Fly Ash Brick- Cases Project

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Abstract Fly Ash Brick is a cases project describes two business people, Rajiv Sharma and Alok Gupta want to start a business and deciding on whether it will be financially profitable. India utilizes huge amount of coal in order to extract energy and in the process a lot of waste is produced, in this case - fly ash. Huge amount of this substance is dumped into soil, which in turn causes significant demand for land. Indian government strongly supports initiative linked with efficient usage of wasted materials, as currently used construction material damages soil fertility. All of that raise the Opportunity of Fly ash brick project. Based on a preliminary analysis, the contractor decided to establish a plant that has the capacity to produce four million bricks. Although the actual output will depend on market demand, he and his partner can estimate that 2.4 million bricks can be sold year on average 7,000 rupees per thousand bricks. He wants to ensure the viability of the project, with a cost-volume-profit analysis. This paper present the CVP Analysis for Fly ash brick project and give recommendations based on it. In conducting the CVP analysis for Indian company, first we should begin with classifying expenses and structuring it in to initial investment, fixed cost, and variable costs. Initial investment table for the company gives us a comprehensive picture: Exhibit 2: Estimated Investment in Indian Rupees Building Modification | 1,400,000 | Water supply arrangements | 100,000 | Machinery | 2,000,000 | Trucks | 3,000,000 | Payload machine | 1,500,000 | Total | 8,000,000 | From that we identify the company manages a large amount of funds for Trucks and Machinery. Considering the material should be extracted from different sources, including already dumped areas. Therefore, all investment materials are influenced by costs of

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