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 45 cups per day

Annual sales growth was 10%

Price increases by 10% every year

Monthly average selling and administration cost of the stall was:

Police Commission = BDT 700/month

Rent = BDT 1,200/month

Utility = BDT 100/month

Depreciation = BDT 50/month

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

Raw material cost increases by 12% every year

Labor cost increases by 10% every year

MOH cost increases by 15% 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).

Please give a detailed explanation.

This answer has to be done in MS Excel.