PROJECT REPORT

ON

A COMPREHENSIVE STUDY OF

INDIAN BANKING SYSTEM

Rayat Institute & Management

PTU Jalandhar

In the fulfillment for the degree of Master of Business Administration

Session 2015-17

SUBMITTED To:- SUBMITTED BY:-

Mr. Kawalnain Singh Simanpreet Kushan
 M.B.A-4th Sem.
Roll No-15135556

ACKNOWLEDGEMENT

Words have never expressed human sentiments. This is only an attempt to express my deep
gratitude which comes from my heart.

It is a great pleasure for me to express my deep feeling of gratitude to my respected guide Mr.
Kawalnain Singh for her invaluable guidance & supervision in completion of this project work.

I am grateful to my parents for their lovable support. Last but not least I am thankful to my
friends other faculty Members for their direct & indirect help for completion of this work..
 TABLE OF CONTENT

S.N CONTENTS Page

O. no.
1 Introduction 4

2 Objective of Study 11-13

3 Review of Literature 14-15

4 Research Methodology 16-18

5 Data Analysis and Interpretation 19-44

6 Findings 45-46

7 Suggestions 47-48

8 Conclusion 49-50

9 Bibliography 51-52
INTRODUCTION
TO
CVP ANALYSIS
 INTRODUCTION

Cost volume profit (CVP) analysis generally defined as a planning tool by which manages can
evaluate the effect of a change(s) in price, volume, variable cost or fixed cost on profit.
Additionally, CVP analysis is the basis for understanding contribution margin pricing, related
short-run decisions, target costing and transfer pricing. In the marginal costing varies directly
with the volume of production or output. On the other hand, fixed cost remains unaltered
regardless of the volume of output. In net effects, if volume is changed, variable cost varies as
per the changes in volume. In this case, selling price remains fixed, fixed remains fixed and then
there is a change in profit.

Cost Volume profit Analysis is a logical extension of Marginal costing. It is based on the same
principles of classifying the operating expenses into fixed and variable. Now-a-days it has
become a powerful instrument in the hands of policy makers to maximum profits.

There elements need to be related ion order to achieve the maximum profit. Apart from profit
projection, the concept of cost volume profit is relevant the short run. The relationship among
cost, revenue and profit at different levels may be expressed in graphs such as breakeven charts,
profit volume graphs or in various statements forms. Earning of maximum profit is the ultimate
goal of almost all business undertakings. The most important factors influencing the earning of
profit is the level of production. (I.e. Volume of production)

Profit depends on a large number of factors, most important of which are the cost of
manufacturing and the volume of sales, volume of sales depends upon the volume of production
and market forces which turns in related to costs.

Management has no control over market. In order to achieve certain level of profitability, it has
to exercise control and management of costs, mainly variable cost. This is because fixed cost is a
non-controllable cost.

It helps to find out the profitability of a product, department of division to have better product
mix, for profit planning and to maximize the profit of a concern. These decisions can include
such crucial areas as pricing policies, product mixes, market expansion or contractions,
outsourcing contracts, idle plant usage, discretionary expenses planning and a variety of other
important considerations in the planning process. Given the broad range of context in which cost
volume profit can be used.

In other words, it helps in locating the level of output which evenly breaks the cost and revenues
used in its broader sense, it means that system of analysis which determine profit, cost and ales
value at different levels of output.

The cost Volume profit analysis establishes the relationship of cost, volume and profit. Thus cost
volume profit furnishes the complete picture of the profit structure. In other word, cost volume
profit is a management accounting tool that expresses relationship among sales, volume, cost and
profit. The cost volume analysis uses the techniques of breakeven analysis, operating leverage,
margin of safety and effect of changes on sales and contribution on margin and net operating
income. The level of sales needed to achieve desired target profit, in order to predict changes in
net operating income. The data are cost sheet and balance sheet collected from the company.

BREAKEVEN ANALYSIS;

The breakeven analysis indicates at what level cost and revenue an in equilibrium. It is a simple
and easily understandable method of presenting to management the effect of changes in volume
on profit detailed analysis of breakeven data will reveal to management the effect alternative
decision which reduce or increase cost and which increases sales volume and income. It is a
device which portrays the effects of any type of future planning by evaluating alternative course
of action.
BREAKEVEN POINT;

Under this analysis at the breakeven point profit being zero, contribution is equal to the fixed
cost. If the actual volume of sales is higher than the breakeven volume, there will be a profit.

