Cost Analysis
Unit Cost Analysis[pic 1]Name-Yogesh KelkarDivision-BRoll No.-332243Introduction-One and a half billion Indians have adopted a delicious, restful, moderate tea drinking tradition that serves their tastes, budget, lifestyle and sense of what is “socially acceptable”. Today you find Chaiwala by the roadside, whether you travel far north and far south, far east and far west. Chaiwala are all over the country.Ingredients required for Tea Preparation-MilkSugarWaterGingerProcess of Making-Step 1- Add tea to milk in saucepan over low heat. Use 4 teaspoons for every three cups. When making a single cup 1½ teaspoon.Step 2- Once added, stir the tea continuously. Don’t leave. Use low heat to blew slowly to prevent the hot milky overflow (Add Ginger if you require). Step 3- The milk will eventually boil into foamy bubbles, you will notice the colour has changed to caramel creamy colour, now just reduce the heat.Step 4- Remove it from the heat, continue to infuse. The stronger you want the more you heat it.Step 5- Now simply remove from the burner, allow the tea to settle a bit, and then filter it.Step 6- After serve it into the cup, arrange your tea tray. It’s ready to serve.
Swot Analysis-Strength-Fast serviceThe product is directly in front of the customer.Affordable priceNear College CampusVariety of choicesWeakness-Low consumer loyaltyLack of promotion/ offerNo description or menu as suchHygieneService is not quick.No sitting arrangement Opportunities-Way to fast food industryNew snack for making profitGrowing market for snack foodCommunicate with customers through social networkThreats-Customer may decrease because of hygieneRapidly growing ChaiwalasRise in the cost of milk Water AvailabilityCost Sheet for Chai Tapri Wala Total output=21000 unitsPaticular Cost Per UnitTotal Cost Raw Material Sugar (150*35)0.25 Tea (23*300)0.328571429 Ginger (7.5*50)0.01785714341325Milk (600*48)1.371428571 Prime Cost1.96741325Work Expenses:- Fixed- Rent =150000.714285714 Depriciation On stove and Utensils (8000+5000)0.06190476241072Salary 90000.428571429 Variable- Electricity Induciton Cooker =10000.047619048 Gas Cylinder (2*1536)0.146285714 Work Cost3.36582397 Selling and Distribution Expenses Diposable cups (3000)0.1428571433000Total Cost3.50785397Net Profit 3.49361603Sales7147000