This document provides information about Lemon Private Limited, a partnership firm established in 2013 that produces lemon drinks. It has 7 partners who equally contributed to an initial investment of Rs. 98 lakh. The firm is located in Bhiwandi, Maharashtra. It aims to be the number one lemon drink and provide a home-made refreshment. The production process and ingredients are described. Cost sheets provide details of raw material costs, production costs, overhead costs, and total costs. Marginal costing concepts of contribution, P/V ratio, and margin of safety are calculated based on selling 1500 units at Rs. 15 per unit in the first month. The budget estimates profit of Rs. 10,484 and recovering total costs

2. PRESENTED BY :
AFROZE – 06
ANURADHA - 02
ASHWIN – 10
MALVIKA – 11
NAMRATA – 08
POOJA – 07
VAIBHAV - 02

3. 





COMPANY PROFILE
WHY LIMON?
PROCESS
INGREDIENTS
COST SHEET
MARGINAL COSTING

4.  SEVEN
LEMON PRIVATE LIMITED

ESTABLISHED IN 2013

INITIAL INVESTMENT : RS. 98,00,000/-

DIRECTOR : MR. AFROZE MANSURY

5. 
PARTNERS : AFROZE MANSURY, ANURADHA
REDDY, ASHWIN PATIL, MALVIkA BANSAL,
NAMRATA jEURkAR, POOjA LAkHANI &
VAIBHAV ZUNjARRAO

FIRM TYPE : PARTNERSHIP WITH EqUAL
CONTRIBUTION & PROFIT SHARING

6.  LOCATION
:INDUSTRIAL ESTATE,
BUILDING NO – 17
EASTERN EXPRESS
HIGHWAY
BHIWANDI – 421302
MAHARASHTRA
 CONTACT
NO : 022-6131191
9664503093
 DISTRIBUTION AREAS : MUMBAI &

7. 1) To facilitate home-made like nimbu pani
refreshment anywhere on the go.
2) To attain number 1 position
amongst lemon drinks.
3) To provide a desirable substitute in
beverage category.

8. 4) To become omnipresent by being
available in colleges, school
canteens, hospitals, gyms etc.
5) To be an economical hydrating
agent.
6) To reach the masses.
7) Finally, in the long run, to be the

9.  CREATING…………..

10.  ONSET OF SUMMERS
 NATURAL HEALTH DRINK
 REFRESHING
 MEDICINAL PROPERTIES
 PREFERRED OVER SOFT DRINKS
 LOW COST

11. FILTRATI
ON OF
WATER
ADDITIO
N OF
SUGAR
SYRUP
FINAL PRODUCT
ADDITION OF
SALT &
PRESERVATIV
ES
ADDITION
OF CONC.
LEMON
JUICE &
ACIDITY
REGULATOR
S

12. 1) Entire process will be based on high-end automated
technology.
2) Water from tube well reservoir will be filtered and
processed sugar syrup will be added.
3) Further, squeezed and concentrated lemon juice will be
added along with acidity regulators, preservatives and
salt.
4) Thus the final product (drink) will be bottled, apped and
sealed.

13. Raw material
Outsourced bottles
Per unit
(Rs.)
1.6 /bottle
Units
1500
Amount
(Rs.)
2400
Corrugated boxes
5/box
100
500
Sugar
30/kg
35
1050
Lemon
0.33/lemon 6000
2000
Acidity regulators
(8ml/unit)
Preservatives (12ml/unit)
80/ltr
12
960
90/ltr
18
1620
Salt (2g/unit)
12/kg
3
36

14.  Cost
Sheet is a periodical statement
of cost designed to show in detail the
various elements of cost of goods
produced like Prime Cost, Factory
Overheads, Cost of Production,
Total Cost, etc.
 It
is prepared at regular intervals
e.g., weekly, monthly ,quarterly,
yearly etc.

