Viability analysis
| SI | Description | Value |
| 1 | Gross profit before income tax (Rs.lakhs) | 8.362 |
| 2 | Net profit after income Tax (25%) | 6.272 |
| 3 | Net profit ratio | 7.57% |
| 4 | Internal rate of return | 38.11% |
| 5 | Break even percentage | 47.69% |
a) calculation of viability ratios:
Net profit ratio=(net profit*100/sales
=(6.272*100)/82.80
=7.57%
Internal Rate of Return=(net profit*100)/Total investment
=(6.272*100)/16.457
=38.11%
BEP=(fixed cost*100)/(sales-variable cost)
Fixed cost=depreciation+Term loan interest+salary
Variable cost=Raw material+utilities+wages
Fixed cost=0.86 lakhs
Variable cost=5.097 lakhs
Sales=6.90 lakhs
BEP=(0.86*100)/(6.90-5.097)
=86/1.083
=47.69%
