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# Marketing Management (MKT501) Assignment # 1

Costs are one of the factors determining the price of the product/service, as well as revenues and
profits of the organizations. Let’s assume
“ABC Company” is a manufacturing concern
producing auto parts. Following are the costs incurred by the company in the month of June.
1. Rent = Rs. 100,000
2. Material consumed during production = Rs. 500,000
3. Wages = Rs. 500,000
4. Power = Rs. 100,000
5. Transport = Rs. 50,000
6. Equipment maintenance and General Upkeep = Rs. 50,000
The revenue of the company in June was Rs. 2000000.

Costs are one of the factors determining the price of the product/service, as well as revenues and
profits of the organizations. Let’s assume
“ABC Company” is a manufacturing concern
producing auto parts. Following are the costs incurred by the company in the month of June.
1. Rent = Rs. 100,000
2. Material consumed during production = Rs. 500,000
3. Wages = Rs. 500,000
4. Power = Rs. 100,000
5. Transport = Rs. 50,000
6. Equipment maintenance and General Upkeep = Rs. 50,000
The revenue of the company in June was Rs. 2000000.

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### Replies to This Discussion

Requirements:
1. As per information provided above

 (i) Segregate the fixed costs and variable costs (in the form of table providedbelow) (6 marks),Calculate total fixed and variable costs (2 marks),Calculate the total cost (1 marks),Calculate the profit or loss (1 mark). (ii) (iii) (iv)

(Provide all this information/calculations in your solution file in the form of table
provided below, no extra details required. Hint: 3 are fixed and 3 are variable)
Solution (follow this sample table in your solution file):

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