You have a tea stall in operation at Ramna park since 2015. Information of your business in

2018 are as follows:

Selling price was BDT 15 per cup

Average Sales volume was 225 cup per day

Annual sales growth was 15%

Price increases by 10% 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

Salary (Production) = BDT 8000/ Month

Sales (sales + admin ) = BDT 10000/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 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 opening/closing inventory. Show

details/breakdown of your calculation.

Give reasons of any changes of you 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).