Brand Pipe Company

Presented byIris Charu Gomes

Neethu Theresa JacobElizabath Eappen

Swarupa RaniDivyanshi Gupta

Production Poly PVC ABS Styrene total

(in pounds) 450000 3871000 769000 1032000 6122000

share of revenue (in %) 7.980246586 61.74774427 15.298165 14.9738445

gross sales price/pound 0.3625 0.276 0.3648 0.2762

total gross sales 163125 1068396 280531.2 285038.4

less discounts, freights, allowances 0.071 0.0138 0.0378 0.0377

total less discounts, freights,etc 31950 53419.8 29068.2 38906.4

net sales price/pound 0.2915 0.2622 0.327 0.2385

total net sales 131175 1014976.2 251463 246132 1643746.2

less variable costs/pound 0.305 0.223 0.3392 0.211

total less variable costs 137250 863233 260844.8 217752

direct margin/pound -0.0135 0.0392 -0.0122 0.0275

total direct margin price -6075 151743.2 -9381.8 28380

less fixed costs/pound 0.0397 0.0375 0.0501 0.0314

total less fixed costs 17865 145162.5 38526.9 32404.8

profit/ pound -0.0532 0.0017 -0.0623 -0.0039

total profit -23940 6580.7 -47908.7 -4024.8

Eliminate 7% wastage

Production Poly PVC ABS Styrene

(in pounds) 450000 3871000 769000 1032000

share of revenue (in %) 7.980246586 61.74774427 15.29816464 14.9738445

gross sales price/pound 0.3625 0.276 0.3648 0.2762

total gross sales 163125 1068396 280531.2 285038.4

less discounts, freights, allowances 0.071 0.0138 0.0378 0.0377

total less discounts, freights,etc 31950 53419.8 29068.2 38906.4

net sales price/pound 0.2915 0.2622 0.327 0.2385

total net sales 131175 1014976.2 251463 246132

less variable costs/pound 0.305 0.223 1 0.211

total less variable costs 137250 863233 769000 217752

less variable costs(when 7% wastage is removed) 127642.5 802806.69 715170 202509.36

direct margin 3532.5 212169.51 -463707 43622.64

less fixed costs 17865 145162.5 38526.9 32404.8

profit -14332.5 67007.01 -502233.9 11217.84

Cost involved in machine change over

Total Revenue 1800000

Average no of change over per day 7

Cost per change over 25

Cost of change over per day 175

Total no of working days assumed 261

Annual average loss incurred due to change over 45675

Annual loss as a percentage of Revenue 2.54%

Market segment-wise Recommendations

Market segment Plastic type used Washington sales(million pounds) Regional sales(million pounds) Percent growth in washington sales Percent growth for regional sales Growth forecast washngton(MP)Growth forecast for the region(MP) Recommendation

Agricultural Irrigation PVC 8.25 16.5 17.00% 17.00% 9.65 19.305 YES

Private portable water system market PVC/Poly/ABS 0.145 0.35 0.00% 0.00% 0.145 0.35 NO( growth zero)

Mobile home market ABS 0.13 1.4 90.00% 75.00% 0.247 2.45 NO (ABS making loss)

Public Portable Water PVC 2 5 100.00% 100.00% 4 10 YES( high growth rate)

Industrial market PVC/Poly 0.6 1 45.00% 45.00% 0.87 1.45 NO( limited usage due to thermopllastic sensitivity)

Turf irrigation market PVC/ABS/Poly 3 5.9 66.00% 57.00% 4.98 9.263 YES ( focus on PVC only)

Drain waste and vent market PVC/ABS 1 1.75 27.00% 35.00% 1.27 2.3625 NO( 90% ABS which is making loss)

Conduit Poly/PVC/Styrene 0.465 1 75.00% 50.00% 0.814 1.5 YES

Sewer and outside drain Styrene/PVC 1.4 2.8 90.00% 78.00% 2.66 4.984 YES

Gas Transportation market PVC/Poly/ABS 0.123 0.3 0%(approx) 0%(approx) 0.123 0.3 NO

Water well service and stock water PVC/Poly 0.4 0.9 0%(relatively low) 0%(relatively low) 0.4 0.9 NO