1. Brand Pipe Company
Presented by
Iris Charu Gomes
Neethu Theresa Jacob
Elizabath Eappen
Swarupa Rani
Divyanshi Gupta

2. Production Poly PVC ABS Styrene total
(in pounds) 450000 3871000 769000 1032000 6122000
share of revenue (in %) 7.980246586 61.74774427 15.298165 14.9738445
gross sales price/pound 0.3625 0.276 0.3648 0.2762
total gross sales 163125 1068396 280531.2 285038.4
less discounts, freights, allowances 0.071 0.0138 0.0378 0.0377
total less discounts, freights,etc 31950 53419.8 29068.2 38906.4
net sales price/pound 0.2915 0.2622 0.327 0.2385
total net sales 131175 1014976.2 251463 246132 1643746.2
less variable costs/pound 0.305 0.223 0.3392 0.211
total less variable costs 137250 863233 260844.8 217752
direct margin/pound -0.0135 0.0392 -0.0122 0.0275
total direct margin price -6075 151743.2 -9381.8 28380
less fixed costs/pound 0.0397 0.0375 0.0501 0.0314
total less fixed costs 17865 145162.5 38526.9 32404.8
profit/ pound -0.0532 0.0017 -0.0623 -0.0039
total profit -23940 6580.7 -47908.7 -4024.8

3. Eliminate 7% wastage
Production Poly PVC ABS Styrene
(in pounds) 450000 3871000 769000 1032000
share of revenue (in %) 7.980246586 61.74774427 15.29816464 14.9738445
gross sales price/pound 0.3625 0.276 0.3648 0.2762
total gross sales 163125 1068396 280531.2 285038.4
less discounts, freights, allowances 0.071 0.0138 0.0378 0.0377
total less discounts, freights,etc 31950 53419.8 29068.2 38906.4
net sales price/pound 0.2915 0.2622 0.327 0.2385
total net sales 131175 1014976.2 251463 246132
less variable costs/pound 0.305 0.223 1 0.211
total less variable costs 137250 863233 769000 217752
less variable costs(when 7% wastage is
removed) 127642.5 802806.69 715170 202509.36
direct margin 3532.5 212169.51 -463707 43622.64
less fixed costs 17865 145162.5 38526.9 32404.8
profit -14332.5 67007.01 -502233.9 11217.84

4. Cost involved in machine change over
Total Revenue 1800000
Average no of change over per day 7
Cost per change over 25
Cost of change over per day 175
Total no of working days assumed 261
Annual average loss incurred due to change over 45675
Annual loss as a percentage of Revenue 2.54%

5. Market segment-wise
Recommendations
Growth forecast for the
Market segment Plastic type used Washington sales(million pounds) Regional sales(million pounds) Percent growth in washington sales Percent growth for regional sales Growth forecast washngton(MP) region(MP) Recommendation
Agricultural Irrigation PVC 8.25 16.5 17.00% 17.00% 9.65 19.305 YES
Private portable water system market PVC/Poly/ABS 0.145 0.35 0.00% 0.00% 0.145 0.35 NO( growth zero)
Mobile home market ABS 0.13 1.4 90.00% 75.00% 0.247 2.45 NO (ABS making loss)
Public Portable Water PVC 2 5 100.00% 100.00% 4 10 YES( high growth rate)
Industrial market PVC/Poly 0.6 1 45.00% 45.00% 0.87 1.45 NO( limited usage due to thermopllastic sensitivity)
Turf irrigation market PVC/ABS/Poly 3 5.9 66.00% 57.00% 4.98 9.263 YES ( focus on PVC only)
Drain waste and vent market PVC/ABS 1 1.75 27.00% 35.00% 1.27 2.3625 NO( 90% ABS which is making loss)
Conduit Poly/PVC/Styrene 0.465 1 75.00% 50.00% 0.814 1.5 YES
Sewer and outside drain Styrene/PVC 1.4 2.8 90.00% 78.00% 2.66 4.984 YES
Gas Transportation market PVC/Poly/ABS 0.123 0.3 0%(approx) 0%(approx) 0.123 0.3 NO
Water well service and stock water PVC/Poly 0.4 0.9 0%(relatively low) 0%(relatively low) 0.4 0.9 NO