urgent......................please................

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Reeji Rakesh (Querist)
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17 September 2008 Hi,

i want to know the details regrding the cost cutting.ie how can a company reduce its cost.
eg
Monthly TO Rs.5L
others expenses, salary
25% profit on Monthly TO.

In this case how much percentage will treated as salary. Anybody having any working sheet or method for calculating...
please suggest........

thanks
Reeji

CMA Jitendra Singh

CMA Jitendra Singh (Expert)
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18 September 2008 Generally 4 to 6% of turnover is as salary and admin overheads may be 2-4% .

And costing factors depend upon industry to which u belong ,please be more specific to suggest you cost planning inputs

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Reeji Rakesh

Reeji Rakesh (Querist)
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19 September 2008 Thank you sir

The industry is solar energy producing company. company is not in a good condition as such.means they are not eanring much profit. so they want to reduce its cost.i think there may be 12 employees.i don't know more about the company. So they are asked me to given a working like, when sales is Rs.5Laksh what will be the salary and other expenses, if its 10L, 20L etc.

regards
reeji

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