Fixed Cost Breakeven sales (in Rupees) = Fixed Cost

Contribution Margin Ratio
Breakeven point (in units) = Fixed Cost
Contribution units
MULTIPLE PRODUCTS IN BEP

There are multiple products with different has a direct effect on the fixed cost recovery and total
profits of the firm. Different products have different profit volume ratio because of different
selling price and variable cost. The total profit depend to some extent upon the proportion is the
products are sold.

P/V Ratio = Sales- Variable Cost * 100

Sales

B/E Sales= Fixed Cost *100

Total Contribution

MARGIN OF SAFETY;

This is the difference between the sales and breakeven point. If the distance is relatively short it
indicates that a small drop in production or sales will reduces profit considerably. If the distance
is long it means that the businesses can still making profit even after a serious drop in
production. It is important that there should be a reasonable margin of safety otherwise reduces
level of production may prove dangerous.

Margin of Safety = Sales BES

Margin of safety= Margin of Safety * 100

Sales
DESIRED TARGET PROFIT

The management faces two decisions (i) To increases sales volume through reduction in selling
price (ii) To increase selling price in case the profit volume ratio is low, with the expectation that
the higher profit will be earned. If reduction is selling price does notin crease the sales volume
the price reduction will result only in lower profits. If the profit makes only small contribution,
then a reduction in selling price makes it all them or difficult to recover the fixed cost and to earn
profit.

Required sales in units= Fixed Expenses + Target profit

Unit Contribution Margin

Required sales Value= Fixed Expenses + Target profit

Contribution Margin Ratio
PROFIT FROM GIVEN SALES:

It can be appropriately used to solve most of the problems of cost volume profit analysis .Profit
is different from the contribution which is net margin increasing after reducing fixed expenses
from the total contribution profit can be ascertained as given below

Contribution = Sales - P/V ratio

Profit = Contribution - Fixed
DEGREE OF OPERATING LEVERAGE:
Operating leverage is determined by the firms sales revenue and its earnings before interest and
tax (EBIT). The earnings before interest and taxes are called as operating profit ( EBIT), while
financial leverage can be quite significant for the earning available to ordinary shareholders.

Financial Leverage= EBIT

Profit
Operating Leverage= Contribution

EBIT

Combined Leverage= Contribution

EBIT

CONTRIBUTION MARGIN RATIO:

The P/V ratio which establishes the relationship between contribution and sales is of vital
importance for studying the profitability of operation of a business. It reveals there effects on
profit of changes the volume. The profit volume ratio is also called the contribution ratio or
Marginal ratio.

Contribution = Sales Variable

Contribution Margin Ratio= Contribution *100

Sales
TREND ANALYSIS:

Trend is the long term movement of a time series. It helps to ascertain the growth factor. If a
trend can be ascertained and tentative estimates concerning future is made accordingly. The
equation for the straight lines used to describe the linear relationship between independent
variable and the dependent variables.

Y = a + b(x)

COMPARATIVE INCOME STATEMENT:

The income statement discloses net profit or net loss on account of operations. A comparative
income statement will show the absolute figures for two or more periods. The absolute change
from one period to another and if desired. The change in terms of percentages. Since, the figures
for two or more periods are shown side by side; the reader can quickly ascertain whether sales
have increased or decreased, whether cost of sales has increased or decreased etc.
OBJECTIVE
OF
STUDY
OBJECTIVES

PRIMARY OBJECTIVE:

To analysis of the Cost Volume Profit and its impacts at COMMERCE CAREER GYAN (CCG)
PVT. LTD.

SECONDARY OBJECTIVE:

1. To identify the effect of breakeven point for multiple products and ascertain which product is
as advantages.

2. To study the level of sales need to achieve a desired target profit and identify Margin of safety
and its significance.

3. To measure the degree of leverages.

4. To analyze the trend with regards to income, expenditure and profits.

SCOPE OF THE STUDY

This study is performed by using the cost sheet and balance sheet of CCG. The analysis done in
the cost sheet are Breakeven analysis, profit volume, etc., these calculation cover the major areas
like contribution margin, profit. This would be useful for company to make new strategy to
compete in the market by adopting various controlling techniques in the process of
manufacturing.

This study was conducted only on overall cost volume profit analysis and not on each and every
variables. This study to help to forecast profit fairly and accurately as it is essential to know the
relationship between profits and costs.

