In 1 batch of production 1000kg of Bournvita is produced .
Raw material Amount Cost
1 Protein 70kg. ₹90k
2.Fat. 20kg. ₹15k
3.Carbohydrates. 840kg. ₹50k
4.Other. 70kg. ₹15k
(Cocoa solids,
emulsifiers and
Liquid vanilla)
Total. 1000kg. ₹170k
Other factors Amount spent(approx.)
Labour ₹25k
Machinery ₹35k
Electricity. ₹30k
Distribution. ₹40k
And
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Total. ₹130k
Here the total cost of production turns out to be ₹170k+₹130k= ₹300k
Selling price of One kg is ₹380
Hence the S.P. of 1000kg is ₹380k .
Profit = S.P-.C.P
=₹380k-₹300k
=₹80k
Therefore the profit percentage is 20% approximately.
There might be minor variations in the profit since the factors of labour, electricity and transport may differ from the location of production plant.
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