15.  Comparative
figures of the various
period may also be shown in the cost
sheet so that assessment can be
made about the progress of the
business

In the assigned project, estimated
Cost Sheet of a month has been
shown

16. Particulars
Per unit
(Rs.)
Units
Amount (Rs.)
(A)Direct material
Opening stock of raw material
5.68
1500
8520
(+)Purchases
0.024
1500
36
Direct expenses
80
1500
120000
Direct wages/Labor
14
1500
21000
149566
PRIME COST
(B)Factory overheads
Factory manager’s salary
12.67
1500
19000
Unproductive wages
1.33
1500
1950
Factory insurance
10
1500
15000
Factory lightning
33.33
1500
50000
Depreciation on plant &
machinery (@5%)
83.33
1500
125000

17. Particulars
Per Unit
(Rs.)
Units
Amount (Rs.)
Factory stationery
0.33
1500
500
Factory overheads
141.63
1500
212500
362066
Factory Cost
(C)Office & administration o/h
Director’s fees
5
1500
7500
Telephone expenses
0.13
1500
200
Office insurance
5.33
1500
8000
Legal expenses
66.66
1500
100000
Depreciation on building (@10%)
133.33
1500
200000
Misc.expenses
1.66
1500
2500
Office overheads
21.21
1500
318200
680266
Cost of Production
(D) Selling & distribution o/h
Depreciation on delivery van (@5%)
3.33
1500
5000
Sales & Promotion expenses
0.13
1500
200

18. PARTICULARS
PER UNIT UNITS
(Rs.)
AMOUNT
(Rs.)
Transportation expenses
0.8
1500
1200
Packaging & Labeling
2.13
1500
3200
Commission on sales (3.25%) 0.03
1500
50
1500
18650
Selling & Distribution O/H
Cost of sales/ Total Cost
12.42
698916

19.  Initially,
the Fixed Cost has been
decided on the basis of the cost of
the materials used in the process
and so was the S.P.

This is done keeping in mind the
pricing technique followed by the
competitors (Nimbooz)

20.  The
per unit cost incurred for the overall
process is estimated to be Rs. 5.70 and
profit margin of Rs. 10.00 is our aim

Considering competitor’s S.P. i.e. Rs. 18,
we have decided ours to be Rs. 15, which
in turn also fulfills our aim

21. cost is the change in the total
cost that arises when the quantity
produced changes by one unit
 Marginal
 That
is, it is the cost of producing one
more unit of a good
 Marginal
costs include all costs that vary

22. 
Fixed cost has been calculated on the
basis of the cost of raw materials used
i.e. is Rs 8566/-

Variable cost has been calculated
including the variable factory overheads
(i.e. Repairs & Maintenance,
Unproductive wages and Factory
stationery).

Both these cost are being fixed after

23. QUANTIT S.P
Y
.
FIXED
COST
(FC)
VARIABL
E
COST(VC)
RS. 2.3
P.U.
TOTAL
COST
(FC +
VC)
SALES
(S.P. *
QUANTITY
)
0
15
8566
-
0
0
500
15
8566
1150
9716
7500
1000
15
8566
2300
10866
15000
1500
15
8566
3450
12016
22500

24.  P/V
RATIO : CONTRIBUTION/SALES *
100
QUANTITY = 1500
P/V RATIO = (SALES-VC)/SALES *100
= (22500-12016)/22500
*100
= 47%

SO, ThE P/V RATIO IS 47%.

25. 
MARGIN OF SAFETY =
PROFIT/PVRATIO
= (SALESTC)/PV
= (2250012016)/47%
= RS.22306.38 /-

ThEREFORE, MOS IS RS.

26. 1) Being a start up we have decided to
produce only 1500 units in the first
month.
2) After sale of almost 628 units we
will start gaining.
3) On sale of 1500, profit estimated is
Rs. 10484/-

27. 4) It is expected that on sale of 50,000
units we will be able to recover the total
cost of production.
5) At the end, as per budgeting, we got a
product that is high on lemon and low
on money.

28. ThAN
YOU
K
…