This study assists in evaluation of performance for the purpose of control and also assists in
formulating policies by showing the effect of different price structure on costs and profits.

This study predetermined overheads rates are related to a selected volume of production.
 REVIEW
OF
LITERATURE
 REVIEW OF LITERATURE

Cost volume profit analysis is one of the most hallowed, and yet one of the simplest, analytical
tool in management accounting. In a general sense, it provides as weeping financial overview of
the planning process . That overview allows managers to examine the possible impacts of a wide
range of strategic decisions. These decisions can include such crucial areas as pricing policies,
product mixes, market expansion or contractions, outsourcing contracts, idle plant usage,
discretionary expenses planning and a variety of other important considerations in the planning
process. Given the board range of context in which cost volume profit can be used.

The basic simplicity of cost volume profit is quite remarkable. Armed with just three inputs of
data Sales price, variable cost per unit, and fixed cost a managerial analyst can evaluate the
effect of decision that potentially alter the basic nature of a firm.
 RESEARCH
METHODOLOGY
 RESEARCH METHODOLOGY

Research Methodology is a way to systematically analysis the research subject and it may be
understood as a science of study how research at done scientifically. Research is common
parlance refer to a research for knowledge. According to Redman and Mary, research is defined
as a systematized effort to gain new knowledge. Research Methodology is a way to
systematically solve the problem. It may be understood as a science of studying how research is
done scientifically. The advanced learners dictionary lay down the meaning of research as a
careful investigation or inquiry especially through search for new facts in any branch of
knowledge.

The secondary data is collected from the annual report of CCG, Chandigarh for the financial
year 2014-2015 and the various records maintained in the Finance Department.

RESEARCH DESIGN:

Research Design is the conceptual structure within which the research is conducted, A research is
the arrangement of conditions for the collection and analysis of data in a manner that aims to
combine the relevance to the research purpose with economy in procedures. Research constitutes
the blue print for the collection, Measurement and analysis of data .

ANALYTICAL AND DESCRIPTIVE RESEARCH DESIGN: ANALYTICAL DESIGN:

The researcher has to use facts or information already availability and analyze these to make a
critical evaluation of the materials.
DESCRIPTIVE RESEARCH:

Descriptive research is those studies concerned with describing the characteristics of the state of
affairs as its exist at present. The main purposes descriptive research study is to specify the
objectives with sufficient precision to ensure that data collected are relevant. The data collected
are examined collected the information. The research design is prepared keeping in view the
objectives of the study the resources available.

METHOD OF DATA COLLECTION;

The base data has been collected as below

SECONDARY DATA

The secondary data is to be collected from the financial reviews of the company it consists of
Balance and cost sheet which already been collected and analyzed by someone else the
secondary data may either be published data or unpublished data.

The Analysis of Data of CCG (I) Pvt Ltd is done on the basis of Secondary Data.

SOURCES OF SECONDARY DATAS ARE:-

Annual report of the company

Published financial statement of the company
Financial reports of the company
Text books
 DATA
INTERPRETATION
AND
ANALYSIS

ANALYSIS AND INTERPRETATION OF DATA

1 ) Contribution Margin Ratio

Table showing Contribution Margin Ration of A:

Particulars 2013 2014 2015

Sales 241702 261115 235175

Variable Cost 127168 146892 128760

Contribution 114534 114223 106415

Contribution Margin Ratio 47.4 43.8 45.24

Contribution= Sales Variable Cost

Contribution Margin Ratio= Contribution *100

Sales

FINDINGS:

It is found that a sale reduces from 2013 to 2014 in A Contribution Margin Ratio in the year 2013
47.4%, 2014 43.8%, 2015 45.24%.
INFERENCE:
Contribution Margin of the A has increased to 45.24 compared to the previous year
Chart showing Contribution Margin Ration of A:

CONTRIBUTION MARGIN RATIO

48

47

46
CONTRIBUTION MARGIN
RATIO
45

44

43

42
2013 2014 2015
(II) BREAKEVEN SALES

A:

Year Fixed Cost Contribution Margin Breakeven

Ratio sales(Rs)
2012-13 53038 47.4 1118.9

2013-14 552276 43.8 1262

2014-15 52970 45.24 1170.86

Breakeven Sales= Fixed Cost

Contribution Margin Ratio

FINDINGS:

It is found that the Breakeven Sales Value of A for the 2012-13 are1118.9 and 2013-14 are 1262
and 2014-15 are 1170.86.

