Economic Case Study on Spinning Mills

1303 Words Aug 24th, 2014 6 Pages
AN ECONOMIC CASE STUDY ON SPINNING MILLS OF BANGLADESH:
AN ASSESSMENT ON MALEK SPINNING MILLS LIMITED

Prepared By-

Md. Golam ShahriarMajumder (23029)

PREFACE

This report has been prepared to provide a picture of a standard spinning mill of Bangladesh by the form of Malek Spinning Mills Ltd. The main objectives are to highlight different methods such as ‘Demand and Supply Analysis’, ‘Optimal Decision Analysis’, ‘Estimation Techniques’, ‘Consumer Behavior’, ‘Elasticity’ etc. to evaluate how economically balanced the company is. The intent of this document is to encourage the up gradation the standard of the spinning mills in our country and get a strong grip over the economic
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Yam per day with 360 working days of 63,624 Spindles.

Comparative positions of its operating performance are given below-

Description | 2012-2013 (kg.) | 2011-2012 (kg.) | 2010-2011 (kg.) | Production Capacity | 12,600,000 | 12,600,000 | 12,600,000 | Actual Production | 10,643,465 | 10,286,565 | 11,283,075 | Capacity Utilization | 84.47% | 81.64% | 89.55% | Quantity Sold (kg.) | 10,707,591 | 9,309,164 | 10,211,817 | Sales Revenue (Tk.) | 3,262,553,013 | 2,966,197,047 | 3,509,105,802 | Average Selling Price (Tk.) | 304.70 | 318.63 | 343.63 |

From the above we can notice the following-

(a) Due to higher demand, the production and capacity utilization increased from 81.64% to 84.47%.
(b) The revenue has increased from Tk. 2.966 billion to Tk. 3.262 billion because of quantity of sales was increased although the unit price was decreased.

We can also relate the quantity supplied and revenue earned so that we can find out the average selling price i.e.

Average selling price in financial year of 2012-2013 is = Revenue/Quantity = 3262553013/1070759 Tk/kg. = 304.70 Taka/KG.

Analysis of Cost of Goods Sold, Gross Profit Margin and Net Profit Margin

(i) Cost of Goods Sold:

This year’s cost of goods sold was Tk. 2,742.09 million
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