You have a tea stall since 2018. Information of your business in 2019 are as follows:

Selling price was 10 per cup

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 = 500/month

Rent = 1,000/month

Utility = 200/month

Depreciation = 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 2020 (PCORONA virus year ) and another Master Budget for the year 2020 (year of neo normal). 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 2020 and 2021 Master Budget i.e., during COVID 19 situation and during neo normal. 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).

Note:

1. You must NOT go outside for data collection. You have do the assignment based on your judgement and using the google, internet etc.

2. No word limit