INFERENCE:

The breakeven sales values of A are decline from Rs.1262 to Rs.1170.86 MT. It shows decline
trend.
( i ) Chart showing Breakeven Sales of year 2013
( ii ) Chart showing breakeven sales of 2014
( iii ) Chart showing Breakeven Sales of 2015
(III) BREAKEVEN POINT:
A

YEAR 2013 2014 2015

2012-2013 53.038 11.4 4652.45

2013-2014 55276 11.4 4848.77

2014-2015 52970 10.6 4997.16

BREAKEVEN POINT= Fixed COST

Contribution per unit

FINDINGS:
For 2013, when the output is at 4652 units revenue equal cost i.e. it reaches the critical point of
no profit/ no loss. A sales increases the level there shall not be loss of the company. In 2014, the
Breakeven Points is increases and shown positive trend and in 2015, the Breakeven points
increases and there shall be profit of the company.
INFERENCE:
The breakeven Points in which in units for A has increased in 2014 2015 and show positive
trend.

Chart showing breakeven point

BREAKEVEN POINT
5100

5000

4900

4800 BREAKEVEN POINT

4700

4600

4500

4400
2012-13 2013-14 2014-15
(IV) MULTIPLE PRODUCTS BREAKEVEN POINTS:

. Table showing the cumulative Sales and Cumulative Contribution in the year of 2013

Product Sales Cumulative sales P/V Ratio Contribution Cumulative

contribution
A 241702 241702 47.4 114534 114534
B 279615 521317 50.8 142176 256710

P/V Ratio= Sales-Variable cost

Sales

Breakeven Sales= Fixed Cost *Total Sales

Total Contribution

= 129458 *521317

256710

Rs.262898

INFERENCE:
The breakeven Points in which in units for B has increased in 2014 2015 and show positive
trend.

FINDINGS:
It is found that the profit Volume ratio of A is 47.4% and B is 50.8%. The B Sales and
Contribution is high.
INFERENCE:
In the year 2013, best product is B the Profit Volume Ratio also high.In the Breakeven is Rs. 2,
62,898

.( i ) Chart showing Multiple Product Breakeven Point of 2013

Showing Table the cumulative Sales and Cumulative Contribution in the year 2014

Product Sales Cumulative P/V Ratio Contribution Cumulative

Sales Contribution
A 2,61,115 2,61,115 43.8 1,14,223 1,14,223
B 2,74,715 5,35,830 49.56 1,36,157 2,50,380

Breakeven Sales = Fixed Cost * Total Contribution

Total Contribution

= 1,35,138 , * 5,35830

Rs,

best product is Breakeven is Rs. 289204.

FINDINGS:
It is found that the profit Volume ratio of A is 43.8% and B is 49.56%. The B Sales and
Contribution is high

INFERENCE:

In the year 2014, best product is B the Profit Volume Ratio also high. In the Breakeven is Rs.
289204.
(ii) Chart showing multiple product breakeven point of 2014
(iii) Table showing the cumulative Sales and Cumulative
Contribution in the year 2015:
Product Sales Cumulative P/V Rates Contributio Cumulative
Sales n Contributio
n
A
B

REAKEVEN SALES = fixed cost * Total Sales

Total contribution

= 1,32,580 *4,76,970

2,23,210

= Rs.2, 83,305

FINDINGS:
It is found that the profit Volume ratio of A is 45.24% and B is 48.3%. The B Sales and
Contribution is high
In the year 2015, best product is B the Profit Volume Ratio also high. In the Breakeven is Rs. 2,
83,305.

(iii) Chart showing Multiple Product Breakeven Point of 2015

(IV) MARGIN OF SAFETY:

Table showing Margin of Safety

Year BREAK EVEN SALES MARGIN OF RATIO

SALES SAFETY

2012-13 1118.9 241902 240584 99.53

2013-14 1262 201115 259853 99.51

2014-15 1270 235175 235005 99.5

Margin of Safety = Sales Breakeven

Margin of Safety Ratio = ___Margin of Safety_____________ * 100

Sale

FINDINGS:

It is found that the Margin of Safety ratio in the Year 2013 99.53%, 2014 99.51%, 2015
99.5%. It is kept on constant for the three years. It is the strength of the business.

INFERENCE:

The large Margin of Safety that the business is sound in A.

 RATIO
99.54
99.53
99.53
99.52
99.52 RATIO
99.51
99.51
99.5
99.5
99.49
99.49
2013 2014 2015
(V) DESIRED TARGET PROFIT:
The contribution Margin Method can be used to find the number of units that must
be sold to attain a target profit.

