Castle is a tradition of modernity. It is a delightful haven for foodies who want to enjoy
Question:
Castle is a tradition of modernity. It is a delightful haven for foodies who want to enjoy a variety of cuisines starting
from the desi barbeque to their very own Charcoal Karahi and Chinese. They were bringing pure Muqaddam Beef
to Karachi served in our symbolic taste. At Castle, they offer you a spectacular ambiance worth your money, with
two separate dinning's, areas -One at the rooftop and one indoors among their intricate dcor. They buy quality,
they produce quality, they serve quality.
The key factors communicated by the company are
It has 50 employees.
Rooftop populates 10 waiters whereas indoors 10 waiters.
2 Chefs and 8 support or cooking staff who are helping chefs
Other Staff members are 20 people. These people involve in administrative activities.
Fixed cost for year Rs. 300,000
Additional Information
Direct material for Rs. 200,000
Each Chef salary per month is Rs. 50,000
Each cooking staff salary per month is Rs. 25,000
Each other staff salary per month Rs. 35,000
Kitchen Equipment for Rs.500,000
Deprecation of Kitchen Equipment 10% of cost
Factory Overheads Rs. 100,000
Rent expense of Restaurant for Rs. 200,000 per month
Monthly revenue earned 2.0 million
Required
You are the Management Accountant of "Castle". Recent situation of the whole world facing challenges due to
COVID-19. The castle wants to reopen the restaurant or its business operations accordingly.
a) You have to prepare the statement of COGM based on given data.
b) You have to prepare revised COGM statement which you suggest what would company
change the cost allocation and which cost can be avoid and what cost will be added.
c) You have to prepare the statement of comprehensive income.
d) You have to prepare revised statement of comprehensive income and what will be changed
due to COGM.
e) Comments on how castle maintains the financial performance what and why things need to
change for inflating the bottom line.
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr