NMIMS STRATEGIC COST MANAGEMENT ASSIGNMENT DEC 2021

STRATEGIC COST MANAGEMENT 1. The equity shares of a firm in the current stock market has been traded at Rs60 per share. The price earnings ratio is 10 times. The Dividend payout ratio is 75%. The total number of shares issued and outstanding as on date are 100000 equity shares of Rs10 each. Book value of each share is Rs40 Describe and Compute - Earnings per share, return on equity. 2. Subway is selling good number of the veggie patty Burger on a daily basis. The production house offers a proposal to the management of getting the Veggie Patty manufactured by one of the suppler named Vishnu LLP. However, the management want to take the outsourcing decision also called as make or buy decision by evaluating the various important factors contributing to the decision. Discuss, the major considerations for evaluating the make or buy decisions. 3. Following particulars has been shared for you. If fixed cost is Rs500000, selling price is Rs60 and cost is Rs20 a. Calculate and describe -Breakeven point. b. What could be the sales number to earn a profit of Rs 50000, at a Fixed Cost Rs 200000, Cost Rs30 per unit, Selling Price Rs 60 per unit.