Act 202

Individual Project Outline

Spring 2021

You have had a coffee stall in operation at Bashundhara since 2015. Information about your business in 2018 is as follows:

The selling price was BDT 10 per cup

The average sales volume was 35 cup per day

Annual sales growth was 12%

Price increases by 20% every year

Monthly average selling and administration cost of the stall was:

Police Commission = BDT 500/month

Rent = BDT 1,000/month

Utility = BDT 200/month

Depreciation = BDT 60/month

During a normal situation, the following growth has been observed:

Raw material cost increases by 10% every year

Labor cost increases by 8% every year

MOH cost increases by 12% every year

Selling and administration cost increases by 4% every year

Make a Master Budget (Sales/Production/RM/Labor/MOH/Selling & Administrative/Cash budget) for the year 2019 (Pre CORONAvirus year ) and another Master Budget for the year 2020 (CORONAvirus year). You need to calculate your own production cost (raw material cost + labor cost + MOH cost) and opening/closing inventory. Show details/breakdown of your calculation.

Give reasons for any changes of your assumptions between 2019 and 2020 Master Budget i.e., pre COVID 19 situation and during COVID 19 situation. Also keep in mind that due to the COVID 19 situation, the growth rate may be different than what has been observed during the normal scenario (mentioned above).

Note:

1. You must NOT go outside for data collection. You have to do the assignment based on your judgment and using the concept from books, slides, google, the internet, etc. 2. Assignment should be done in MS Excel or MS Word. No handwritten. 3. No word limit