is (i) formula approach & (ii) the chart approach. Page 36 T. A useful short term survival costing technique particularly in very competitive environment or recessions where orders are accepted as long as it covers the marginal cost contributes towards fixed costs so that losses are kept to minimum.JOHN INSTITUTE OF TECHNOLOGY . Meaning and concept of contribution In Marginal Costing costs are classified into fixed and variable costs.COST VOLUME PROFIT ANALYSIS marginal costing is based on the behavior of costs that vary with the volume of output. price and volume. Contribution is a pool of amount from which total fixed costs will be deducted to arrive at the profit or loss. The sales and variable cost vary directly with the number of units sold or produced. Sales – Variable Cost = Fixed Cost + Profit Contribution – Fixed Cost = Contribution (4) (5) (1) (2) (3) This fundamental marginal cost equation plays a vital role in profit projection and has a wider application in managerial decision – making problems.e. Advantages of Marginal Costing and Contribution It is simple to understand variable versus fixed cost concept. So. Its shows the relationship between cost. Profitability of the products or the company is determined with reference to their contribution margin. i. the difference between sales and variable cost. will bear a relation to sales and the ratio of contribution to sales remains constant at all levels. prices are determined with reference to marginal cost and contribution margin. Under or over absorption do not arise in marginal costing. Stock valuations are not distorted with present years fixed costs. Formulae used in Marginal Costing and Contribution Sales = Variable cost + Fixed Cost + Profit Sales – Variable cost = Contribution Fixed Cost + Profit = Contribution Therefore. Contribution is the difference between sales and marginal or cost of sales. It is also known as variable costing. Under marginal costing. contribution. From this approach it is possible to identify the amount of contribution per product towards fixed overheads and profits. The effect of production and sales policies is more clearly seen and understood.JOHN INSTITUTE OF TECHNOLOGY . It concentrates on the controllable aspects of business by separating fixed and variable costs. Stock valuation under this of costing is not accepted by the Inland Revenue as it ignore the fixed cost element. Key or limiting factor analysis Ranking the products based on profitability Profit planning Make or Buy decisions BEP and CVP analysis Accept or reject special orders Page 37 T. In the long run. fixed costs may become variable. It ignores fixed costs to products as if they are not important to production. departments etc. price discrimination etc. Its over simplified costs into fixed and variable as if it is so simply to demarcate them. management must consider the total costs not only the variable portion. It fails to recognize that in the long run.COST VOLUME PROFIT ANALYSIS Its provide better information hence is a useful managerial decision making tool. each product makes towards fixed cost and profit leads to the preparation of statement showing the total contribution each product class has made towards the recovery of period costs. profitability of products. hence stock valuation can be distorted if fixed cost is classified as variable. Contribution Analysis and its application in Managerial Decision The analysis of the contribution per unit. Difficulty to classify properly variable and fixed cost perfectly. to perform the fallowing activities: Selecting the optimum product mix Sales mix for profit maximization Fixing selling prices under different circumstances such as trade depression. The concept of contribution helps in deciding breakeven point. export sales. Limitation of Marginal Costing and Contribution Marginal Cost has its limitation since it makes use of historical data while decision by management relates costs to future events. It is not a good costing technique in the long run for pricing decision as it ignores fixed cost. Break Even Analysis Meaning: Break even analysis refers to the ascertainment of level of operations where total revenue equals to total cost. we can say that: Contribution = Fixed Cost at BEP Break Even Chart: Break even analysis is made through Graphical Charts. Assumptions of Breakeven Analysis: Breakeven analysis is only a supply side (i. Construction of Breakeven Chart: The construction of Breakeven Chart involves the drawing of fixed cost of fixed cost line.COST VOLUME PROFIT ANALYSIS Continuing or discontinuing the product or operations. Variable cost and fixed cost to determine the level of operation at which all the costs are equal to its sales revenue. This chart shows fixed and variable cost and sales revenue so that profit or loss at any given level of production or sales can be ascertained. It assumes that Fixed cost are constant T. Breakeven point is the volume of sales or production where there is neither profit nor loss. This is an important technique used in profit planning and managerial decision making. total cost line and sales line as follows. Thus.e. Plot fixed cost on vertical axis and draw fixed cost line passing through this point parallel to horizontal axis. Plot variable cost for some activity levels starting from the fixed cost line and join these points. the points starting from horizontal axis and draw total cost line. It is method of studying the relationship among sales revenue. This will given total cost line. Select a scale for production on horizontal axis and a scale for costs and sales on vertical axis. It is an analysis used to determine the probable profit or loss at any level of operations. It is NO LOSS NO PROFIT situation. Cost only) analysis as it tells you noting about what sales are actually likely to be for the product at these various prices.JOHN INSTITUTE OF TECHNOLOGY Page 38 . Alternatively total cost at different levels. there is no change in the quantity of goods held in inventory at the beginning of the period and the quantity of goods held in inventory at the end of the period). It indicates the relationship of contribution to sales. The concept of Profit Volume Ratio helps in