You are the manager of a manufacturing company that prouduces preserved orange juice since 2015 and sells it in a juice bar (like a restaurant for juice). Information of your business in 2018 are as follows: Selling price was 280 Taka per bottle (1 Litre) Average number of juice bottles sold each month was 420. Annual sales growth was 10% Selling price increases by 15% every year Monthly average selling and administration cost of the juice bar was: Rent = 18,000 Taka per month Utility = 11,000 Taka per month Depreciation = 2,000 Taka per month Salary of waiters = 10,000 Taka per month

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

Raw material cost increases by 10% every year Labor cost increases by 5% every year MOH cost increases by 10% every year Selling and administration cost increases by 2% every year

Required:

Explain is short the production process of the preserved orange juice. (You must assume and explain what kind of raw materials might be needed to make a bottle of juice, what can be regarded as direct labor cost in relation to manufacturing the juice, what can be the MOH costs in relation to making the juice). Make a Master Budget (Sales/Production/RM/Labor/MOH/Selling & Administrative/Cash budget) for the year 2019 (Pre CORONA virus year ) and another Master Budget for the year 2020 (CORONA virus year). You need to calculate your own production cost (raw material cost + labor cost + MOH cost) and beginning/ending inventory. Show details/breakdown of your calculation. All the production cost related figures should be based on assumption, however you MUST justify any assumption you make. Give reasons for any changes in the 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 judgement and using the concept from books, slides, google, internet etc. 2. Assignment should be done in MS Excel or MS Word. No hand written.