Asian Journal of Research in Business Economics and Management
  • Year: 2014
  • Volume: 4
  • Issue: 5

S.D. Synthetics Pvt. Ltd.

  • Author:
  • Shivani Bali, Raghav Dhir
  • Total Page Count: 5
  • Page Number: 32 to 36

*Department of Operations & Systems, Lal Bahadur Shastri Institute of Management, Delhi, India

**Student, Lal Bahadur Shastri Institute of Management, Delhi, India

Online published on 7 May, 2014.

Abstract

S.D. Synthetics is a school uniform manufacturer in New Delhi with its head office in Karol Bagh. S.D. Synthetics supplies school uniforms to schools directly and is hence a wholesale business. It was established in the year 1990. As of today, with a dramatic increase in the number of schools in the region, S.D. Synthetics has prospered over the years and now has two manufacturing units in Karol Bagh itself.

The owner Mr. Anil is contemplating to set up of a third plant in the Bahadurgarh area of the National Capital Region. For this reason Mr. Anil has appointed Decision Tech Ltd. Company to help him evaluate his investments and payback periods. The present paper is an attempt to find out his breakeven period for his third plant.

Keywords

Break-even analysis, fixed cost, variable cost, new venture