In the case of the contribution Margin Method, the Formulas are

Profits Required sale in units = ___Fixed Expenses + Target Profit__

Units contribution Margin

= _ __52970 + 162.27_ _

10.6

= 5012.47 units

In rupees = _______ Fixed cost + target profits _____

Contribution Margin Ratio

= _______ 52970+162.27 _____

45.24

= Rs. 1174.4

FINDINGS:

It is found that to achieve desired Target profit required sales in units 5012 and the
required sales value is Rs. 1174.

INFERENCE:

The target profit of Rs. 162.27 lakhs the units to be sold is 5012 units and the sales
to be achieved is Rs. 1174.45 lakhs.
(VI) PROFIT FROM GIVEN SALE
Table showing Profit from given Sales:

YEAR CONTRIBUTION FIXED COSTS PROFIT

2012-13 114534 55038 59496

2013-14 114223 55276 58947

2014-15 106415 52970 53445

Contribution = Sales - P/V ratio

Profit = Contribution - Fixed Cost

FINDINGS:
It is found that the profit from given sales of Radial for the 2012 -13 are 59,496 and 2013 14
are 58,947 and 2014 15 are 53,443.

INFERENCE:
The Profit from given sales of A are decline from Rs. 59,496 to Rs.53,443. It shows decline
trend.

Chart showing Profit from given Sales:

PROFIT

2012-13
53445 59496 2013-14
2014-15

58947
(VII) DEGREE OF OPERATING LEVERAGES:
Table showing Degree Operating Leverages:

PARTICULARS 2013 2014 2015

SALES 262175 269115 239185

(-) VARIABLE COST 133734 149992 127403

CONTRIBUTION 128441 119123 111782

(-) FIXED COST 58941 57889 57662

EBIT 69500 61234 54120

(-) INTEREST 14747 1420159 33564

EAT 54753 47135 20556

Financial Leverage = _ EBIT___________

Profit

Operating Leverage = Contribution_____

EBIT

Combined Leverage = _ Contribution_______

EBT

Table Showing the Leverages:

YEAR FINANCIAL OPERATING COMBINED
LEVERAGE LEVERAGE LEVERAGE
2013 1.27 1.85 2.35

2014 1.29 1.95 2.53

2015 1.61 2.2013 3.33

CALCULATION:

For 2013

Financial Leverage = ______69,500 ________

54,753

= 1.27

Operating Leverage = ____1, 28,441 ________

69,500

= 1.85

Combined Leverage = ___ 1, 28,441 _______

54,753

For 2014
Financial Leverage = ______61,234 ________

47,134

= 1.29

Operating Leverage = ___ 1, 19,123 _________

61,234

= 1.95

Combined Leverage = _____1, 19,123 _____

47,135

= 2.53
For 2015

Financial Leverage = ____54,120 __________

33,564

= 1.61

Operating Leverage = ______1, 11,782 ______

54,120

= 2.2013

Combined Leverage = ______1, 11,782 ____

33,564

= 3.33

FINDINGS:

It is found that Financial Leverage is in 2013 1.27 increasing 1.29 - 2014 the increase 1.61 -
2015 the increase and operating Leverage is in is in 2013 1.8552 increasing 1.95 - 2014 the
increase 2.2013 - 2015 the increasing and Combined Leverage is in 2013 2.35 increasing 2.53 -
2014 the increase 3.33 - 2015 the increased.

INFERENCE:

High Operating Leverage is good since the revenue is increasing every year. Positive Financial
Leverage is seen of indicates that the ratio on investment. On amount was more than fixed cost
of their use.
Chart Showing the Degree of Leverages:

3.5

2.5

2
FINANCIAL LEVERAGE
OPERATING LEVERAGE
1.5
COMBINED LEVERAGE

0.5

0
2012-13 2013-14 2014-15
STATEMENT SHOWING COMPRATIVE PROFITBILITY OF AS AND BS OF 2013
2014.

PARTICULARS UNITS A UNITS B TOTAL

A. Sales value of 261 261115 261 274716 535831

production

Variable cost

Raw material 78 75145 79 83152 158297

Variable overheads 39 3920138 51 53605 92683

B. Variable cost 114 114223 129 136157 25201560

Contribution 147 146892 132 138559 284871

(-) Fixed Cost 102400

Profit 182471

FINDINGS:

It is found that Comparative profitability of A and B is sale Value of production is Rs. 5, 35,181
and variable cost is 2,50,960 and after reduction from Sale 2,84,871 and less the fixed cost is
1,02,400. The profit of the both products is Rs. 1, 82,471.

