For the year 2026-27, CALCULATE the estimated net profit per annum of the BCPL, when it operates at full capacity, supplying 240,000 tons at 165,000…

CA Final · Integrated Business Solutions (Multidisciplinary Case Study) · MTP · September 2025
For the year 2026-27, CALCULATE the estimated net profit per annum of the BCPL, when it operates at full capacity, supplying 240,000 tons at 165,000 per ton to UFL and 160,000 tons at 180,000 per ton to external customers respectively.

Suggested Answer and Working Notes:

The estimated profit per annum for FY 2026-27 of BCPL after capacity expansion, working at full capacity, supplying 240,000 tons at 165,000 per ton to UFL and 160,000 tons at 180,000 per ton to external customers respectively Sr. No. Particulars Details Total ₹ Total ₹ (crores) 1 Internal sales (240,000 tons * 165,000 per ton) 39,600,000,000 3,960 2 External Sales (160,000 tons * 180,000 per ton) 28,800,000,000 2,880 3 Total sales 68,400,000,000 6,840 4 Variable expenses (400,000 tons * 30,000 per ton) 12,000,000,000 1,200 5 Extra variable expenses on external sales per ton) (160,000 tons * 20,000 per ton) (Additional delivery expenses - 18,000 per ton and advertising expenses - 2,000 per ton) 3,200,000,000 320 6 Fixed cost after capacity expansion (240,000 tons * 100,000 per ton) + (160,000 tons * 70,000 per ton) 35,200,000,000 3,520 7 Total cost 50,400,000,000 5,040 8 Net Profit per annum (estimated) 18,000,000,000 1,800 The estimated net profit of BCPL for FY 2026-27 is 1,800 crores.
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