Question
You have a bhelpuri stall in operation at Bashundhara R/A since 2015. Information of yourbusiness in 2018 are as follows: Selling price was BDT 20
You have a bhelpuri stall in operation at Bashundhara R/A since 2015. Information of yourbusiness in 2018 are as follows:
Selling price was BDT 20 per plate
Average Sales volume was 70 plates per day
Annual sales growth was 5% Price increases by 15% everyyear
Monthly average selling and administration cost of the stall was:
Greasepayment= BDT 500/month Rent= BDT1,200/month
Utility= BDT200/month
Depreciation= BDT 50/month
During a normal situation, the following growth has been observed: Raw material cost increases by 5% every year
Labor cost increases by 3% every year MOH cost increases by 7% every year
Selling and administration cost increases by 2% every year
Make a Master Budget (Sales/Production/RM/Labor/MOH/Selling & Administrative/Cash budget)fortheyear2019(Pre-CORONAvirusyear)andanotherMasterBudgetfortheyear 2020 (CORONA virus year). You need to calculate your own production cost (raw material cost+laborcost+MOHcost)andopening/closinginventory.Showdetails/breakdownofyour calculation.
Give reasons of 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 COVID 19 situation, the growth rate may be different than what has been observed during the normal scenario (mentioned above).
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