INFERENCE:

The profit of the A and B has positive trends in the year of 2013 2014
STATEMENT SHOWING COMPRATIVE PROFITBILITY OF AS AND BS OF 2014-15.

PARTICULARS UNITS A UNITS B TOTAL

A. Sales value of 248 235175 264 241795 416890

production

Variable cost

Raw material 78 72136 78 70180 142310

Variable overheads 39 37429 56 50275 87704

B. Variable cost 115 12015559 133 120435 230014

Contribution 133 125615 136 121340 186876

(-) Fixed Cost 107400

Profit 79476

FINDINGS:

It is found that Comparative profitability of A and B is sale Value of production is Rs. 4,16,890
and variable cost is 2,30,014 and after reduction from Sale 1,86,876 and less the fixed cost is
1,07,400. The profit of the both products is Rs.79,476.

INFERENCE:

The profit of the A and B has positive trends in the year of 2014 - 2015.
FINDINGS
 FINDINGS

1. Contribution Margin of the A and B has shown Positive trend.

2. The Break even sales values of A have shown a decline trend which is the positive
indicators.
3. The Break even points in units for A have shown a decline trend.
4. The Best Product during the three years 2006 2015 in B. This Product show high profit
volume ratio when compared to A Multi products of Break even charts are very useful for
the costs and profit planning and growth of both products.
5. The target profit of Rs. 162.27 lakhs the units to be sold is 5012 units and the sales to be
achieved in Rs. 1174.27 lakhs.
6. The Profit from given sales of B are decline from Rs. 80,173 to Rs.58,310. It shows
decline trend.
7. The large Margin of Safety indicates that the business is sound in A.
8. High Leverage is good since the revenue are increasing positive financial Leverage is
seen 2014 indicates that the return on investment on asset was more than fixed cost of
their use. In 2015, this is negative which indicates that the return on investment a
financial asset is less than the funds cost.
9. The profit for the both the A and B have decline trend.
10. It is inferred that trend project for the expenses of Commerce Career Gyan (CCG) Pvt.
Ltd to be increased to a great extent. The company takes the step to control its
expenditure.
SUGGESTIONS
SUGGESTIONS

1. It is beneficial to growth of the company if it maintain the break even points are multiple
products.
2. Trend analysis shows that the expenditure is likely to increase for the next five year. If
this state continues the expenditure may overcome the income which will unproductive
for the company. So the company should give more attention to its expenses.
3. From the regression line of production on sales, sales variables can be obtained for the
any value of production variable. Thus, this method can be used by the company to easily
achieve its target sale.
4. The company can maintain the fixed cost and long as it brings some profit to the
company.
5. Break even points for A and B through has come down in2014 2015. This has to be
maintained as there is found to be an increase in the year 2013 2014.
6. Low financial leverage in 2015 indicates that the company must concentrate on fixed cost
involve in usage of assets.
CONCLUSION
 CONCLUSION

The study was done at CCG to find out the cost volume profit stability of the company with the
help of cost sheet for three years. After an extensive and exhaustive analysis, it was found that
the company should maintain fixed cost as long as it brings some profit. The total cost of
productions should be reduced in order to increase net operating income. Although the Margin of
Safety was found to be high. The leverage, it indicates that the return on investment a financial
asset is less than the funds cost. It is found that trend project for the expenses of the company to
be increased to a great extent.

The company should focus on improving its costs. Margin is forth coming years. Also it will be
beneficial to the growth of the company, if it maintain breakeven point is multiple products. High
operating leverage is good since the revenue is increasing. Low financial leverage indicates that
the company must concentrates on fixed involve is usage of assets. The company can maintain
the fixed cost and long as it brings some profit to the company.

We conclude of this analysis, Company or management enables to predict the profit as a wide
range of volume and to determine the price of the products very carefully. Through the analysis,
the manager can easily take decision showing in its reports how utilization of available capacity
will lead to increase in profit.
BIBLIOGRAPHY
 BIBLIOGRAPHY

BOOKS

V.K SAXENA and C.D.VARSHID Basic of Cost and Management Accounting

C R KOTHARI Research Methodology & Techniques

JOURNALS:

Journals of the financial Management