determining the following: Breakeven Point Profit at any Volume of Sales Sales volume required to earn a desired quantum of profit. A fundamental property of marginal costing system is that Profit Volume Ratio remains constant at different levels of activity.JOHN INSTITUTE OF TECHNOLOGY Page 39 . = BEP = Breakeven units x Selling price per unit Fixed Cost / Sales – variable cost Profit Volume Ratio: Reveals the rate of contribution per product as a percentage of total turnover. In breakeven charts. it is assumed that total cost and total revenue can be presented in a straight line. When multiple products are there breakeven chart fails to depict the BEP.e. it assumes that the relative proportions of each product sold and produced are constant (i. the sales mix is constant).e. at least in the range of likely quantities of sales (i. Profitability of Products Processes of Departments T. Formulae used in Break Even Analysis Break Even Point in units = Fixed Cost Contribution per unit BEP Sales in Rs. Linearity) It assumes that the quantity of goods produced in equal to the quantity of goods sold (i. It helps in knowing the profitability of the business. A change is fixed cost does not affect the Profit Volume Ratio.COST VOLUME PROFIT ANALYSIS It assumes average variable costs are constant per unit of output. = Fixed Cost PV Ratio BEP in Rs. which is not possible in reality. In multi-product companies.e. if margin is small. Thus Profit Volume Ratio can be improved by the fallowing: Increasing Selling price Reducing Marginal costs by effectively utilizing men. Increasing the selling price. materials and other services. Otherwise the same quality will not sold. Formulae of PV Ratio P/V Ratio = Sales – Variable cost Sales Contribution Sales P/V Ratio = Change in Contribution Change in Sales Change in Profit Change in Sales P/V Ratio = I – Variable Cost to Sales Ratio Margin of Safety: It refers to the sales in excess of break even volume. On the other hand. Reducing Variable costs Substitution of existing product(S) by more profitable lines Increase in the volume of output T. It is calculated as the difference between sales or production units at the selected activity and the breakeven sales or production. If it is large.COST VOLUME PROFIT ANALYSIS The contribution can be increased by increasing the sale price or by reduction of variable costs. It should be able to influence price. Selling more profitable products. The size of margin of safety is an extremely valuable guide to the strength of a business. it may be possible for a company to have a higher margin of safety in order to strengthen the financial health of the business. provided the is elastic.JOHN INSTITUTE OF TECHNOLOGY Page 40 . there can be substantial falling of sales may and yet a profit can be made. any loss of sales may be a serious matter. thereby increasing the overall Profit Volume Ratio. Reducing Fixed costs. If margin of safety is unsatisfactory. possible steps to rectify the causes of management of commercial activities as listed below can be undertaken. machine. It is an indicator of profitability above the BEP. The modified formula is as fallows Break Even Point (in unit) = Fixed Cost Weighted average contribution Margin Per unit T. most of the firms turn out many products. If the margin of safety and Angle of incidence are considered and studied together.JOHN INSTITUTE OF TECHNOLOGY Page 41 . While the numerator will be the same fixed costs. A high margin of safety with wider Angle of Incidence will represent the most profitable position of the business concern and vice versa. The calculation of breakeven point in a multi-product firm follows the same pattern as in a single product firm. they will provide significance information to the management about the profitability.COST VOLUME PROFIT ANALYSIS Modernization of production facilities and the introduction of the most cost effectively technology. Formulae of Margin of Safety Margin of Safety = Margin of Safety = Total Sales – Break Even Sales Profit P/V Ratio Margin of Safety = Profit x Selling price per unit Selling price per unit – variable cost per unit Margin of Safety = Margin of Sales Total Sales x 100 Angle of Incidence: The angle which sales line makes with the total cost line is known as angle of incidence. the denominator will be weighted average contribution margin. BEP in Multiple Product Situations: In real life. Breakeven Point (in Revenue) = Fixed Cost weighted average P/V Ratio OBJECTIVE OF THE STUDY: To indicate the priorities for the dishes: Milk. This report may be helpful to the accounts department and management department at Mysore Milk Dairy. The denominator will be weighted average contribution margin ratio which is also called weighted average P/V Ratio. Ghee. Peda. Mysore Pak and other products with a view to maximize the profits. Ghee. It will be the contribution margin of each product multiplied by its quantity. In order know the cost of products and also to the break even analysis of actual and budgeted figures. The modified formula is as fallows. numerator is the same fixed costs. Breakeven Point in Sales Revenue: Here also. To identify the breakeven point (BEP) of sales and BEP in units per month for milk. Masala Majjige and Lassi.COST VOLUME PROFIT ANALYSIS One should always remember that weights are assigned in proportion to the relative sales of all products.JOHN INSTITUTE OF TECHNOLOGY Page 42 . T. Mysore pak. SCOPE OF THE STUDY: The cost volume profit analysis presented in the report is confined to MYMUL where multi products are manufactured. Peda. COST VOLUME PROFIT ANALYSIS METHODOLOGY: T.JOHN INSTITUTE OF TECHNOLOGY Page 43 . there may be not 100% accuracy in this presentation.COST VOLUME PROFIT ANALYSIS LIMITATIONS OF THE STUDY: Time constrains: The major limitation of this project report move effective. In MYMUL.JOHN INSTITUTE OF TECHNOLOGY Page 44 . is presented in this report. T. with detail study. no costing technique is followed and hence the available information regarding the cost accounting system practiced here. Limited information: Due to incompleteness and the provide information was completely relied on. JOHN INSTITUTE OF TECHNOLOGY Page 45 .COST VOLUME PROFIT ANALYSIS T.